DDOG · Earnings call · 2026Q2T · Full report
Guidance / Outlook
Datadog, Inc. · 2026-08-06 · Importance 90 · Surprise 84 · No source text
Datadog expects third-quarter 2026 revenue of $1.135 billion to $1.145 billion, representing 28% to 29% year-over-year growth, with non-GAAP operating income of $260 million to $270 million and a 23% to 24% operating margin. Full-year 2026 revenue guidance is $4.45 billion to $4.47 billion, representing 30% year-over-year growth, while non-GAAP operating income is expected at $1.01 billion to $1.03 billion, or a 23% margin. Management fully derisked guidance for a usage reduction by its largest customer following a renewal, while maintaining its broader conservative guidance methodology; fiscal 2026 CapEx and capitalized software are expected at 4% to 5% of revenue.
Key facts
- Q3 revenue guidance: $1.135 billion to $1.145 billion, representing 28% to 29% year-over-year growth
- Full fiscal year 2026 revenue guidance: $4.45 billion to $4.47 billion, representing 30% year-over-year growth
- Full fiscal year 2026 non-GAAP operating income guidance: $1.01 billion to $1.03 billion implying an operating margin of 23%
- Q3 non-GAAP operating income guidance: $260 million to $270 million implying operating margin of 23% to 24%
- Q3 non-GAAP net income per share guidance: $0.63 to $0.65 based on approximately 378 million weighted average diluted shares outstanding
- Full fiscal year 2026 non-GAAP net income per share guidance: $2.50 to $2.54 based on approximately 376 million average diluted shares outstanding
- Expect CapEx and capitalized software together to be in the 4% to 5% of revenue range in fiscal 2026
- Expect net interest and other income for fiscal year 2026 to be approximately $180 million
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | positive | probable | +8.0% | Expect net interest and other income for fiscal year 2026 to be approximately $180 million |
| revenue | positive | committed | — | Q3 revenue guidance: $1.135 billion to $1.145 billion, representing 28% to 29% year-over-year growth |
| revenue | positive | committed | — | Full fiscal year 2026 revenue guidance: $4.45 billion to $4.47 billion, representing 30% year-over-year growth |
| operating_income | positive | committed | — | Full fiscal year 2026 non-GAAP operating income guidance: $1.01 billion to $1.03 billion implying an operating margin of 23% |
| operating_income | positive | committed | — | Q3 non-GAAP operating income guidance: $260 million to $270 million implying operating margin of 23% to 24% |
| net_income | positive | committed | — | Q3 non-GAAP net income per share guidance: $0.63 to $0.65 based on approximately 378 million weighted average diluted shares outstanding |
| net_income | positive | committed | — | Full fiscal year 2026 non-GAAP net income per share guidance: $2.50 to $2.54 based on approximately 376 million average diluted shares… |
| cash | negative | probable | — | Expect CapEx and capitalized software together to be in the 4% to 5% of revenue range in fiscal 2026 |
| assets | positive | probable | — | Expect CapEx and capitalized software together to be in the 4% to 5% of revenue range in fiscal 2026 |
| cash | negative | probable | — | Expect cash taxes in 2026 to be about $30 million to $40 million |
| net_income | unclear | committed | — | Continue to imply a 21% non-GAAP tax rate for 2026 and going forward |