DDOG · Earnings call · 2026Q2T · Full report

Market Demand Trends

Datadog, Inc. · 2026-08-06 · Importance 47 · Surprise 48

Datadog reported healthy, broad-based demand across AI-native and non-AI customers, with non-AI customer revenue growth accelerating to the high 20s percent year-over-year from the mid-20s percent in the prior quarter and 18% in the year-ago quarter. Customers ranging from startups to large enterprises are adopting AI, increasing cloud consumption, modernization activity, and usage of Datadog to observe and secure cloud and AI workloads. Management said growth outside the largest customer has accelerated for five consecutive quarters, driven primarily by existing customers increasing volumes, moving to the cloud, and adopting additional products.

Key facts

• For the sixth year in a row, Datadog named a leader in the 2026 Gartner Magic Quadrant for Observability Platforms
• AI customers are growing a lot faster than non-AI.
• The non-AI has accelerated and the AI, excluding the largest customer, continues.