DDOG · 10-Q · 2026Q2 · Full report

Research and Development Expense

Datadog, Inc. · 2026-08-06 · Importance 59 · Surprise 48 · In source text

Research and development expense increased 23% to $478.0 million in the second quarter of 2026 from $387.5 million in the second quarter of 2025. Six-month R&D expense increased 25% to $913.3 million from $728.5 million. Personnel and allocated overhead costs for engineering, product and design teams increased $62.5 million in the quarter and $132.8 million year to date due to increased headcount. Cloud infrastructure and software-related investments increased $28.2 million in the quarter and $49.2 million during the first six months.

Key facts

• Research and development expense for the three months ended June 30, 2026 was $477,968 thousand, an increase of $90,486 thousand (23%) versus $387,482 thousand in the prior year period. source
• Research and development expense for the six months ended June 30, 2026 was $913,266 thousand, an increase of $184,723 thousand (25%) versus $728,543 thousand in the prior year period. source
• The three month R&D increase was primarily due to $62.5 million higher personnel costs and $28.2 million higher cloud infrastructure and software-related investments. source
• The six month R&D increase was primarily due to $132.8 million higher personnel costs and $49.2 million higher cloud infrastructure and software-related investments. source

Impact estimates