DDOG · 10-Q · 2026Q3 · Full report

Research and Development Expense

Datadog, Inc. · 2026-11-04 · Importance 58 · Surprise 30 · Matches filing data

Q3 2026 R&D expense increased 22% year over year to $491.6 million, up $89.6 million. The increase included $58.8 million in personnel and allocated overhead costs for engineering, product, and design teams due to increased headcount, plus $30.8 million in cloud infrastructure and software-related investments. For the first nine months of 2026, R&D expense rose 24% to $1.405 billion, including $191.6 million in higher personnel costs and $80.0 million in additional cloud infrastructure and software-related investments.

Key facts

• Datadog's research and development expense increased $274.3 million, or 24%, in the nine months ended September 30, 2026, primarily due to $191.6 million more in personnel and allocated overhead costs and $80.0 million more in cloud infrastructure and software investments. source
• Datadog's research and development expense increased $89.6 million, or 22%, for the three months ended September 30, 2026, primarily due to $58.8 million in personnel and allocated overhead costs and $30.8 million in cloud infrastructure and software investments. source
• Datadog expects research and development expense to increase in absolute dollars as the business grows, particularly from continued platform investment. source

Impact estimates