At a glance
Datadog Inc is worth $77.60B, about 697 times its fiscal 2025 earnings. Revenue grew 27.7% to $3.43B in fiscal 2025, with 3.1% kept as profit; over 5 years it has grown 41.5% a year. It pays no dividend. The stock returned +32.7% over the past year with dividends reinvested and +5.6% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 38.8% in the 2020 crash (S&P 500: 33.7%) and 53.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 41 months after the lows.
The business in plain English
Datadog sells cloud software that helps companies keep their apps and computer systems running. The industry term is “observability.” It means gathering the data a system gives off, such as performance metrics, event logs and traces of each user request, so engineers can find and fix problems quickly. Datadog's platform puts infrastructure monitoring, application performance monitoring, log management, user experience monitoring, cloud security and service management in one place. It connects to more than 1,000 other technologies. In 2025 it added on-call scheduling, product analytics and Bits AI SRE Agent, an AI tool that investigates alerts on its own.
Customers pay subscription fees, and pricing is tied to how much they use. Datadog calls its model “land and expand.” A customer starts small, sometimes with a free trial or the free tier. Over time it uses more and adds other products. As of December 31, 2025, Datadog had about 32,700 customers in more than 160 countries. They range from small firms to large enterprises, in both the private and public sectors.
Revenue was $3.43 billion for the year ended December 31, 2025, up 27.7% from the year before. North America supplied $2.43 billion, or 71% of the total. International customers supplied the other 29%, about $994 million.
Price history
The interactive chart needs JavaScript.
DDOG +32.7% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By geography
| North America | $2.43B | 71% |
| International | $994.1M | 29% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $1.12B, up 35.6% from a year earlier, and net income was $44.6M (+1583.3%).
- For fiscal 2025, revenue was $3.43B (+27.7% year over year; +41.5% a year from FY2020 to FY2025) with a 3.1% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +41.5% good |
|---|---|
| Operating margin | -1.3% weak |
| Free cash flow margin | 29.2% good |
| Return on equity (FY2025) | 2.9% weak |
| Return on assets (FY2025) | 1.6% weak |
| Net cash (cash minus debt) | $4.00B good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $603.5M | $-24.5M | $103.7M |
| FY2021 | $1.03B | $-20.7M | $276.6M |
| FY2022 | $1.68B | $-50.2M | $383.1M |
| FY2023 | $2.13B | $48.6M | $632.4M |
| FY2024 | $2.68B | $183.7M | $835.9M |
| FY2025 | $3.43B | $107.7M | $1.00B |
Valuation snapshot
| Market value | $77.60B |
|---|---|
| P/E ratio | 697.1 |
| Dividend yield | None |
Rank among 1514 US companies
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| DDOG price data to Nov 2, 2026 | +58.9% | +32.7% | +39.7% | +5.6% | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +58.9% |
| 2025 | -4.8% |
| 2024 | +17.7% |
| 2023 | +65.1% |
| 2022 | -58.7% |
| 2021 | +80.9% |
| 2020 | +160.6% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 30.4% over that stretch · deepest drop along the way 38.8%, back to its old high 1.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 49.7% over that stretch · deepest drop along the way 53%, back to its old high 40.7 months after the low |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 137 sales ($133.2M), 129 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Sep 2, 2026 | Olivier Pomel Chief Executive Officer, Director | sell | $5.6M |
| Sep 23, 2026 | Alexis Le-Quoc Chief Technology Officer, Director | sell (plan) | $5.5M |
| Sep 8, 2026 | Olivier Pomel Chief Executive Officer, Director | sell (plan) | $5.1M |
| Oct 7, 2026 | Alexis Le-Quoc Chief Technology Officer, Director | sell (plan) | $5.1M |
| Sep 2, 2026 | Alexis Le-Quoc Chief Technology Officer, Director | sell | $4.6M |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 8.2% | Sep 30, 2025 |
| Vanguard Capital Management | 7.46% | Mar 31, 2026 |
| Vanguard Portfolio Management | 5.37% | Mar 31, 2026 |
| FMR LLC | 5.1% | Sep 30, 2025 |
ETFs with the most weight in DDOG
| WCBR WisdomTree Cybersecurity Fund | 4.83% |
| DAT ProShares Big Data Refiners ETF | 3.24% |
| FCLD Fidelity Cloud Computing ETF | 2.77% |
| GTEK Goldman Sachs Future Tech Leaders Equity ETF | 2.45% |
| XDAT Franklin Exponential Data ETF | 2.32% |
| FDTX Fidelity Disruptive Technology ETF | 2.22% |
| THNQ ROBO Global Artificial Intelligence ETF | 2.17% |
| JXX Janus Henderson Transformational Growth ETF | 1.89% |
What could go wrong
- Growth depends on existing customers spending more. Much of Datadog's growth comes from customers using more and adding products. If they fail to renew, trim usage or cut cloud budgets, revenue growth could slow quickly.
- Bugs, outages and reliance on cloud hosts. Customers rely on Datadog to spot their own problems. Bugs or downtime damage trust and can force service credits or refunds. Datadog also depends on outside cloud providers to host its products.
- Larger rivals and fast-moving AI technology. Many competitors are bigger and have more money, and they may cut prices to lure Datadog's customers. Datadog must also keep up with fast technology change, including AI, or fall behind.
- Slowing growth and thin profits. Datadog expects its revenue growth rate to decline as the business matures. It had an operating loss of about $44 million in 2025 and a history of losses, so profits may not last.
- Strict data privacy and security rules. Datadog takes in huge volumes of customer data and must follow strict privacy and security laws that keep changing. A real or perceived failure to comply could harm its reputation and business.
- Volatile shares and limited shareholder voting power. Through October 28, 2026, the stock had fallen as much as 68% from a peak. Two share classes with unequal votes give Class B holders, including executives and directors, concentrated voting control.
Recent events
- Quarterly results released
- Shareholder vote results
- Quarterly results released
- Change to shareholder rights; Bylaws or fiscal year changed; Shareholder vote results; Other company announcement
- Executive or board change
- Quarterly results released
- Quarterly results released
For income and retirement investors
Datadog pays no dividend, and its 2025 annual report says it does not plan to pay one for the foreseeable future. It also spent nothing on share buybacks from FY2021 through FY2025. Instead, it reinvests in growth. As of June 30, 2026, it held about $4.99 billion in cash and investments against $986 million of debt. For an income investor, any return has to come from a rising share price. Turning that into spending money means selling shares, possibly during a slump.
Past downturns have been steep. In the 2020 COVID crash, the stock fell 38.8% from its February 19 peak to its March 16 low, then recovered by May 7, 2020. In the 2022 bear market, it dropped 53% between February 10 and June 16, 2022. It did not regain that peak until November 6, 2025, about 41 months after the low. Like any single stock, Datadog carries more risk than a diversified fund.
Questions investors ask
How does Datadog make money?
Datadog makes money by selling subscriptions to its cloud-based monitoring and security software. Companies use it to watch their servers, apps, logs and user activity in one place, so they can fix problems faster. Pricing is tied to usage, so revenue grows as customers use more and add products. Revenue was $3.43 billion for the year ended December 31, 2025. North America supplied 71% of it and international customers 29%.
Is Datadog profitable?
Yes, but only slightly on a reported basis. In 2025 Datadog earned net income of about $108 million on $3.43 billion of revenue, a 3.1% margin. That was 41.4% less than in 2024. Its operating income was a loss of about $44 million. Cash flow is much stronger. Free cash flow, the cash left after running the business and paying for equipment, was about $1.0 billion, or 29.2% of revenue. In the quarter ended June 30, 2026, net income was about $45 million.
Does Datadog pay a dividend?
No. Datadog does not pay a dividend, and its 2025 annual report says it does not intend to pay one for the foreseeable future. It also made no share buybacks from FY2021 through FY2025. The company keeps its cash to fund growth, and free cash flow was about $1.0 billion in 2025. Investors who need regular income may want to compare it with dividend-paying stocks or funds.
Why is Datadog's P/E ratio so high?
Because its share price is high and its reported profit is small. The P/E, or price-to-earnings ratio, compares the share price with profit per share. As of October 28, 2026, Datadog traded at about 898 times its 2025 diluted earnings of $0.31 per share. That price reflects hopes for growth. Revenue grew about 41.5% a year from 2020 to 2025 and rose 35.6% in the quarter ended June 30, 2026. Datadog expects growth to slow, and a high P/E leaves little room for disappointment.
How volatile is Datadog stock?
Very volatile. Volatility measures how widely the price swings. In the year to October 28, 2026, Datadog's annualized volatility was 68.7%, and the shares fell as much as 48.6% from a high. The deepest drop in its roughly seven-year trading history was 68.1%. Calendar-year returns ranged from a 160.6% gain in 2020 to a 58.7% loss in 2022. The stock was up 104.7% for 2026 through October 28. Its one-year beta of 1.15 means it has tended to swing more than the broad market.