DDOG Earnings Explosion: Datadog Stock Rockets on Stellar EPS & Guidance That Crushes Expectations

Datadog just delivered the kind of earnings report that makes traditional software stocks look like they're moving in slow motion.

EPS Performance That Turns Heads

When your earnings per share blow past what the suits on Wall Street predicted, you get this kind of vertical movement. The numbers don't lie - this wasn't just a beat, it was a demolition of expectations.

Guidance That Actually Guides

Forward-looking statements usually come with more disclaimers than a prescription drug commercial. Not this time. The company's projections have investors scrambling to recalculate their models.

Meanwhile, legacy tech companies are still trying to figure out why their 'digital transformation' PowerPoint decks aren't moving the needle. Datadog shows what happens when you actually deliver results instead of corporate buzzwords.

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Datadog reported revenue of $886 million for Q3 2025, scoring another victory over analysts’ estimate of $853.62 million. It also represented a 28% increase year-over-year from $690 million. The company also reported $251 million in operating cash FLOW and $214 million in free cash flow.

Datadog stock was up 17.07% in pre-market trading on Thursday, following a 1.61% drop yesterday. The shares have rallied 8.46% year-to-date and 19.41% over the past 12 months.

Datadog Guidance

Datadog also impressed investors with its guidance for Q4 2025. The company expects adjusted EPS to come in between 54 cents and 56 cents, alongside revenue between $912 million and $916 million. That looks good compared to Wall Street’s estimate of 45 cents per share and revenue of $886.37 million.

Datadog provided investors with guidance for the full year of 2025 in its latest earnings report. It expects adjusted EPS of $2.00 to $2.02 and revenue between $3.386 billion and $3.39 billion. For comparison, analysts’ expectations are for adjusted earnings of $1.84 per share and revenue of $3.43 billion.

Is Datadog Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for Datadog is Strong Buy, based on 29 Buy and five Hold ratings over the past three months. With that comes an average DDOG stock price target of $171.54, representing a potential 10.69% upside for the shares. These ratings and price targets will likely change as analysts update their coverage after today’s earnings report.