Datadog (DDOG) reported net income of $118.3 million in the third quarter of 2026, compared with $33.9 million in the same period a year earlier. Diluted earnings per share (EPS) were $0.32, versus $0.10 in 3Q25. Revenue was $1.20 billion ($1,197.1 million), up 35% from 3Q25.
GAAP (the official accounting standard) operating income was $74.7 million, with an operating margin of 6%. In 3Q25, the company had an operating loss of $5.8 million. Non-GAAP operating income (which excludes items such as stock-based compensation and payroll taxes tied to stock awards) was $334.3 million, with an adjusted margin of 28%. Non-GAAP earnings per share were $0.81, versus $0.55 a year earlier.
Cash provided by operating activities totaled $290 million, and free cash flow was $250.6 million, with a margin of 21%. Cash, cash equivalents and marketable securities totaled $5.2 billion as of September 30, 2026. The company had about 4,860 customers with annual recurring revenue (ARR) of $100,000 or more, up 20% from about 4,060 a year earlier.
For the fourth quarter of 2026, Datadog projects revenue between $1.19 billion and $1.20 billion, non-GAAP operating income between $280 million and $290 million, and non-GAAP earnings per share between $0.69 and $0.71. For 2026, the company projects revenue between $4.515 billion and $4.525 billion, non-GAAP operating income between $1.095 billion and $1.105 billion, and non-GAAP earnings per share between $2.73 and $2.75.
CEO Olivier Pomel said: "We are seeing strong adoption of our platform as customers expand their digital operations and their use of AI." The company also launched Scout 1.0, its first specialized AI model, which now powers Bits Investigation.
