Datadog, Inc. (DDOG) Earnings Call Transcripts

Datadog, Inc.'s Latest Earnings Call - Q2 FY2026

In Q2 2026, Datadog, Inc. reported revenue of $1.12 billion, a 36% year-over-year increase, exceeding guidance expectations. The company maintained a non-GAAP operating income of $257 million, yielding a 23% operating margin. Management provided guidance for Q3 revenue in the range of $1.135 billion to $1.145 billion, reflecting a year-over-year growth of 28% to 29%, while full-year guidance was maintained at $4.45 billion to $4.47 billion, indicating a 30% growth. The results were driven by strong customer demand across both AI and non-AI segments, though management noted a reduction in usage from their largest customer, which was factored into guidance adjustments.

Reported metrics

Guidance from management

Management expects Q3 revenue in the range of $1.135 billion to $1.145 billion, representing a 28% to 29% year-over-year growth. Full-year revenue guidance remains unchanged at $4.45 billion to $4.47 billion, indicating a 30% growth.

What management said

Yes, I think just to get specific on the guidance, we, last quarter and previous quarters, said that we essentially have a level of commit, and we can derisk our guidance by using that. And then as you know, in most of our large customers, we have variability relating to the commit. So take that into consideration.

Yes. The last thing I will say because I know it's on people's minds is if you back out our largest customer from our growth, you get pretty much the same growth rate as the rest of the business has been accelerating very steadily. Actually, we've seen, I think, now 5 quarters of continuous acceleration from the rest of the business. And we feel very good about the -- what we see in the market.

What analysts pressed on

Analysts expressed concerns regarding the reduction in usage from Datadog's largest customer and its potential impact on future growth. There were also questions about the sustainability of growth in the non-AI segment amidst cautious CFO budgeting and spending considerations.

Main topics on the call

• Revenue Growth Acceleration — Datadog's revenue grew by 36% year-over-year, reaching $1.12 billion, which was above the high end of guidance. CEO Olivier Pomel noted, "Our revenue growth in Q2 has accelerated across our customer base," indicating bro...
• Customer Growth and Retention — The company ended Q2 with approximately 33,400 customers, up from 31,400 a year ago. Net revenue retention remained strong in the low 120s, with churn in the mid- to high 90s, highlighting the mission-critical nature of ...
• AI Customer Adoption — Datadog reported a significant increase in AI customers, now totaling 750, including 31 customers spending over $1 million annually. "AI is a tailwind for Datadog today as cloud consumption grows and drives more usage of...
• Guidance Adjustments — Management provided Q3 revenue guidance of $1.135 billion to $1.145 billion, reflecting a 28% to 29% year-over-year growth. The full-year guidance remained unchanged at $4.45 billion to $4.47 billion, indicating a 30% gr...

Read the full Datadog, Inc. transcript (Q2 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 98 Datadog, Inc. earnings call transcripts on record, spanning February 13, 2020 to August 6, 2026. Based on this history, Datadog, Inc. reports quarterly. The most recent call on file is dated August 6, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

DDOG

Exchange

NasdaqGS

Country

US

Sector

Information Technology

Industry

Software

Calls on record

98

First call

February 13, 2020

Most recent

August 6, 2026

Reporting cadence

quarterly