Datadog Reports Q3 2026 Revenue Growth of 35% Driven by Multi-Product Adoption
Datadog (DDOG) reported strong third-quarter fiscal 2026 results, with revenue reaching $1.20 billion, a 35% increase year-over-year. The growth was primarily driven by increased multi-product adoption and expansion into AI-related monitoring services. Notably, the company saw an eightfold increase in GPU device monitoring as customers scale AI workloads, alongside significant growth in AI cost tracking tools. Financial health remains robust with a non-GAAP gross margin of 81.2% and operating margins expanding to 28%. While management noted some headwinds, including reduced usage from its largest customer and seasonal year-end effects, the company maintains strong liquidity with $5.2 billion in cash and marketable securities. Looking ahead, Datadog provided Q4 revenue guidance between $1.19 billion and $1.20 billion.
Tickers: $DDOG
Topics: ARR Free Cash Flow Gross Margin Multi-product Adoption Revenue Growth