Datadog Inc. (NASDAQ:DDOG) reported fourth‑quarter 2025 revenue of $953.2 million, a 29% year‑over‑year increase, and posted a non‑GAAP earnings per share of $0.59, beating analyst expectations of $0.56. The company added 141 new customers with $1 million or more in annual recurring revenue, bringing the total to 603 such customers and driving a 28% YoY growth in that segment.
The results were driven by a 30% increase in revenue from existing customers, reflecting the platform’s expanding multi‑product adoption. Datadog also launched its Bits AI SRE Agent, a new AI‑powered incident‑resolution tool, and expanded its Flex Logs offering, both of which are expected to contribute to future top‑line growth. Gross margin remained flat at 78% as cloud infrastructure costs rose in line with revenue growth.
For the first quarter of fiscal 2026, Datadog is guiding revenue of $951–$961 million and adjusted earnings per share of $0.49–$0.51, slightly above consensus estimates. The guidance signals management confidence in continued demand for its observability and security platform, while the company notes that its AI‑native customer base is growing rapidly and represents a significant tailwind for the business.
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