Datadog Stock Outlook: Analyst Estimates and Ratings

Datadog, Inc. (DDOG) is a leading cloud-based monitoring and analytics platform with a market cap of $44.5 billion. Its shares have underperformed the broader market over the past year, but its earnings surprise history is solid. The consensus rating among 40 analysts is a "Strong Buy" based on 30 "Strong Buy" ratings and one "Strong Sell." The company has reported 28% year-over-year revenue growth and unveiled over 125 new innovations at its DASH 2025 conference.

Datadog, Inc. (DDOG), a leading cloud-based monitoring and analytics platform, reported its second-quarter 2025 results, showcasing robust financial performance and innovation. The company's revenue grew by 28% year-over-year to $827 million [3], and its non-GAAP operating income stood at $164 million with a 20% margin. The company ended the quarter with approximately 3,850 customers generating $100,000 or more in ARR, a 14% increase from a year ago [3].

Datadog's shares climbed over 5% on Aug. 7 after the earnings report, with analysts generally positive about the company's prospects. Among the 40 analysts covering DDOG stock, the consensus rating is a "Strong Buy" [1], based on 30 "Strong Buy" ratings, three "Moderate Buys," six "Holds," and one "Strong Sell." This consensus rating is more bullish than three months ago, when 29 analysts had suggested a "Strong Buy" for the stock [1].

On Aug. 9, Canaccord Genuity analyst Kingsley Crane reaffirmed a "Buy" rating on Datadog and increased the price target from $145 to $160, reflecting continued confidence in the company's growth potential [1]. The mean price target of $161.38 suggests a 25.1% premium to DDOG from current levels, with the Street-high target of $200 representing an upside potential of 55.1% [1].

The company's earnings surprise history is solid, with DDOG surpassing or meeting the consensus estimate in each of the last four quarters [2]. For the current fiscal year, ending in December, Street expects DDOG’s EPS to fall 46.8% year over year to $0.25 [1].

At its DASH 2025 conference, Datadog unveiled over 125 new innovations, including enhancements in AI observability and security. The company is pushing the boundaries of observability and monitoring with product launches, such as specialized AI agents and log management upgrades [2]. This relentless focus on innovation positions Datadog for sustained growth across its diversified portfolio.

For the third quarter of 2025, Datadog anticipates revenues between $847 million and $851 million, representing 23% year-over-year growth. The Zacks Consensus Estimate for revenues is pegged at $848.45 million [2]. Non-GAAP EPS is expected to be 44-46 cents, with the Zacks Consensus Estimate for earnings pegged at 41 cents per share [2].

Despite the strong performance, DDOG's shares have appreciated 16.7% in the trailing 12 months, significantly underperforming the Zacks Computer and Technology sector's return of 29.4% [2]. However, the company's solid earnings surprise history, robust growth trajectory, and bullish analyst ratings suggest that DDOG could be poised for further upside.

References:
[1] https://www.tremont.coop/news/story/34112747/datadog-stock-analyst-estimates-ratings
[2] https://www.nasdaq.com/articles/datadog-q2-earnings-revenues-beat-solid-customer-growth
[3] https://investors.datadoghq.com/news-releases/news-release-details/datadog-announces-second-quarter-2025-financial-results