Datadog (DDOG) Jumps After Q3 2025 Beat: $886M Revenue, $0.55 EPS; Full‑Year Outlook Raised

6 November 2025

Cloud observability and security provider Datadog (NASDAQ: DDOG) posted a stronger‑than‑expected third quarter and lifted its full‑year guidance, citing continued momentum with large customers and rapid product innovation in AI observability and security. The company reported revenue of $886 million (+28% YoY) and non‑GAAP EPS of $0.55, both above Street expectations. Premarket, shares rose roughly 7% on the news. ^[1]

Revenue: $886M (+28% YoY), ahead of consensus. Non‑GAAP EPS: $0.55. GAAP EPS: $0.10; GAAP net income: $33.9M. ^[2]
Cash generation:Operating cash flow $251M; free cash flow $214M. ^[3]
Customer scale: ~4,060 customers with $100K+ ARR (up ~16% YoY). ^[4]
Guidance raised:FY25 revenue $3.386–$3.390B;FY25 non‑GAAP EPS $2.00–$2.02. Q4 revenue $912–$916M; non‑GAAP EPS $0.54–$0.56. ^[5]
Market reaction: Shares traded higher premarket after the beat and raise. ^[6]

By the numbers: Where Datadog beat

Datadog’s top‑line of $885.7M–$886M topped the consensus revenue estimate of roughly $852.8M; non‑GAAP EPS of $0.55 exceeded a consensus near $0.47, according to Refinitiv. The company also reported non‑GAAP operating income of $207M (23% margin). ^[7]

GAAP profitability remained positive, with $33.9M in net income (GAAP EPS $0.10), while cash generation stayed robust: $251M operating cash flow and $214M free cash flow for the quarter. The balance sheet ended September 30 with $4.1B in cash and marketable securities. ^[8]

Outlook: Raised across the board

Management raised full‑year 2025 guidance to $3.386–$3.390B in revenue (from prior levels earlier in the year) and $2.00–$2.02 in non‑GAAP EPS. For Q4, Datadog guided $912–$916M of revenue and $0.54–$0.56 in non‑GAAP EPS—both above typical Street expectations referenced by multiple data providers this morning. ^[9]

What powered the quarter

Datadog highlighted continued traction with larger customers—$100K+ ARR customers climbed to ~4,060, up ~16% year over year. The company also crossed 1,000+ integrations on its unified platform and flagged rapid releases tied to AI, including AI Observability & Security, Bits AI Agents for SRE/Developers/Security, Datadog MCP Server, and a time‑series foundation model (“TOTO”) aimed at accelerating troubleshooting and automation. ^[10]

Datadog further expanded support for Oracle Cloud Infrastructure (OCI)—adding GPU monitoring, cloud cost management, and Cloud SIEM—and noted progress toward higher‑level government compliance for its public‑sector offerings. ^[11]

Street & market context (today)

News of the beat and raise pushed DDOG higher in early trading. Multiple outlets framed the report as a clear upside surprise, with particular emphasis on large‑customer growth and above‑consensus guidance for the December quarter. ^[12]

How this compares to expectations heading into the print

Back on August 7, 2025, Datadog had already telegraphed an upbeat Q3 outlook versus consensus; today’s results landed ahead of those targets, reinforcing the demand backdrop for cloud observability and security tied to AI workloads. ^[13]

Valuation check (for investors following DDOG)

Ahead of earnings, valuation remained a talking point: Simply Wall St noted Datadog’s P/S around 18× vs. ~5× for the software group, reflecting the premium embedded in shares following a ~123% three‑year run. Today’s beat/raise may keep that debate front and center. (This isn’t investment advice.) ^[14]

What to watch next

Q4 execution: Whether Datadog sustains double‑digit growth and margin expansion into year‑end under the raised outlook. ^[15]
AI product adoption: Uptake of AI observability/security and “Bits AI” agents and how they translate into multi‑product expansion with existing customers. ^[16]
Large‑customer adds: Continued growth in $100K+ ARR cohort as a signal of enterprise demand health. ^[17]

Earnings call details (today)

The Q3 FY2025 earnings call is scheduled for 8:00 a.m. ET with a live webcast and replay available via Datadog’s investor relations site. ^[18]

Sources (Nov. 6, 2025)

Datadog press release: “Datadog Announces Third Quarter 2025 Financial Results.” Financials, guidance, product and customer metrics. ^[19]
Reuters/Refinitiv via TradingView: Consensus context and highlights of the beat and outlook. ^[20]
Associated Press (Times Union): GAAP results snapshot including net income and GAAP EPS. ^[21]
Seeking Alpha: Early market reaction; shares up ~7% premarket after beat/raise. ^[22]
Investing.com: Guidance comparisons versus consensus for Q4 and FY2025. ^[23]
Simply Wall St (Nov. 5, 2025): Valuation context and multi‑year stock performance. ^[24]

Editor’s note: This article is for informational purposes and not investment advice.

Should You Buy DataDog Stock Right Now in 2025? | DDOG Stock Analysis

Watch this video on YouTube.

References

Tags:

Mateusz Kaczmarek Latest posts

A technology and finance expert writing for TS2.tech. He analyzes developments in satellites, telecommunications, and artificial intelligence, with a focus on their impact on global markets. Author of industry reports and market commentary, often cited in tech and business media. Passionate about innovation and the digital economy.

View all

Lam Research (LRCX) Among 7 Funds in Latest 13F Filings (03/31/2025)
November 6, 2025, 1:14 PM EST. New review of the 13F filings for 03/31/2025 shows Lam Research Corp (LRCX) is held by 7 of the 26 funds in the latest batch. The piece cautions that 13F filings disclose long positions only and may miss shorts, so the picture can be incomplete. Across the batch, aggregate LRCX shares rose about 2.55%, from 506,794,121 to 519,697,853 shares between 12/31/2024 and 03/31/2025. Within this batch, 1 fund increased, 4 decreased, and 2 opened new positions; Ethos Financial Group LLC exited LRCX. The article notes that comparing groups of funds can reveal themes and stock ideas worth further research, including Lam Research Corp (LRCX).
Stock futures flat as AI-led pullback cools November start: Live market updates
November 6, 2025, 1:11 PM EST. Stock futures were little changed after an AI-driven stretch, but the session saw major indices retreat as Palantir and other AI names led losses. The S&P 500 fell about 1.2%, the Nasdaq dropped ~2.0%, and the Dow slid ~0.5%. Palantir tumbled ~8% despite beating estimates and guiding higher, highlighting lofty valuations after a year of AI-driven gains. The forward P/E for the S&P 500 rose above 23, near the highest since 2000, as investors weigh whether profits will justify capex. Analysts like Anthony Saglimbene warned the rally could be stretched, while comments from Goldman Sachs and Morgan Stanley executives pointed to potential drawdowns in the next 12-24 months. A period of consolidation may be in store even with robust fundamentals.
Stock futures little changed after AI trade recovers from pullback: Live updates
November 6, 2025, 1:08 PM EST. U.S. stocks cooled Thursday as lawmakers weighed tariffs and AI-related names traded at lofty valuations. The S&P 500 slipped about 0.5%, the Nasdaq Composite fell 0.7%, and the Dow declined ~0.6% as investors parsed a wave of AI earnings and policy risk. Objective data showed October layoffs surged to 153,074, the highest in 22 years, stoking concerns about the economy. In equities: Marvell Technology rose ~3% on talk of a SoftBank takeover; Qualcomm slid after mixed results; Nvidia faced pressure despite AI demand; AMD jumped over 2% after solid Q3; Broadcom, Micron gained on AI optimism; Oracle partially recovered losses. The Supreme Court's tariff review heightened expectations of a tariff rollback that could lift stocks.
BillionToOne (BLLN) Rings the Opening Bell at Nasdaq MarketSite
November 6, 2025, 1:04 PM EST. BillionToOne (BLLN), a leader in molecular diagnostics, rang the Opening Bell at the Nasdaq MarketSite in Times Square to celebrate market visibility. CEO Dr. Oguzhan Atay and CTO Dr. David Tsao, co-founders, led the ceremony as the company reaffirmed its mission to deliver powerful and accessible tests. The event underscores BillionToOne's commitment to advancing diagnostic innovation and expanding patient access to accurate, rapid health insights. With this milestone, investors gained a closer look at a company pursuing scalable, clinically impactful solutions in a rapidly evolving diagnostic landscape.
Suke trims IPO deal size by 33% to raise $7M ahead of Nasdaq listing
November 6, 2025, 1:02 PM EST. Malaysian media company Suke is trimming its IPO, cutting the proposed deal size by 33% ahead of a $7 million offering. Suke plans to raise by selling 1.5 million shares at $4-$5, down from 2 million shares at $4-$6. At the midpoint of the revised range, proceeds are about a third lower and the implied market cap sits near $107 million. Founded in 2021, Suke posted roughly $4 million of revenue for the year ended June 30, 2025. The company intends to list on Nasdaq under the symbol SUKE, with Blue Diamond Securities of America as sole bookrunner. The update follows a March 2024 prospectus revision.