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

Prestige Consumer Healthcare (PBH) Beats Q2 Earnings; Near-Term Outlook Cautious
November 6, 2025, 10:44 AM EST. Prestige Consumer Healthcare (PBH) posted Q2 earnings of $1.07 per share, ahead of the Zacks Consensus of $0.97 and marking a +10.3% surprise. Revenue came in at $274.11 million, beating the consensus by 6.87% versus year-ago revenue of $283.79 million. Over the last four quarters, PBH has beaten EPS estimates three times. The stock has slid about 23.4% year to date, underperforming the S&P 500 (+15.6%). The firm carries a Zacks Rank #4 (Sell), signaling near-term underperformance unless management provides a positive earnings outlook on the call. For the coming quarter, current estimates are $1.23 on $294.9 million in revenue; FY guidance sits at $4.51 on $1.1 billion in revenue.
Arhaus, Inc. (ARHS) Beats Q3 EPS and Revenue; Zacks Rank #2 Buy Ahead of Outlook
November 6, 2025, 10:42 AM EST. Arhaus, Inc. (ARHS) reported Q3 earnings of $0.09 per share, beating the Zacks Consensus by $0.01 and posting a +12.5% surprise from a year ago. Revenue was $344.57 million, topping estimates by about 1%. The company has exceeded EPS estimates in three of the last four quarters and has beat revenue estimates in two of the last four. Year-to-date, ARHS has risen about 3.8%, underperforming the S&P 500's gain of ~15.6%. Ahead of the call, the Zacks Rank remains #2 Buy. For the coming quarter, consensus is $0.10 per share on $348.02 million in revenue, and full-year guidance sits at $0.45 on $1.36 billion in revenue. Management commentary will shape the near-term outlook.
Epam (EPAM) Q3 Earnings Beat; Revenue Rises, But Stock Faces Mixed Outlook
November 6, 2025, 10:40 AM EST. Epam (EPAM) reported Q3 earnings of $3.08 per share, beating the Zacks Consensus Estimate of $3.02 and delivering a +1.99% surprise. Revenue reached $1.39 billion, ahead of the consensus by 1.44% versus $1.17 billion a year ago. The company has topped estimates in all four of the past four quarters. Despite the beat, shares are down about 31.2% year-to-date as the broader market climbs. Outlook signs show a current-quarter consensus of $2.90 on $1.38 billion in revenue and a full-year view of $11.11 on $5.41 billion. Market focus will shift to management commentary for earnings trajectory and any revisions to the IT Services outlook and estimates.
Cars.com Q3 Results: Revenue In Line, EBITDA Beat, Margin Expansion
November 6, 2025, 10:38 AM EST. Cars.com (NYSE:CARS) reported a Q3 that largely met expectations on revenue and adjusted earnings, while delivering a clear EBITDA beat and margin expansion. Revenue was $181.6 million, essentially in line with consensus of $181.4 million. Adjusted EPS came in at $0.48 vs $0.49 expected. Adjusted EBITDA totaled $54.63 million, ahead of the $53.51 million estimate, with a 30.1% EBITDA margin and Operating Margin of 9.3% (up from 6.4% a year ago). Free Cash Flow Margin jumped to 29% from 10.2%. Dealer Customers rose to 19,526, up 271 YoY. The company's current Market Capitalization is about $639.6 million. Looking ahead, analysts see about 2.4% revenue growth over the next 12 months, with modest long-term growth versus peers.
Thermon THR Q3 2025 Beats Estimates; Raises Revenue and EPS Guidance
November 6, 2025, 10:36 AM EST. Thermon (NYSE:THR) delivered a strong Q3 CY2025, topping estimates with revenue of $131.7 million, up 14.9% YoY. The company's non-GAAP EPS of $0.55 beat consensus by 51.7%, and Adjusted EBITDA reached $30.61 million, well above expectations. Management lifted the full-year revenue guidance to a midpoint of $516.5 million and increased the midpoint Adjusted EPS guidance to $2.08, signaling improved profitability and cash generation. The quarter's operating margin was 16.4%, while free cash flow margin stood at 3.3%. With a market cap near $972 million, Thermon remains a proxy for demand in engineered industrial process heating.