01—Abstract
Summary
Summary of the 10-Q filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Datadog, Inc. reported strong growth in its first quarter of 2026, with revenue increasing 32% year-over-year to $1.01 billiona.
This growth was driven by both new customer acquisition and significant expansion within its existing customer base. The company demonstrated robust profitability, achieving a net income of $52.6 millionb, a substantial increase from the prior year's $24.6 million. Operating cash flow also saw a healthy increase, underscoring the company's strong financial performance and operational efficiency.
Financially, Datadog maintains a solid liquidity position with over $4.7 billionc in cash and marketable securities as of March 31, 2026. The company's balance sheet reflects continued investment in property and equipment, alongside a growing goodwill balance due to acquisitions. The expansion of its platform, with customers increasingly adopting multiple products, along with a strong dollar-based net retention rate, indicates healthy customer engagement and confidence in Datadog's offerings.
02—Key points
Key Highlights
- Revenue grew 32% year-over-year to $1.01 billion in Q1 2026.
- Net income significantly increased to $52.6 million, compared to $24.6 million in Q1 2025.
- Operating cash flow improved to $334.6 million from $271.5 million in the prior year.
- Total customers grew to approximately 33,200 as of March 31, 2026.
- Customers with Annual Recurring Revenue (ARR) of $100,000 or more increased to 4,550.
- Dollar-based net retention rate improved to the low-120% range.
- Datadog ended the quarter with $426.4 million in cash and cash equivalents and $4.3 billion in marketable securities.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Datadog kept $0.05.
- Revenue$1.01B100.0%
- Cost of revenue−$209.2M20.8%
- Gross profit$797.2M79.2%
- Operating costs−$789.9M78.5%
- Operating income$7.3M0.7%
- Interest, other & tax$45.2M4.5%
- Net income$52.6M5.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 7, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.01B$761.55M | +32.2% |
| Cost of Revenue | $209.23M$157.63M | +32.7% |
| Gross Profit | $797.20M$603.92M | +32.0% |
| R&D Expenses | $435.30M$341.06M | +27.6% |
| Operating Expenses | $789.87M$616.35M | +28.2% |
| Operating Income | $7.33M-$12.42M | +159.0% |
| Interest Expense | $1.05M$2.02M | −48.1% |
| Net Income | $52.57M$24.64M | +113.4% |
| EPS (Basic) | $0.15$0.07 | +114.3% |
| EPS (Diluted) | $0.15$0.07 | +114.3% |
| Shares Outstanding (Basic) | 353.27M343.10M | +3.0% |
| Shares Outstanding (Diluted) | 364.73M363.08M | +0.5% |
05—Questions
Frequently Asked Questions
What was Datadog's revenue performance in the first quarter of 2026?
Datadog reported a 32% year-over-year increase in revenue for the first quarter ended March 31, 2026, reaching $1.01 billion. This growth was attributed to both new customer acquisition and expansion within the existing customer base.
How did Datadog's profitability change in Q1 2026?
The company demonstrated significant improvement in profitability, with net income rising to $52.6 million for the three months ended March 31, 2026, compared to $24.6 million in the same period of 2025. This reflects strong operational execution and revenue growth.
What is Datadog's current liquidity position?
As of March 31, 2026, Datadog maintained a strong liquidity position with $426.4 million in cash and cash equivalents and $4.3 billion in marketable securities, totaling over $4.7 billion in liquid assets.
How is customer expansion trending at Datadog?
Datadog continues to see strong customer expansion. The number of customers with an Annual Recurring Revenue (ARR) of $100,000 or more grew to 4,550, representing 90% of the total ARR. Additionally, the trailing 12-month dollar-based net retention rate improved to the low-120% range, indicating healthy growth from existing customers.
06—Continue