Datadog DDOG is set to report third-quarter 2025 results on Nov. 6.
DDOG expects third-quarter 2025 revenues between $847 million and $851 million, representing 23% year-over-year growth. The Zacks Consensus Estimate for revenues is pegged at $849.77 million for the quarter, suggesting a 23.15% rise from the year-ago quarter’s reported figure.
DDOG’s third-quarter 2025 diluted non-GAAP earnings per share are expected to be between 44 and 46 cents.
The Zacks Consensus Estimate for Datadog’s third-quarter earnings is pegged at 45 cents per share, unchanged over the past 30 days. The estimate indicates a year-over-year decline of 2.17%.
Datadog, Inc. price-eps-surprise | Datadog, Inc. Quote
Datadog’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average positive surprise of 13.41%.
Let us see how things have shaped up for the upcoming announcement.
Datadog’s expanding security portfolio is expected to have contributed meaningfully to its performance in the third quarter of 2025. The company’s enhanced offerings, including Code Security, Workload Protection and threat-focused solutions, have strengthened its position in the fast-growing cloud security market. Management highlighted that the security suite now generates more than $100 million in annual recurring revenues, growing at a mid-40% year-over-year rate. The ongoing adoption of these capabilities, combined with innovations such as Bits AI Security and Noise Reduction, is likely to have supported revenue growth and multi-product expansion in the to-be-reported quarter.
Datadog’s growing engagement with AI-native companies and enterprises deploying AI workloads is expected to have positively influenced its third-quarter 2025 performance. The company’s observability and security platforms are increasingly being adopted to monitor and optimize AI-powered applications, resulting in increasing data volumes and broader product usage. As more organizations integrate large-scale AI models into production, Datadog’s integrated monitoring capabilities and recently launched AI-focused solutions are anticipated to have strengthened customer adoption trends and multi-product usage during the third quarter.
Datadog’s solid second-quarter finish is expected to have set a strong foundation for its third-quarter 2025 performance. The company reported revenues of $827 million, up 28% year over year, and generated free cash flow of $165 million, underscoring robust operating leverage and healthy demand trends. This solid financial position likely enabled continued investments in product innovation and go-to-market expansion, supporting sustained customer growth and platform adoption momentum in the to-be-reported quarter.
Datadog is expected to have faced margin pressure in the third quarter of 2025 due to continued investments in research and development and cloud infrastructure to support its expanding customer base. These elevated expenses, along with higher hosting and platform scaling costs, are expected to have weighed on operating margins and partially offset the benefits of strong top-line growth during the to-be-reported quarter.
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