Datadog (DDOG) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue grew 29% year-over-year to $953 million, driven by broad-based demand and significant expansion among both AI-native and traditional customers.

• Bookings reached a record $1.63 billion, up 37% year-over-year, with 18 deals over $10 million in TCV, including two over $100 million.

• Customer base grew to 32,700, with 4,310 customers generating $100,000+ in ARR, accounting for 90% of ARR and up 19% year-over-year.

• Over 400 new features and capabilities launched in 2025, including major AI and security advancements.

• Strong growth in large customers, with 603 generating $1 million+ ARR, up 31% year-over-year.

Financial highlights

• Q4 revenue was $953 million, up 29% year-over-year and 8% sequentially, exceeding guidance.

• Q4 non-GAAP operating income was $230 million (24% margin); GAAP operating income was $9 million (1% margin).

• Free cash flow was $291 million in Q4 (31% margin); fiscal year free cash flow was $915 million.

• Cash, cash equivalents, and marketable securities totaled $4.47 billion at year-end.

• Fiscal year revenue was $3.43 billion, up 28% year-over-year.

Outlook and guidance

• Q1 2026 revenue expected between $951–$961 million, representing 25–26% year-over-year growth.

• Q1 non-GAAP operating income expected at $195–$205 million (21% margin); EPS $0.49–$0.51.

• FY 2026 revenue guidance is $4.06–$4.1 billion (18–20% growth); non-GAAP operating income $840–$880 million (21% margin); EPS $2.08–$2.16.

• Guidance assumes core business (excluding largest customer) grows at least 20%.

• Capex and capitalized software expected at 4–5% of revenue in 2026.