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 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+ ARR, accounting for 90% of ARR and up 19% year-over-year.

• Over 400 new features and capabilities launched in 2025, including major AI-driven products and security tools.

• 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.

• 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 (27% margin).

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

• Billings were $1.21 billion, up 34% year-over-year; RPO was $3.46 billion, up 52%.

Outlook and guidance

• Q1 2026 revenue guidance: $951–$961 million (25–26% year-over-year growth); non-GAAP operating income: $195–$205 million (21% margin).

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

• Non-GAAP EPS expected at $2.08–$2.16 for FY 2026.

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

• Announced 2026 Investor Day event.