← Datadog overview

Datadog vs Elastic NV: why the prices moved differently

Weekly · monthly · quarterly news summaries, side by side in time

Datadog Inc (DDOG)

Q3 2026
▲2▼2

Datadog Q2 beat but largest customer cut usage, slowing growth

  • Q2 revenue up 36% with raised outlook Datadog's Q2 revenue rose 36% to $1.12 billion, with a raised full-year outlook, 23% operating margin, and free cash flow up to $279 million. This shows the business is still growing fast and generating cash.

    It highlights the strong fundamental performance that supported the stock during the quarter.

  • Customers bundle more products and AI monitoring monetizes More customers are bundling Datadog products: 58% now use four or more, up from 56% last quarter. Large deals doubled, and AI-agent monitoring is starting to bring in revenue. This shows the strategy is working.

    It shows progress in selling more to existing customers and new AI products, a key growth driver.

  • Largest customer cut usage, causing sell-off Datadog's largest customer reduced its usage, which was the main cause of a sharp stock sell-off. Management says the impact is fully baked into guidance, but it highlights the risk of relying on a few big customers.

    It was the most notable negative event that drove the stock down during the quarter.

  • Downgrade and slowing growth expectations Bernstein downgraded the stock on fears that growth has peaked. Q3 guidance implied just 1.8% sequential growth, adjusted gross margin slightly missed consensus, and spending intentions weakened. These factors weighed on the stock.

    It captures the analyst downgrade and slowing momentum that pressured the stock.

September 2026
▲3

Datadog's AI-era demand broadens as big customers spend more

  • Customers stack more Datadog products More customers are buying several Datadog tools at once: 58% now use at least four products, up from 52% a year ago, and a media company signed a deal worth over $30 million. Selling more to each customer lifts revenue without needing as many new customers.

    Shows the demand engine behind Datadog's growth, a core reason the stock can keep rising.

  • AI-agent monitoring starts making money Datadog says thousands of customers now pay for tools that watch AI agents, a brand-new market it is racing Dynatrace to own. If AI creates more software activity to monitor, that expands Datadog's long-term sales opportunity.

    A new growth market is the biggest long-term driver of whether Datadog's revenue keeps compounding.

  • Big enterprise deals and profits both grow New large-customer bookings more than doubled, customers spending $100,000+ a year rose 23% to about 4,720, and over 750 AI-native firms now use Datadog. Revenue grew 36% to $1.12 billion, with free cash flow up to $279 million from $165 million.

    Confirms Datadog is winning bigger contracts while also becoming more profitable, which supports the share price.

  • One giant customer cut usage, guidance absorbs it Datadog's single largest customer reduced how much it uses, which hurt the quarter and was the main reason the stock fell despite beating forecasts. Management says the cut is fully baked into guidance, so the risk is known but not gone.

    The main counterweight to the growth story and the reason a strong quarter still disappointed investors.

Latest
▲3

Datadog's AI-era demand broadens as big customers spend more

  • Customers stack more Datadog products More customers are buying several Datadog tools at once: 58% now use at least four products, up from 52% a year ago, and a media company signed a deal worth over $30 million. Selling more to each customer lifts revenue without needing as many new customers.

    Shows the demand engine behind Datadog's growth, a core reason the stock can keep rising.

  • AI-agent monitoring starts making money Datadog says thousands of customers now pay for tools that watch AI agents, a brand-new market it is racing Dynatrace to own. If AI creates more software activity to monitor, that expands Datadog's long-term sales opportunity.

    A new growth market is the biggest long-term driver of whether Datadog's revenue keeps compounding.

  • Big enterprise deals and profits both grow New large-customer bookings more than doubled, customers spending $100,000+ a year rose 23% to about 4,720, and over 750 AI-native firms now use Datadog. Revenue grew 36% to $1.12 billion, with free cash flow up to $279 million from $165 million.

    Confirms Datadog is winning bigger contracts while also becoming more profitable, which supports the share price.

  • One giant customer cut usage, guidance absorbs it Datadog's single largest customer reduced how much it uses, which hurt the quarter and was the main reason the stock fell despite beating forecasts. Management says the cut is fully baked into guidance, so the risk is known but not gone.

    The main counterweight to the growth story and the reason a strong quarter still disappointed investors.

August 2026
▼3▲1

Datadog Q2 beat but weak Q3 guide and margin miss sink stock

  • Q3 revenue guidance implies only 1.8% sequential growth Datadog beat Q2 estimates with 36% revenue growth to $1.12 billion, but its Q3 guidance of $1.135–$1.145 billion implies just 1.8% sequential growth. Investors had priced in faster AI-driven expansion, so the slowdown signal pushed the stock down sharply.

    This is the main new negative driver behind the stock's 15% drop this period.

  • Adjusted gross margin slightly below consensus Datadog reported an adjusted gross margin of 80%, just below the 80.7% consensus. While small, the miss added to concerns about cost pressures and profitability, contributing to the sell-off in software stocks.

    This is a new negative factor that weighed on the stock this period.

  • Usage reduction from largest customer Datadog noted a usage reduction from its largest customer, which was incorporated into guidance. This raises concerns about customer concentration and the sustainability of AI-driven spending, adding to the cautious outlook.

    This is a new disclosure that explains part of the guidance slowdown and investor worry.

  • Strong Q2 results and raised full-year outlook Datadog's Q2 revenue rose 36% to $1.12 billion, beating guidance, with operating margin of 23% and free cash flow of $279 million. The company raised its full-year 2026 revenue outlook to $4.45–$4.47 billion, showing the business remains fundamentally strong.

    This is the positive counterweight showing the underlying business is still growing well.

▼3▲1

Datadog Q2 beat but weak Q3 guide and margin miss sink stock

  • Q3 revenue guidance implies only 1.8% sequential growth Datadog beat Q2 estimates with 36% revenue growth to $1.12 billion, but its Q3 guidance of $1.135–$1.145 billion implies just 1.8% sequential growth. Investors had priced in faster AI-driven expansion, so the slowdown signal pushed the stock down sharply.

    This is the main new negative driver behind the stock's 15% drop this period.

  • Adjusted gross margin slightly below consensus Datadog reported an adjusted gross margin of 80%, just below the 80.7% consensus. While small, the miss added to concerns about cost pressures and profitability, contributing to the sell-off in software stocks.

    This is a new negative factor that weighed on the stock this period.

  • Usage reduction from largest customer Datadog noted a usage reduction from its largest customer, which was incorporated into guidance. This raises concerns about customer concentration and the sustainability of AI-driven spending, adding to the cautious outlook.

    This is a new disclosure that explains part of the guidance slowdown and investor worry.

  • Strong Q2 results and raised full-year outlook Datadog's Q2 revenue rose 36% to $1.12 billion, beating guidance, with operating margin of 23% and free cash flow of $279 million. The company raised its full-year 2026 revenue outlook to $4.45–$4.47 billion, showing the business remains fundamentally strong.

    This is the positive counterweight showing the underlying business is still growing well.

July 2026
▲2▼1

Datadog's AI push and strong sales offset cautious analyst and spending signals

  • Bernstein downgrade on growth peak fears Bernstein downgraded Datadog to market-perform, warning that upcoming earnings face tough comparisons and non-AI growth may have peaked. This cautious view can weigh on the stock as investors worry about slowing momentum.

    A fresh analyst downgrade directly affects sentiment and is a new negative driver.

  • Adaptive ML acquisition and Street-high price target Datadog acquired Adaptive ML to boost AI research for observability, and Benchmark raised its price target to a Street-high $330, citing strong execution. This reinforces the AI growth story and supports a higher stock price.

    The acquisition and bullish analyst action are new positive catalysts for the period.

  • Eight straight quarters of revenue growth Datadog posted its eighth consecutive quarter of sequential revenue growth, with Q1 2026 revenue up 32% year over year. This steady demand shows the business is still expanding, which can lift the stock.

    The streak of growth is a new data point confirming demand strength.

  • Strong Q2 sales but weakening spending intentions A BNP survey found Datadog sales beat plan in Q2, driven by infrastructure monitoring, APM, and AI. However, customers' spending intentions for the next three months fell sharply, signaling possible slowdown ahead.

    This survey gives a fresh, balanced view of current demand versus future risk.

▲2▼1

Datadog's AI push and strong sales offset cautious analyst and spending signals

  • Bernstein downgrade on growth peak fears Bernstein downgraded Datadog to market-perform, warning that upcoming earnings face tough comparisons and non-AI growth may have peaked. This cautious view can weigh on the stock as investors worry about slowing momentum.

    A fresh analyst downgrade directly affects sentiment and is a new negative driver.

  • Adaptive ML acquisition and Street-high price target Datadog acquired Adaptive ML to boost AI research for observability, and Benchmark raised its price target to a Street-high $330, citing strong execution. This reinforces the AI growth story and supports a higher stock price.

    The acquisition and bullish analyst action are new positive catalysts for the period.

  • Eight straight quarters of revenue growth Datadog posted its eighth consecutive quarter of sequential revenue growth, with Q1 2026 revenue up 32% year over year. This steady demand shows the business is still expanding, which can lift the stock.

    The streak of growth is a new data point confirming demand strength.

  • Strong Q2 sales but weakening spending intentions A BNP survey found Datadog sales beat plan in Q2, driven by infrastructure monitoring, APM, and AI. However, customers' spending intentions for the next three months fell sharply, signaling possible slowdown ahead.

    This survey gives a fresh, balanced view of current demand versus future risk.

Q2 2026
▲3

Datadog's strong demand and AI acquisition offset rising competition

  • Record Q1 revenue and customer growth Datadog reported Q1 revenue of $1.01 billion, up 32.2% year over year and beating estimates by 4.9%. It added 240 large enterprise customers, bringing the total to 4,550. This shows strong demand for its monitoring tools, which supports a higher stock price.

    This is a new earnings report that directly shows Datadog's financial strength and growth.

  • Backlog surges 51% to $3.48 billion Remaining performance obligations, a measure of future contracted revenue, jumped 51% to $3.48 billion. This was driven by more multi-year deals and record new customer signings. A growing backlog gives confidence in future revenue and can push the stock up.

    This forward-looking metric signals accelerating demand and is new information from the latest quarter.

  • Multi-product adoption and raised guidance More customers are using multiple Datadog products: 56% use four or more, up from 51% a year ago. Annual recurring revenue passed $4 billion, and the company raised its 2026 revenue guidance to $4.30–$4.34 billion, implying 25–27% growth. This shows the strategy is working and supports a higher valuation.

    This new update on product adoption and guidance directly affects growth expectations and stock price.

  • AI acquisition and rising competition Datadog acquired AI startup Adaptive ML, which could enhance its AI monitoring capabilities and lifted the stock over 2%. However, Elastic launched new observability features with automated migration tools from Datadog, directly targeting its customers. This competitive threat could pressure future growth and the stock price.

    These are new events that show both a positive strategic move and a negative competitive development.

June 2026
▲3

Datadog's strong demand and AI acquisition offset rising competition

  • Record Q1 revenue and customer growth Datadog reported Q1 revenue of $1.01 billion, up 32.2% year over year and beating estimates by 4.9%. It added 240 large enterprise customers, bringing the total to 4,550. This shows strong demand for its monitoring tools, which supports a higher stock price.

    This is a new earnings report that directly shows Datadog's financial strength and growth.

  • Backlog surges 51% to $3.48 billion Remaining performance obligations, a measure of future contracted revenue, jumped 51% to $3.48 billion. This was driven by more multi-year deals and record new customer signings. A growing backlog gives confidence in future revenue and can push the stock up.

    This forward-looking metric signals accelerating demand and is new information from the latest quarter.

  • Multi-product adoption and raised guidance More customers are using multiple Datadog products: 56% use four or more, up from 51% a year ago. Annual recurring revenue passed $4 billion, and the company raised its 2026 revenue guidance to $4.30–$4.34 billion, implying 25–27% growth. This shows the strategy is working and supports a higher valuation.

    This new update on product adoption and guidance directly affects growth expectations and stock price.

  • AI acquisition and rising competition Datadog acquired AI startup Adaptive ML, which could enhance its AI monitoring capabilities and lifted the stock over 2%. However, Elastic launched new observability features with automated migration tools from Datadog, directly targeting its customers. This competitive threat could pressure future growth and the stock price.

    These are new events that show both a positive strategic move and a negative competitive development.

▲3

Datadog's strong demand and AI acquisition offset rising competition

  • Record Q1 revenue and customer growth Datadog reported Q1 revenue of $1.01 billion, up 32.2% year over year and beating estimates by 4.9%. It added 240 large enterprise customers, bringing the total to 4,550. This shows strong demand for its monitoring tools, which supports a higher stock price.

    This is a new earnings report that directly shows Datadog's financial strength and growth.

  • Backlog surges 51% to $3.48 billion Remaining performance obligations, a measure of future contracted revenue, jumped 51% to $3.48 billion. This was driven by more multi-year deals and record new customer signings. A growing backlog gives confidence in future revenue and can push the stock up.

    This forward-looking metric signals accelerating demand and is new information from the latest quarter.

  • Multi-product adoption and raised guidance More customers are using multiple Datadog products: 56% use four or more, up from 51% a year ago. Annual recurring revenue passed $4 billion, and the company raised its 2026 revenue guidance to $4.30–$4.34 billion, implying 25–27% growth. This shows the strategy is working and supports a higher valuation.

    This new update on product adoption and guidance directly affects growth expectations and stock price.

  • AI acquisition and rising competition Datadog acquired AI startup Adaptive ML, which could enhance its AI monitoring capabilities and lifted the stock over 2%. However, Elastic launched new observability features with automated migration tools from Datadog, directly targeting its customers. This competitive threat could pressure future growth and the stock price.

    These are new events that show both a positive strategic move and a negative competitive development.

Elastic NV (ESTC)

Q3 2026
▲3

Elastic surged on OpenAI partnership and raised guidance

  • OpenAI partnership Elastic became the retrieval and governance layer for OpenAI's reasoning models, a major validation that lifted shares 12.1% and positioned Elastic at the center of enterprise AI adoption.

    This was the key company-specific catalyst that drove the stock higher during the period.

  • Raised full-year guidance In late August, Elastic raised its full-year EPS outlook to $3.29–$3.37 and revenue to about $2.0B, beating estimates and sending shares up as much as 22%, with remaining performance obligations up 27%.

    The guidance raise was a direct, company-specific event that significantly boosted investor confidence and the stock price.

  • Product and platform expansion IDC SIEM leadership, top malware-protection scores, and an observability push with native Prometheus support and Datadog/Grafana migration tools broadened Elastic's platform and validated its security suite.

    These product milestones reinforced Elastic's competitive position and supported the positive narrative.

  • Macro and sector sentiment risk Despite strong company news, Elastic remains sensitive to macro mood, rate-hike fears, and AI-bubble sentiment; part of the rally reflected sector-wide enthusiasm rather than company-specific news.

    This counterweight explains that not all gains were driven by Elastic's own fundamentals, providing a balanced view.

August 2026
▲4

Elastic's raised guidance and AI-driven demand send shares sharply higher

  • Full-year guidance beats expectations Elastic reported first-quarter fiscal 2027 results and raised its full-year outlook, guiding adjusted EPS to $3.29-$3.37 and revenue to about $2.0 billion, both above analyst estimates. The stock surged as much as 22% as investors welcomed the stronger profit and sales forecast.

    This is the core new event that directly drove the stock's sharp move this period.

  • Strong demand across search, AI, and security Management said demand was strong in search, AI, and security, with remaining performance obligations (future contracted revenue) up 27% and current RPO up 21%. That signals customers are committing to more Elastic products, which supports future revenue growth and justifies the higher stock price.

    It explains the underlying business momentum behind the guidance raise, not just the headline numbers.

  • AI-driven rally lifts enterprise software peers Elastic rose alongside other enterprise software names like ServiceNow, Zscaler, and Salesforce as upbeat earnings showed AI is boosting, not hurting, established vendors. This sector-wide confidence added to Elastic's gains, though it also means part of the move reflects market mood rather than company-specific news.

    It shows the broader AI-driven demand trend that amplified Elastic's stock reaction.

  • Acquisition and board addition signal growth focus Elastic acquired Deductive AI and nominated Julia Liuson to its board. The acquisition expands its AI capabilities, while the board addition brings Microsoft executive experience. These moves support the company's AI and enterprise push, reinforcing the growth story behind the stock's rise.

    It highlights strategic actions that complement the earnings-driven rally and support future growth.

Latest
▲4

Elastic's raised guidance and AI-driven demand send shares sharply higher

  • Full-year guidance beats expectations Elastic reported first-quarter fiscal 2027 results and raised its full-year outlook, guiding adjusted EPS to $3.29-$3.37 and revenue to about $2.0 billion, both above analyst estimates. The stock surged as much as 22% as investors welcomed the stronger profit and sales forecast.

    This is the core new event that directly drove the stock's sharp move this period.

  • Strong demand across search, AI, and security Management said demand was strong in search, AI, and security, with remaining performance obligations (future contracted revenue) up 27% and current RPO up 21%. That signals customers are committing to more Elastic products, which supports future revenue growth and justifies the higher stock price.

    It explains the underlying business momentum behind the guidance raise, not just the headline numbers.

  • AI-driven rally lifts enterprise software peers Elastic rose alongside other enterprise software names like ServiceNow, Zscaler, and Salesforce as upbeat earnings showed AI is boosting, not hurting, established vendors. This sector-wide confidence added to Elastic's gains, though it also means part of the move reflects market mood rather than company-specific news.

    It shows the broader AI-driven demand trend that amplified Elastic's stock reaction.

  • Acquisition and board addition signal growth focus Elastic acquired Deductive AI and nominated Julia Liuson to its board. The acquisition expands its AI capabilities, while the board addition brings Microsoft executive experience. These moves support the company's AI and enterprise push, reinforcing the growth story behind the stock's rise.

    It highlights strategic actions that complement the earnings-driven rally and support future growth.

July 2026
▲3

Elastic's AI-security wins and OpenAI tie-up lift growth story

  • OpenAI partnership drives demand Elastic expanded its collaboration with OpenAI, becoming the retrieval and governance layer for OpenAI's reasoning models inside Elasticsearch. Shares jumped 12.1% on the news. This matters because it ties Elastic's core search technology to the biggest name in AI, potentially pulling in more enterprise customers.

    The single biggest price move this period and a clear new demand catalyst.

  • Security product wins validate platform Elastic was named a Leader in IDC's SIEM 2026 assessment and scored the only 100% malware protection result among 16 vendors in AV-Comparatives testing. Strong third-party validation supports the case that Elastic's security suite can win customers and defend pricing.

    Two independent product validations underpin the security growth narrative.

  • Observability push broadens the platform Elastic launched unified observability with native Prometheus support and migration tools from Datadog and Grafana, and was added to Russell value indices. If it wins observability budgets, revenue grows; the index addition raises institutional visibility.

    New product expansion and index inclusion are fresh catalysts for the bull case.

  • Rate and rotation worries cut both ways Hotter import prices and AI-bubble fears pushed investors out of high-multiple software names, dragging Elastic down 2.9% in mid-June. Later, US-Iran de-escalation eased rate-hike fears and lifted it 2.6%. These swings show Elastic remains sensitive to macro mood.

    The main counterweight: outside forces can still move the stock regardless of company progress.

▲3

Elastic's AI-security wins and OpenAI tie-up lift growth story

  • OpenAI partnership drives demand Elastic expanded its collaboration with OpenAI, becoming the retrieval and governance layer for OpenAI's reasoning models inside Elasticsearch. Shares jumped 12.1% on the news. This matters because it ties Elastic's core search technology to the biggest name in AI, potentially pulling in more enterprise customers.

    The single biggest price move this period and a clear new demand catalyst.

  • Security product wins validate platform Elastic was named a Leader in IDC's SIEM 2026 assessment and scored the only 100% malware protection result among 16 vendors in AV-Comparatives testing. Strong third-party validation supports the case that Elastic's security suite can win customers and defend pricing.

    Two independent product validations underpin the security growth narrative.

  • Observability push broadens the platform Elastic launched unified observability with native Prometheus support and migration tools from Datadog and Grafana, and was added to Russell value indices. If it wins observability budgets, revenue grows; the index addition raises institutional visibility.

    New product expansion and index inclusion are fresh catalysts for the bull case.

  • Rate and rotation worries cut both ways Hotter import prices and AI-bubble fears pushed investors out of high-multiple software names, dragging Elastic down 2.9% in mid-June. Later, US-Iran de-escalation eased rate-hike fears and lifted it 2.6%. These swings show Elastic remains sensitive to macro mood.

    The main counterweight: outside forces can still move the stock regardless of company progress.

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