DDOG

Cloud observability SaaS leader. Q1 2026 revenue $1.01B (+32% YoY) beat $959M est; FY26 guide raised to $4.32B midpoint (+$240M from prior); +29% post-print pop. AI-native customer cohort and Bits AI agent suite offset OpenAI (~10% of revenue) optimization migration tracking to Q4 2026.

• •2026-05-07 — Q1 2026 print: revenue $1.01B (+32.2% YoY) vs $959.6M est, adj EPS $0.60 vs $0.51 est, OCF $335M, FCF $289M
• •2026-05-07 — FY2026 guide raised to $4.30-4.34B (from $4.06-4.10B prior), 25-27% growth, non-GAAP op-income $940-980M (22-23% margin)
• •2026-05-07 — Q2 2026 guide $1.07-1.08B (29-31% YoY); record sequential ARR additions; AI-native cohort grew above plan
• •2025-12 — Bits AI SRE launched at DASH conference (Limited Availability); AI agent investigates alerts and surfaces root cause autonomously
• •2025-06 — Three Bits AI agents introduced (SRE, Dev, Security Analyst); autonomous investigation, code fixes, Cloud SIEM triage
• •OpenAI = largest single customer at ~10% of revenue per analyst estimates; full migration off DDOG expected ~Q4 2026
• •2025-07 — Guggenheim downgraded to Sell pre-print citing OpenAI optimization risk; thesis re-rated on Q1 print
• •Snapshot 2026-05-07: price ~$189, mcap ~$64B, FY26 guide $4.32B → forward P/S ~15x; +29% post-print + 4.9% intraday follow-through
• •Setup tension: AI workload observability TAM growth (32% YoY revenue) outpacing largest-customer optimization drag; bear thesis priced Q4-Q1, bull thesis (AI-native cohort + Bits AI monetization) reaccelerating