Datadog reported Nov. 4, 2026, that third-quarter revenue rose 35% to $1.20 billion as its base of larger customers expanded. The monitoring and security software company’s results provide a fresh measure of enterprise spending on the systems used to manage cloud applications.
For the quarter ended Sept. 30, GAAP operating income was approximately $75 million, representing a 6% margin. Non-GAAP operating income was $334 million, with a 28% margin. The adjusted measure excludes expenses including stock-based compensation; it should not be read as interchangeable with GAAP profit.
Larger accounts expand
Datadog counted about 4,860 customers with annual recurring revenue of at least $100,000, compared with approximately 4,060 a year earlier. That measures a particular customer cohort, not the size of the company’s entire customer base.
AP also reported the quarterly revenue and net income of $118.3 million, equivalent to 32 cents per diluted share under GAAP.
The company generated $290 million in operating cash flow and $251 million in free cash flow during the quarter.
Forecasts remain separate from results
Datadog expects fourth-quarter revenue of $1.19 billion to $1.20 billion. That range is management’s outlook, not revenue already earned.
For enterprise buyers and software partners, the report offers evidence of a growing larger-account business. It does not establish which individual workloads drove that expansion or how much value customers realized. The commercial assessment still depends on adoption within accounts, service requirements and the costs of supporting those workloads.