Datadog, Inc. (DDOG) Announced Q1 2026 Earnings on May 7, 2026, Reporting Q1 revenue was $1.01 billion, up 32% year-over-year.

Datadog reported its first quarter 2026 financial results, achieving revenue of $1.01 billion for the quarter, an increase of 32% year-over-year.The company generated free cash flow of $289 million for the quarter with a free cash flow margin of 29%.First quarter gross profit was $807 million with a gross margin of 80.2%, and first quarter operating income was $223 million for a 22% operating margin.Management noted that the 6% quarter-over-quarter revenue growth is the highest for a first quarter since 2022.Chief Executive Officer Olivier Pomel explained the company is framing its artificial intelligence efforts in two buckets: "AI for Datadog and Datadog for AI". The company highlighted broad-based acceleration of revenue growth across both AI and non-AI customer cohorts.Furthermore, Datadog's platform strategy continues to gain traction, with management stating that 56% of customers now use 4 or more products, and 20% of customers use 8 or more products.The company also announced it received FedRAMP High certification from the U.S. federal government and plans to launch its next data center in the U.K..During the quarter, Datadog launched its MCP server for general availability, shipped Bits Assistant in preview, and delivered the Bits AI Security Agent, which management claims reduces investigations that could take hours to as little as 30 seconds. To support the growing AI landscape, the company also launched GPU monitoring to help teams understand GPU fleet utilization, workload efficiency, thermal and power behavior and interconnect performance.The company highlighted landing 7-figure and 8-figure annualized deals with the AI research divisions of two of the world's largest technology companies, helping them optimize their hyperscale AI training workloads using GPU monitoring.For the second quarter of 2026, Datadog expects revenues to be in the range of $1.07 billion to $1.08 billion, which represents a 29% to 31% year-over-year growth.Second quarter non-GAAP operating income is expected to be in the range of $225 million to $235 million.For the full fiscal year 2026, the company expects revenues to be in the range of $4.3 billion to $4.34 billion, with non-GAAP operating income expected to be in the range of $940 million to $980 million.Chief Financial Officer David Obstler noted that they "are applying a higher degree of conservatism to our largest customer" in their guidance philosophy.