DDOG 4Q25: Core Business Continues to Accelerate, 2026 Revenue Guidance Better Than Feared

DDOG delivered another solid quarter, with 4Q revenue and 1Q guidance both exceeding expectations, driven by continued acceleration in core (non-AI) revenue. The most closely watched FY26 revenue guidance was slightly better than feared, though operating margin guidance was weaker. Overall, core cohort growth proved stronger than we previously anticipated, partially offsetting pressure on 2026 revenue growth from OpenAI optimization. Against the backdrop of extremely bearish SaaS sentiment, these results should help DDOG (and other Infrastructure SaaS companies) regain market attention, rather than suffering indiscriminate sell-offs alongside Application SaaS peers. The company will hold an Investor Day on February 12, during which we expect more details on its AI product strategy.

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Results Review: Core Continues to Accelerate with Momentum Extending into 1Q26