Datadog's largest customer, widely believed to be OpenAI, recently renewed a nine-figure contract across 17 products. However, they've reduced usage starting in Q3 which is large enough to impact Datadog's guidance for the year

DATADOG $DDOG Q2’26 EARNINGS HIGHLIGHTS 🔹 Revenue: $1.12B (Est. $1.08B) 🟢; +36% YoY 🔹 Adj. EPS: $0.65 (Est. $0.59) 🟢; +41% YoY 🔹 Customers with ARR >$100k: ~4,720 (Est. 4.6K) 🟢; +23% YoY FY26 Guide: 🔹 Revenue: $4.45B-$4.47B (Est. $4.35B) 🟢 🔹 Operating Income: $1.01B-$1.03B (Est. $976M) 🟢 🔹 Adj. EPS: $2.50-$2.54 (Est. $2.42) 🟢 Q3 Guide: 🔹 Revenue: $1.14B-$1.15B (Est. $1.11B) 🟢 🔹 Operating Income: $260M-$270M (Est. $253M) 🟢 🔹 Adj. EPS: $0.63-$0.65 (Est. $0.62) 🟢 Other Q2 Metrics: 🔹 Free Cash Flow: $279M (Est. $212M) 🟢 🔹 Operating Cash Flow: $316M 🔹 Non-GAAP Operating Income: $257M (Est. $233M) 🟢 🔹 Non-GAAP Operating Margin: 23%; +300 bps YoY 🔹 Free Cash Flow Margin: 25%; +500 bps YoY 🔹 Cash, Cash Equivalents & Marketable Securities: $5.0B 🔹 Launched: AI-powered Bits Code, Bits Chat, and Bits Agent Builder for general availability 🔹 Acquired: Adaptive ML, a frontier AI startup developing the world's first Reinforcement Learning Operations platform Comments: 🔸 “Datadog delivered a strong quarter, with 36% year-over-year revenue growth, $316 million in operating cash flow, and $279 million in free cash flow,” 🔸 “Our customers are building and deploying with AI, and they are using the Datadog platform to observe, secure, and act on their AI-enabled solutions.”

HERE'S WHAT THE 🇺🇸 STOCK MARKET LOOKED LIKE TODAY Up 8: Datadog $DDOG +6.6% Ciena $CIEN +5.7% Dell $DELL +5.3% CrowdStrike $CRWD +5.3% Palantir $PLTR +4.7% Danaher $DHR +4.3% GE Vernova $GEV +4.0% IBM $IBM +3.9% Down 8: AT&T $T -6.5% Netflix $NFLX -5.3% Booking Holdings $BKNG -3.4% American Tower $AMT -3.2% T-Mobile $TMUS -2.5% Boston Scientific $BSX -2.3% Intuitive Surgical $ISRG -2.3% Stryker $SYK -2.2% Tech led the market, with 42 of 48 names in the sector finishing higher. Chips bounced back, with AMD $AMD +3.4%, Nvidia $NVDA +2.5% and Micron $MU +2.0%, and Tesla $TSLA rose +3.4% ahead of its earnings report after the close. Telecom went the other way. AT&T fell after its earnings report and pulled Verizon $VZ -2.2% and T-Mobile down with it. Netflix slid after last night's results, and medical device makers like Boston Scientific, Intuitive Surgical and Stryker also had a rough day.

# Practical ways to use the Claude Agent SDK 📊 Visualize all agent activity in Datadog, Grafana, or Langfuse with OpenTelemetry. OpenTelemetry Observability exports agent traces, metrics, and logs via OTLP to external monitoring tools. 📌 Title: Observability with OpenTelemetry 🔗 URL: 🧩 Overview Enable with `CLAUDE_CODE_ENABLE_TELEMETRY=1` to export traces, metrics, and logs via OTLP to Honeycomb, Datadog, Grafana, Langfuse, and more. W3C trace context propagation automatically links agent traces to your application traces. 🛠 How to use it ```bash export CLAUDE_CODE_ENABLE_TELEMETRY=1 export CLAUDE_CODE_ENHANCED_TELEMETRY_BETA=1 export OTEL_EXPORTER_OTLP_ENDPOINT=https://your-collector:4318 ``` 🏗 Practical usage - Monitor "which tools were called, how long each took, how many tokens were used, and where failures occurred" in a single Datadog dashboard. - Get `claude_code.interaction` / `llm_request` / `tool` / `hook` spans with enhanced telemetry to visualize entire sub-agent delegation chains in one trace. - Inject ` / ` via `OTEL_RESOURCE_ATTRIBUTES` to build per-user audit trails and forward to SIEM. 💡 Use cases 🔍 Detailed trace analysis of agent execution 👥 Per-user audit trails 🚨 Bottleneck identification during failures ⚠️ Watch out The `console` exporter conflicts with the SDK's message channel — don't use it. For short-lived processes, shorten `OTEL_*_EXPORT_INTERVAL` to prevent missed flushes. #ClaudeAgentSDK# #AI#

Interesting to see SaaS companies starting to report MCP usage on earnings calls: - Datadog: MCP tool calls up 4x q/q, 22x since Q4 2025 - Figma: MCP write usage up 75% q/q - Atlassian: MCP calls up 400% q/q

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