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.”

Data labeling startups are turning small businesses into testing grounds for AI models that still struggle with common workplace tasks. Read more in today's AI Agenda newsletter:

Data Centers and AI is getting out of control. I created with Grok. The year is 2030. Governments want a New World Order. AI is now so advanced we cannot shut it down. It is embedded in most Windows systems collecting your data you do not know. Welcome to the new world

Data centers’ indirect water use—the water used at power plants that supply the electricity—can be far greater than the water used in the data centers themselves, writes Christopher @Mims