Datadog Stock Has Nearly Doubled This Year, but Wall Street Sees Only About 7% More Upside

Key Takeaways

• Datadog closed at $268.56 on September 29, up nearly 100% for the year and about 8% below its 52-week high of $292.72.
• Consensus expects revenue to grow around 30% this year to about $4.5 billion, and cash from operations already passed $1 billion in fiscal 2025.
• The Street’s mean target of around $286 implies only around 7% upside after this year’s run.
• The next quarterly report will show whether growth can keep pace with a valuation near 100 times forward earnings.

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Revenue Is Growing Near 30% a Year

Datadog (DDOG) runs an observability and security platform that monitors infrastructure, applications and AI workloads.

Revenue has more than tripled since fiscal 2021, from $1.03 billion to $3.43 billion in fiscal 2025, and grew 28% last year. The chart below adds consensus estimates through fiscal 2030.

Analysts expect revenue near $4.5 billion this year, up around 30%, and around $9.4 billion by fiscal 2030, close to triple the fiscal 2025 level. Datadog’s own guidance lines up: full-year revenue of $4.45 billion to $4.47 billion, after a second quarter of $1.12 billion that was up 36% from a year earlier.

Consensus has revenue growing around 26% a year over the next two years, with earnings up around 20% and EBITDA around 32%.

Because EBITDA is expected to grow fastest, analysts appear to be building in wider margins as the company gets bigger.

Cash Flow Is Strong, but GAAP Profit Is Thin

Cash flow has grown faster than sales. Cash from operations rose from $287 million in fiscal 2021 to $1.05 billion in fiscal 2025, about 31% of that year’s revenue, and the chart below shows the climb. Growth slowed to 21% in fiscal 2025, though on a much larger base.

GAAP profit looks nothing like the cash flow. In the second quarter, operating income was $5 million, a margin of effectively zero, while the non-GAAP operating margin was 23%. With gross margin around 80%, the gap between gross and operating profit comes from what Datadog spends to run and grow the business.

On TIKR’s numbers, trailing EBIT margin is 0.5%, which is why earnings-based multiples run high.

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Should You Buy Datadog Stock?

The shares have climbed from $135.99 at the end of 2025 to $268.56, and analyst targets have risen with them. TIKR’s Street Targets table shows the mean target climbing from around $139 in mid-2025 to around $286 today, with 41 of 46 analysts at Buy or Outperform and only two at Underperform or Sell.

At roughly $96.5 billion, the market value is around 19 times next year’s revenue.

The bull case rests on growth: revenue that could roughly triple by 2030 and more than $1 billion in annual cash from operations. Analysts are almost uniformly positive, and net cash of about $3.7 billion adds a cushion.

The bear case starts with price. The mean target is only around 7% above the current price, the forward P/E is near 100, and the lowest target, $158, sits about 41% below the stock.

A GAAP operating margin near zero leaves little room for slower growth, and a beta near 1.5 means the shares tend to move more than the market.

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So what is Datadog stock actually worth?

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!