Datadog: Accelerating Revenue Momentum and Conservative Guidance Underpin Buy Rating

Analyst Mike Cikos of Needham maintained a Buy rating on Datadog, with a price target of $155.00.

Mike Cikos has given his Buy rating due to a combination of factors, starting with Datadog’s clear momentum in revenue growth, which has accelerated for three straight quarters and most recently came in well ahead of Wall Street’s expectations. He also highlights that the company’s 2026 revenue outlook, calling for roughly 19% year-over-year growth, is notably stronger than what many investors were anticipating, signaling durable demand for the platform.

Although Datadog’s initial operating income and EPS guidance is below consensus, Cikos interprets this as conservative management practice, noting the company’s history of converting revenue outperformance into even greater profit upside. He further underscores confidence by pointing to a significant new multi-year contract with a major AI model provider and management’s indication that, excluding one large AI-native client, the business is still poised to grow at 20% or more, reinforcing his positive stance on the shares.

Cikos covers the Technology sector, focusing on stocks such as MongoDB, ServiceNow, and Okta. According to TipRanks, Cikos has an average return of 6.8% and a 45.66% success rate on recommended stocks.

In another report released today, Monness also maintained a Buy rating on the stock with a $255.00 price target.