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    What Datadog (DDOG)'s AI Customer Growth Means For Shareholders

    Simply Wall St·09/26/2026 15:19:30
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    • Datadog has drawn fresh attention as investors focus on its expanding observability and security platform, its growing AI customer base, and its broader international reach across EMEA, APAC, and Latin America.
    • The use of Datadog by more than 750 AI customers, including all 10 top AI leaders, highlights how complex AI workloads are becoming a core driver of demand for its monitoring and security products.
    • We will now explore how Datadog's AI-focused customer momentum could reshape its investment narrative for long-term platform adoption.

    Scan beyond Datadog and line up other potential AI infrastructure winners with the hand-picked 87 AI infrastructure stocks that are already positioned for heavy data, GPU and observability workloads.

    Datadog Investment Narrative Recap

    To own Datadog, you need to believe the business can keep turning complex cloud and AI workloads into deeper platform usage, without letting a few very large customers dictate the revenue trend. Recent attention on earnings estimates and the stock’s strong run does not change the near term reality that guidance and usage patterns at big accounts remain the key swing factors.

    The main upside catalyst still sits in higher spend per AI and observability customer as more products are adopted across geographies. The biggest near term risk remains any further cooling in usage or conservative outlook updates, especially with recent insider selling and a rich P/S multiple already in focus for many investors.

    The most relevant recent datapoint is Datadog’s traction with over 750 AI customers, including all 10 of the top AI leaders, and new use cases such as GPU monitoring, Agent Observability, AI Guard and Bits AI. This cluster of AI workloads is where incremental demand for observability and security could build over time if execution stays tight.

    For you as a shareholder, that AI footprint interacts directly with both the catalyst and the risk. Strong usage from these demanding clients can offset optimization at a nine figure customer and help international expansion in EMEA, APAC and Latin America. If those AI driven workloads plateau or fragment across multiple tools instead, the story around platform consolidation and long term margin improvement becomes harder to defend.

    Datadog's current consensus narrative points to revenues of US$7.7b and earnings of US$780.0m by 2029, based on analyst assumptions of 24.5% yearly revenue growth and an earnings increase of about US$602.4m from US$177.6m today.

    Uncover how Datadog's fair value indicates a 6% potential upside to its current price, which could close quickly if sentiment stays supportive.

    NasdaqGS:DDOG 1-Year Stock Price Chart
    NasdaqGS:DDOG 1-Year Stock Price Chart

    Exploring Other Perspectives

    For a contrasting angle, focus on Datadog’s international expansion risk. The most bearish analysts worry that rising compliance costs and data residency rules could slow global momentum. They were modeling US$6.7b of revenue and US$360.7m of earnings by 2029, far below consensus, so their story may shift meaningfully after this latest news.

    Explore 4 other Datadog fair value estimates, including one that suggests as much as 17% downside from the current price.

    Reach Your Own Conclusion

    Don't just follow the ticker. Dig into the data and build a conviction that's truly your own.

    Looking for more investment ideas beyond Datadog?

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.