Review|DDOG 1Q26: Big Guidance Upside Surprise, No Growth Cliff Concern anymore
DDOG’s 1Q26 results met expectations, but 2Q26 and FY26 guidance were even stronger than our higher-than-consensus estimates, signaling sustained revenue growth in the mid-30s YoY for 2Q and low-to-mid 30s for FY26. This mitigates prior concerns about a growth cliff in 2H26 tied to OpenAI’s migration. Both non-AI and AI-native cohort momentum drove strength, with two hyperscalers adopting DDOG for their AI training, highlighting DDOG’s technological edge. These results reinforce its premium valuation among SaaS peers, supporting our preference for infrastructure SaaS.
