Datadog (DDOG) is positioned for solid fiscal Q1 2026 results, with about 3% upside to consensus revenue estimates driven by steady core demand and continued enterprise adoption, Oppenheimer said in a Wednesday note.
The analysts' revenue expectation is driven by steady core demand and only a modest impact from its largest customer, OpenAI, which lessens the risk if some of that workload is shifted to competitors.
The analysts highlighted Datadog's expanding base of around 650 AI-native customers, including Anthropic, alongside international growth and new products in areas such as Flex Logs and Cloud SIEM.
Datadog's growth outlook is underpinned by ongoing enterprise adoption, expanding channel partnerships, and rising demand for AI and observability solutions that monitor system performance, with further upside expected from emerging AI workloads and continued product innovation, the report added.
Oppenheimer maintained its outperform rating on the stock with a price target of $200.
Shares of Datadog were up 1.9% in Wednesday trading.
Price: $130.77, Change: $+1.47, Percent Change: +1.14%