Datadog IncLargest customer reduced usage, weighing on Q2 and guidance.

Datadog reported second-quarter 2026 revenue of $1.12 billion, up 35.6% year on year and above market expectations, while non-GAAP earnings per share of $0.65 beat consensus by 11.4%. The company issued next-quarter revenue guidance of $1.14 billion at the midpoint, 2.9% ahead of analyst estimates, and raised its full-year outlook. Despite the beats, shares fell sharply after management disclosed that a usage reduction by its largest customer weighed on the quarter and was factored into the forecast. CEO Olivier Pomel highlighted accelerating growth among both AI-native and traditional customers, with over 750 AI customers now on the platform, while CFO David Obstler said guidance reflects a conservative approach following a recent renewal with that top customer at lower usage levels.
Datadog IncLargest customer reduced usage, weighing on Q2 and guidance.