Filing Flows › Datadog (DDOG) › How it makes money
How Datadog (DDOG) makes money
Datadog (DDOG) made $1.2B of revenue in the third quarter 2026 (Q3 2026), +35% from a year earlier. Of every dollar of revenue, 80¢ was left as gross profit, 6¢ was left as operating profit, 10¢ was left as net earnings.
Drawing the Sankey…
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $1.2B | 100.0% |
| Cost of revenue | $237M | 19.8% |
| Gross profit | $960M | 80.2% |
| Operating expenses | $885M | 73.9% |
| Operating profit | $74.7M | 6.2% |
| Income tax | $6.3M | 0.5% |
| Net earnings | $118M | 9.9% |
| Operating cash flow | $290M | 24.2% |
| Free cash flow | $251M | 20.9% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $1.2B | +35% |
| Q2 2026 | $1.1B | +36% |
| Q1 2026 | $1.0B | +32% |
| Q4 2025 | $953M | +29% |
| Q3 2025 | $886M | +28% |
| Q2 2025 | $827M | +28% |
| Q1 2025 | $762M | +25% |
From Datadog's 10-Q filed Nov 4, 2026 (on EDGAR).
Questions
How does Datadog make money?
Datadog (DDOG) made $1.2B of revenue in the third quarter 2026 (Q3 2026), +35% from a year earlier. Of every dollar of revenue, 80¢ was left as gross profit, 6¢ was left as operating profit, 10¢ was left as net earnings.
What is Datadog's profit margin?
Net earnings were $118M, 9.9% of revenue, in the third quarter 2026; the operating margin was 6.2%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.