Rosenblatt cuts Datadog stock price target on renewal headwinds

Rosenblatt has reduced its price target for Datadog shares (NASDAQ:DDOG) to $285 from $305 while maintaining a Buy rating. The analyst noted that Datadog reported third-quarter revenue growth of 35%, exceeding expectations, and highlighted strong non-AI customer growth and impressive gross profit margins of 79.5%. However, the company's fourth-quarter revenue outlook of $1.19 billion to $1.2 billion, representing 25% to 26% year-over-year growth, was impacted by near-term headwinds from several large early renewals with higher commitments but better pricing. Despite this, Datadog raised its fiscal 2026 revenue guidance by approximately 1% to roughly 32%.

Brief written by urgent.news from Investing.com's own syndicated text. Machine-written — may contain errors; check the original before relying on it.