Datadog, Inc.

(NASDAQ Global Select)
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Bullish +65

RBC raises target for Datadog stock to USD 320.00

Analyst upgrade AI-generated analysis

📈 RBC Capital raised its price target for Datadog to USD 320.00, a 14.29% increase from USD 280.00, while retaining an Outperform rating.

💰 Second-quarter revenue reached USD 1.12 billion, marking a robust 36.00% year-over-year growth.

📅 Analyst Yorkville Ives initiated coverage with a USD 335.00 target and an Outperform rating on October 7, 2026.

🔮 RBC expects third-quarter revenue growth to reach 34.00% to 35.00%, slightly below the actual Q2 performance.

⚠️ Management noted a decline in usage from its largest customer during the third quarter, impacting guidance expectations.

📊 Datadog is guided to report third-quarter revenue between USD 1.135 billion and USD 1.145 billion on November 5, 2026.

💹 The stock traded at EUR 254.25 on October 14, 2026, with a market cap of USD 100.9 billion as of October 13, 2026.

🚀 Company continues to highlight broader demand and AI adoption as primary drivers for future growth despite concentration risks.

Bullish Signals
  • RBC Capital raised its price target to USD 320.00, a significant 14.29% increase from the previous USD 280.00 level.
  • The company delivered exceptional second-quarter revenue of USD 1.12 billion, growing 36.00% year over year.
  • Analyst Yorkville Ives initiated coverage with a high price target of USD 335.00 and an Outperform rating.
  • RBC expects third-quarter revenue growth to remain strong at 34.00% to 35.00%, validating the company's execution.
  • Management continues to cite broader market demand and AI adoption as key strategic growth drivers.
Risk Factors
  • Usage from the company's largest customer declined in the third quarter, introducing a specific concentration risk to revenue growth.
  • RBC's revised target of USD 320.00 is lower than the USD 335.00 target set by initiating analyst Yorkville Ives.
Full Analysis
RBC Capital Management raised its price target for Datadog (DDOG) to USD 320.00 on October 12, 2026, increasing the valuation by 14.29% from the previous level of USD 280.00 while maintaining an Outperform rating. This adjustment follows strong second-quarter execution where the company reported revenue of USD 1.12 billion, representing a 36.00% year-over-year increase. Analyst Yorkville Ives initiated coverage shortly after with a higher target of USD 335.00, though RBC's revised estimate remains slightly lower than the initiation level. RBC expects third-quarter revenue growth to range between 34.00% and 35.00%, which aligns closely with the company's actual second-quarter performance of 36.00%. Datadog is scheduled to report its third-quarter results on November 5, 2026, with a revenue guidance range of USD 1.135 billion to USD 1.145 billion. Management noted that usage from its largest customer declined in the third quarter, a factor incorporated into their guidance, though they continue to cite broader demand and AI adoption as key growth drivers. The stock was trading at EUR 254.25 on October 14, 2026, with a market capitalization of approximately USD 100.9 billion as of October 13, 2026. The upcoming earnings report will be central to the ongoing valuation debate given the high growth expectations set by both management and analysts.