Bernstein raises Datadog stock price target to $147 on strong Q2 results

Published 08/08/2025, 14:24
Bernstein raises Datadog stock price target to $147 on strong Q2 results

Investing.com - Bernstein has raised its price target on Datadog (NASDAQ:DDOG) to $147.00 from $145.00 while maintaining an Outperform rating following the company’s second-quarter 2025 results. According to InvestingPro data, the stock currently trades at $136.38, with analyst targets ranging from $105 to $200.

The research firm described Datadog’s Q2 2025 performance as a "blowout," noting it delivered the largest dollar beat versus midpoint guidance in the company’s history, surpassing even the strong results seen during Q4 2021 at the height of pandemic-driven cloud consumption.

On a percentage basis, this represented Datadog’s largest earnings beat since 2022, with management subsequently raising full-year guidance by more than twice the Q2 outperformance, marking the company’s largest midpoint increase ever.

The strong performance was largely attributed to Datadog’s "Born-in-AI" customer cohort, which grew to represent 11% of revenue in Q2, up from 8% in Q1, and contributed a 10 percentage point tailwind to overall growth compared to 6% in the previous quarter.

Despite these positive results, Bernstein noted that the stock declined following the earnings announcement, suggesting investors may have concerns about the source of the outperformance.

In other recent news, Datadog has reported impressive second-quarter results, with revenue reaching $827 million, marking a 28% year-over-year growth. This growth significantly exceeded management’s guidance range and Wall Street’s expectations. The company’s operating margins were in line with analyst estimates, reaching 20%. Several firms responded to these results by raising their price targets for Datadog. Evercore ISI increased its target to $170 from $132, while DA Davidson and Rosenblatt also set their targets at $170, citing strong performance and growth driven by AI-native activities. Mizuho (NYSE:MFG) raised its target to $155, highlighting the company’s larger-than-expected upside. Needham maintained its price target at $175, noting the significant contribution from Datadog’s AI-Native customer cohort. These recent developments reflect a strong quarter for Datadog, with analysts recognizing the company’s robust performance and growth potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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