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# Datadog Guides Fourth-Quarter Growth To 25% To 26% As Early Renewals At Better Prices Weigh On Revenue
- URL: https://www.bullished.co/datadog-guides-fourth-quarter-growth-to-25-to-26-as-early-renewals-at-better-prices-weigh-5714e177/
- Published: 2026-11-04T14:26:13.000Z
- Updated: 2026-11-04T14:26:13.000Z
- Description: Large customers renewed earlier than expected, trading bigger commitments for lower prices, CEO Olivier Pomel told analysts.
- Author: Matteo Parrino
- Tags: Earnings, DDOG, Industry: Technology

Datadog CEO Olivier Pomel said on the company's third-quarter earnings call Wednesday that several large customers renewed "way earlier than we thought we would," a good-news trend that he said creates a short-term drag on revenue. The monitoring-software company [guided fourth-quarter revenue](https://www.marketwatch.com/story/datadog-reports-higher-3q-profit-revenue-on-continued-adoption-2f0d87e0?ref=bullished.co) to $1.19 billion to $1.2 billion, or 25% to 26% growth, against 35% in the third quarter.

## Bigger commitments, lower prices

Pomel told a Morgan Stanley analyst the renewals are

## The largest customer sits at its floor

CFO David Obstler said the fourth-quarter guidance counts the largest customer at its minimum commitment. That customer spent

## The business behind the numbers

[Datadog](https://www.bullished.co/tag/ddog/) sells a cloud-based platform that monitors and secures the applications and systems companies run in the cloud. Third-quarter revenue was $1.197 billion, up 35% from a year earlier and above the high end of guidance, with free cash flow of $251 million, a 21% margin.

Obstler said Datadog will give 2027 guidance on its year-end call.

Learn

- [How To Read An Earnings Call Transcript: Start With Guidance, Then Find What's Missing →](https://www.bullished.co/learn/how-to-read-an-earnings-call/)  
How to read an earnings call transcript: check guidance first, look for dropped metrics, compare growth with last quarter, and watch hedged wording.

### Sources

- [Datadog Reports Higher 3Q Profit, Revenue on Continued Adoption](https://www.marketwatch.com/story/datadog-reports-higher-3q-profit-revenue-on-continued-adoption-2f0d87e0?ref=bullished.co) — MarketWatch
- [Datadog Stock: Datadog Earnings Top Views. Shares Plunge On Weak Sales Outlook. | Investor's Business Daily](https://www.investors.com/news/technology/datadog-stock-ddog-datadog-earnings-news-q32026/?ref=bullished.co) — investors.com
- [Datadog Beats Earnings Expectations. The Stock Acts as If It Didn’t.](https://www.barrons.com/articles/datadog-earnings-stock-price-ai-d58acd9c?mod=md%5Fhome%5Fpan%5Fmkt%5Fnews&ref=bullished.co) — Barron's
- [Datadog: Q3 Earnings Snapshot](https://finance.yahoo.com/markets/stocks/articles/datadog-q3-earnings-snapshot-121256404.html?ref=bullished.co) — Associated Press
- [Datadog Q3 earnings on deck: What to expect (DDOG:NASDAQ)](https://seekingalpha.com/news/4663757-datadog-q3-earnings-on-deck-what-to-expect?ref=bullished.co) — seekingalpha.com

### More on Datadog

- [Datadog Net Income Triples To $118.3 Million On 35% Revenue Growth, But Its Fourth-Quarter Outlook Is Flat](https://www.bullished.co/datadog-net-income-triples-to-118-3-million-on-35-revenue-growth-but-its-fourth-quarter-c1e649f4/)

[All Datadog (DDOG) coverage →](https://www.bullished.co/tag/ddog/)