[FLASH] Datadog Q2 revenue +36% to $1.12B and FY guide raised; shares fall 17% on Q3 outlook
Datadog reported Q2 2026 revenue of $1.12B (+36% y/y) and EPS of $0.65, lifted FY guidance to $4.45-4.47B, and disclosed that AI integrations now touch 80% of ARR with $100k+ customers up 23% to roughly 4,720. The stock declined 17% as the Q3 guide implied 28-29% growth. The split matters to the AI tape because it separates confirmed AI-observability budget formation from the deceleration the market chose to trade.