Datadog, Inc. stock research
FY2026 Q1
Datadog (DDOG) Gross Margin & Quarterly History
Explore Datadog, Inc. (DDOG) gross margin from 2023 through the latest reported quarter, using SEC-sourced revenue, gross profit, and direct costs.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue increased sequentially and year-over-year, with gross profit rising in line. Cost of revenue also grew, resulting in a gross margin that was slightly lower than the prior quarter but nearly unchanged from the same quarter last year.
- The strongest observable margin driver is the relative growth of cost of revenue compared to revenue. In the current quarter, cost of revenue increased at a faster pace than revenue compared to the prior quarter, putting slight pressure on gross margin.
- Compared to the prior quarter, gross margin weakened by a small amount as revenue growth was outpaced by cost of revenue growth. Year-over-year, gross margin was essentially stable, with both revenue and cost of revenue increasing at similar rates.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
79.2%
Gross profit
$797.2M
Revenue
$1.0B
Cost of revenue
$209.2M
Quarter-over-quarter change
-1.2 pts
Year-over-year change
-0.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2025 | $826.8M | $660.8M | $166.0M | 79.9% |
| Sep 30, 2025 | $885.7M | $709.2M | $176.5M | 80.1% |
| Dec 31, 2025 | $953.2M | $766.3M | $186.9M | 80.4% |
| Mar 31, 2026 | $1.0B | $797.2M | $209.2M | 79.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
-1.2 pts
Year-over-year change
Mar 31, 2025
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relative growth of cost of revenue compared to revenue. In the current quarter, cost of revenue increased at a faster pace than revenue compared to the prior quarter, putting slight pressure on gross margin.
Compared to the prior quarter, gross margin weakened by a small amount as revenue growth was outpaced by cost of revenue growth. Year-over-year, gross margin was essentially stable, with both revenue and cost of revenue increasing at similar rates.
Monitor the effect of macroeconomic uncertainty on customer spending, as highlighted in the company's risk factors.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Datadog, Inc. (DDOG) | 79.2% |