RBC Capital Raises Datadog (DDOG) Price Target to $320
RBC Capital has reiterated its Outperform rating on Datadog, setting a new price target of $320, a 30.13% upside from the current price.
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RBC Capital raised its price target on Datadog, Inc. ($DDOG) to $320 from $280 on October 12, 2026, and rates the stock "Outperform".
Since the rating, $DDOG is down 14.0% to date (from the $287.29 close on Oct 12, 2026).
DDOG
Datadog, Inc.
Key Points
- On October 12, 2026, RBC Capital maintained an Outperform rating on Datadog, Inc. (DDOG) with a new price target of $320, up from $280.
- RBC Capital's $320 price target implies 30.13% upside from Datadog, Inc.'s ($DDOG) current $245.90 share price.
- As of October 16, 2026, Datadog shares were recently trading around $245.90, which is about 23.2% below RBC's new target.
- Datadog has a market cap of approximately $95.6 billion and reported trailing twelve-month revenue of $3.97 billion, reflecting a year-over-year growth of 35.6%.
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Not investment advice. EarningsIQ is not a registered investment adviser, and this automated Datadog, Inc. alert may contain errors. Disclosures
RBC Capital has reiterated its Outperform rating on Datadog, Inc. (DDOG) on October 12, 2026, increasing its price target from $280 to $320. Datadog is a technology company that provides observability and security solutions for cloud applications. The new target suggests a bullish outlook as the stock currently trades significantly below this level.
RBC Capital's Call on Datadog
RBC Capital's new price target of $320 reflects an optimistic view on Datadog's potential for growth. The company has been performing well, with a recent revenue figure of $3.97 billion over the trailing twelve months, showcasing a 35.6% increase compared to the previous year. The stock was recently trading at $245.90, which is about 23.2% below the new target.
Other Institutional Activity in Datadog
Several other institutional investors have shown interest in Datadog. Blackrock Inc. holds 35,546,533 shares worth about $8.78 billion, having increased its stake by 296,104 shares. Vanguard Capital Management LLC owns 21,604,265 shares valued at approximately $5.34 billion, with a recent increase of 283,565 shares. FMR, LLC has a significant position as well, holding 19,758,680 shares worth about $4.88 billion, having boosted its holdings by 6,470,173 shares.
Datadog, Inc. Stock Down 8.7%
As of October 16, 2026, Datadog shares were trading at $245.90, which is below its 50-day moving average of $247.08, but above its 200-day moving average of $190.42. The stock is currently 18.2% lower than its 52-week high of $300.68, but it is 150.9% above its 52-week low of $98.01. This positioning indicates that while the stock has room for growth, it is currently facing some headwinds.
$DDOG price target
Datadog, Inc. daily closes and this analyst's $320 target. Not advice.
Recent Earnings
Datadog reported trailing twelve-month revenue of $3.97 billion, reflecting a year-over-year growth of 35.6%. The company's net margin stands at 4.5%, and the return on equity is 4.7%. The next earnings report is scheduled for November 4, 2026, which investors will be watching closely for further insights into the company's performance.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
15 target raises vs 2 cuts.
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EPS & revenue
EPS beat estimates by 15.9%. Revenue beat estimates by 2.6%.
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Profit surprise
EBITDA missed by 66 percent. Operating income missed by 71 percent.
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Pre-earnings setup
Bar was high, analysts already very bullish.
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Analyst signal
15 target raises, 2 target cuts.
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Earnings quality
Operating margin up 2.4 points. Positive free cash flow.
Earnings Call Summary
Datadog had an outstanding quarter with revenue of $1.006 billion, up 32 percent year over year and beating expectations. The company landed major deals with two of the world's largest artificial intelligence research teams and saw strong growth in non-artificial-intelligence customers as well, with net revenue retention around 120 percent. Management highlighted strong adoption of their artificial intelligence products like GPU monitoring and their security agents, which are helping customers monitor complex workloads faster and more efficiently.
Guidance Datadog raised full year revenue guidance to $4.3 billion to $4.34 billion, up from prior expectations. For next quarter they expect $1.07 billion to $1.08 billion in revenue. They are investing heavily in artificial intelligence products and expect continued strong growth driven by cloud migration and new AI training workloads at hyperscaler companies.
Slightly positive report. The quarter was acceptable, but the forward setup is not strong.
Insider Buying and Selling at Datadog, Inc.
Recent insider selling includes multiple transactions by David M Obstler, the Chief Financial Officer, who sold a total of 64,000 shares on September 14 and September 21, 2026, for a total value of approximately $9.1 million. Additionally, Kerry Acocella, the General Counsel, sold 5,280 shares valued at about $1.2 million around the same time. These transactions occurred before the recent analyst rating by RBC Capital.
Analysts Set New Price Targets
On October 12, 2026, RBC Capital maintained its Outperform rating on Datadog with a new price target of $320. Earlier, on October 9, CIBC also maintained its Outperformer rating with a price target of $315. The consensus price target among analysts is approximately $290.38, with 47 analysts providing opinions on Datadog's stock.
About Datadog, Inc.
Datadog, Inc. operates an observability and security platform for cloud applications in the United States and internationally. The company's solutions help businesses monitor their applications and infrastructure, ensuring optimal performance and security. With a growing market presence, Datadog continues to attract institutional investment and analyst attention.
Bottom Line
Investors should keep an eye on Datadog's upcoming earnings report on November 4, 2026, as it may provide further insights into the company's growth trajectory. RBC Capital's reiteration of its Outperform rating and increased price target could indicate a favorable outlook for the stock moving forward.
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Source: RBC Capital's rating change on $DDOG (Oct 12, 2026). Written by software, not financial advice. How we make alerts