Datadog, Inc. reported a 29% year-over-year revenue increase in the fourth quarter of 2025, reaching $953 million. The company saw strong growth in larger customers, with 603 customers generating over $1 million in annual recurring revenue, up from 462 the previous year. Datadog also launched new AI-powered tools for general availability, including Bits AI SRE Agent, Storage Management, Feature Flags, and Data Observability.

For the fiscal year 2025, Datadog’s revenue grew by 28% year-over-year to $3.43 billion. The company reported $1.05 billion in operating cash flow and $915 million in free cash flow. Datadog plans to focus on delivering more AI-powered innovation in 2026 to help customers with cloud migration and next-gen AI deployment.

Looking ahead to the first quarter and fiscal year 2026, Datadog provided guidance for revenue between $951 million and $961 million for the first quarter. For the full fiscal year, the company expects revenue between $4.06 billion and $4.10 billion. Datadog also shared non-GAAP operating income estimates and net income per diluted share for both periods.

Datadog’s fourth quarter and recent business highlights include an increase in customers with ARR of $1 million or more, strategic collaboration with AWS, and the launch of new AI tools like Bits AI SRE Agent and Storage Management. The company is focused on helping organizations monitor, optimize, and secure cloud environments at scale.

Datadog will be hosting an Investor Day on February 12 in New York City. The event will provide further insight into the company’s 2026 plans and strategies for growth. Investors and stakeholders can attend in person or view the webcast for more information.

Read more at GlobeNewswire: Datadog Announces Fourth Quarter and Fiscal Year 2025