Datadog reports Q2 2026 earnings, revenue hits $1B with AI tool launches

Datadog shares fall 16% as investors punish slower growth outlook

Datadog fell 16% after guiding slower Q3 growth despite Q2 beat: $1.12B revenue (+36% YoY), $0.65 EPS vs forecasts. Selloff reflects sentiment shift—after year-long rally, market demands growth proof as major AI customer cuts usage despite nine-figure renewal.