Shares of Datadog Inc (NASDAQ:DDOG) came under pressure in trading on Friday, despite an upbeat third-quarter results on Thursday.

Here are some key analyst takeaways:

• DA Davidson analyst Gil Luria reiterated a Buy rating, and upped the price target from $180 to $225.
• Rosenblatt Securities analyst Blair Abernethy maintained a Buy rating, and lifted the price target from $170 to $200.
• Goldman Sachs analyst Kash Rangan reiterated a Buy rating, and raised the price target from $165 to $225.
• BofA Securities analyst Koji Ikeda reaffirmed a Buy rating, taking the price target higher from $180 to $215.
• Citizens JMP Securities analyst Patrick Walravens maintained a Market Perform rating on the stock.

Check out other analyst stock ratings.

DA Davidson: Datadog reported "a great quarter," with revenues beating expectations by around $37 million, Luria said in a note. The revenue growth of 28% year-on-year was "driven by broad-based demand and accelerating growth from Non-AI customers," he added.

Revenue contribution from AI natives improved, with customers spending over $1 million.

"We have increased conviction in Datadog’s favorable positioning for growth and continue to highlight DDOG as a top pick," he further wrote.

Rosenblatt Securities: Datadog reported total revenue of $885.7 million, beating the consensus of $853.6 million, Abernethy said. Gross margins came in at 81% with the business continuing to scale, he added.

"Datadog's customers continued the longstanding trend of growing their consumption and broadening their tool adoption," the analyst wrote. The company guided to fourth quarter revenues of $912-$916 million, while raising its full-year revenue growth guidance to 26%, he further stated.

Goldman Sachs: The core business of platform software companies is stabilizing or reaccelerating, "with AI as an additive vector," Rangan said. This trend has improved versus the start of the year, he added.

"Heading into C26, we believe improvements will continue percolating up the stack – having now moved from infrastructure into platform – and become increasingly visible at the application layer," the analyst wrote. Datadog's accelerating core and AI momentum is likely to support "compounding growth ahead," he further stated.

BofA Securities: Datadog reported non-GAAP earnings of 55 cents per share, beating consensus of 45 cents per share, Ikeda said. Revenue growth from AI-native customers accelerated to 12% year-on-year, from 11% in the previous quarter and from 6% in the third quarter of 2024.

Billings came in at $893 million, topping consensus of $866 million. Growth accelerated to 30%, from 28% growth in the previous quarter, the analyst stated. The company raised its 2025 revenue and non-GAAP earnings guidance from $3.312-$3.322 billion to $3.386-$3.390 billion and from $1.80-$1.83 per share to $2.00-$2.02 per share, respectively.

Citizens JMP Securities: Datadog reported "very strong" results, with revenue, operating income, and free cash flows coming in higher than expected, Walravens said. The company raised its 2025 guidance higher than the third-quarter beat, he added.

Growth outside of its largest AI-native customer, OpenAI, is inflecting higher, the analyst noted. This is driven by broad-based strength and go-to-market investments that are paying dividends. Datadog is becoming "an AI and cloud native beneficiary," which should help it deliver "strong and durable growth" ahead, he further stated.

DDOG Price Action: Shares of Datadog had declined by 4.12% to $182.96 at the time of publication on Friday.

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