Preview|DDOG 2Q26: Healthy Channel Momentum, Bits AI Still Early, OpenAI Optimization Absorbed by Anthropic

We spoke with six experts this quarter: two channel/GSI delivery partners covering global enterprise accounts, one North American F500 channel partner, one observability industry consultant, and two North American enterprise customers on the user side. Overall, channel partners report healthy business trends. Growth is still led by the traditional three (Infra/APM/Logs), with security and Dev-related products taking over as the second growth curve, while AI products themselves are still early in their contribution. On the frontier LLM customers, we understand OpenAI's 2Q usage declined roughly 10-20% q/q with further optimization ahead, while Anthropic's 2Q usage should be quite strong — net net, limited impact on the quarter.

2Q26 Progress and Outlook — Broadly Constructive

North America Channel Expert A

• This expert's 1Q26 ultimately landed at about 26% y/y, above the preliminary 21% we had last quarter; 2Q26 is tracking to 33-35%, a clear acceleration and above his own expectations
  • Last quarter his 1H26 target was 22-24.5%; it has since been revised up to 23.5-26.5%, with 1Q coming in slightly above 26%
• The 2H26 target has been raised sharply from 26-28.5% to 32-37%, making DDOG one of the few vendors for which he has taken targets up this year