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DDOG 3Q25: What Difference could Two Earnings Calls Make
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OpenAI renewal + core cohort re-accel bolster 2026 growth; 4Q guide implies no decel, margins beat.
We successfully called the OpenAI sentiment shift in DDOG 1Q Preview.
DDOG delivered another solid quarter. While 3Q revenue growth was slightly below consensus, 4Q guidance was better than expected. Crucially, management reversed last quarter’s disappointing performance by addressing the market’s two main concerns: the re-acceleration of revenue from non-AI customers and the completed renewal of OpenAI’s contract. This significantly improves visibility for 2026 growth and solidifies DDOG’s “AI winner” status. We remain positive on DDOG’s critical ecosystem position in AI infra and believe the commencement of Bits AI sales next year will provide a new revenue growth engine.
Earnings Review: Implied No Deceleration in 4Q
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