Datadog reports $3.43B revenue in 2025, underscores scale amid AI-observability push

Datadog reported $3.43 billion in 2025 revenue on February 10 and used the results to underline how much scale it already has as it expands deeper into AI observability. (investors.datadoghq.com) The company said fourth-quarter revenue rose 29% year over year to $953 million, while full-year revenue increased 28%. Datadog also said operating cash flow reached $1.05 billion and free cash flow hit $915 million in 2025. (investors.datadoghq.com) Large customers kept growing. Datadog said it ended 2025 with 603 customers generating more than $1 million in annual recurring revenue, up from 462 a year earlier, and about 4,310 customers above $100,000 in annual recurring revenue. (investors.datadoghq.com) Observability is the software that watches modern systems by collecting logs, metrics, traces, and alerts. Datadog’s argument is that the same control panel companies use for cloud apps can also watch artificial intelligence systems as they move from experiments into production. (datadoghq.com) (investors.datadoghq.com) That pitch is getting more concrete through product releases. Datadog said in 2025 it launched Bits AI SRE, Storage Management, Feature Flags, and Data Observability for general availability, and it highlighted new AWS-related AI, observability, and security capabilities in its February results. (investors.datadoghq.com) (datadoghq.com) The integrations story is part of that sales pitch. Datadog said on January 9 that its ecosystem passed 1,000 integrations in 2025, added more than 110 technology partners, and expanded coverage across AI, security, hybrid infrastructure, and data tools. (datadoghq.com) In that roundup, Datadog pointed to integrations for GitHub Copilot, Microsoft Copilot, LiteLLM, BentoML, Hugging Face, and Supabase. The company said those connections help customers track AI usage, latency, token consumption, reliability, and cost inside tools they already run. (datadoghq.com) Datadog has been building this category for more than a year. The company said its LLM Observability product reached general availability in 2024, and later added agent-focused monitoring and experimentation features at its DASH conference in 2025. (datadoghq.com) (nasdaq.com) The through line in Datadog’s recent messaging is that AI creates more systems to watch, not fewer. With $3.43 billion in annual revenue and more than 1,000 integrations, the company is telling customers they can add AI monitoring inside an existing Datadog footprint instead of rebuilding their stack. (investors.datadoghq.com) (datadoghq.com)