DDOG vs. NOW: Which cloud software Stock has an edge right now? 1 hour ago Back to top PDF Published on August 25, 2026 | NOW DDOG The Case for DDOG Stock Datadog presents an attractive cloud software opportunity as rising cloud and AI complexity increases demand for unified observability, security and workflow automation. Its SaaS platform integrates infrastructure monitoring, application performance, logs, user experience, cloud security and service management, helping organizations manage increasingly complex technology environments, improve collaboration across teams, accelerate problem resolution and expand automation. This broad platform approach gives Datadog multiple avenues to increase adoption within existing accounts.Second-quarter 2026 results reinforced this thesis as revenues jumped 36% year over year to $1.12 billion, free cash flow reached $279 million and $100K-plus ARR customers rose 23% to about 4,720. Trailing net revenue retention remained in the low 120s, while 58% of customers used at least four products, supporting a strong land-and-expand model.Datadog serves about 33,400 organizations, ranging from startups to large enterprises; more than 750 AI customers use its platform, including all 10 of the top AI leaders. This broad customer footprint gives Datadog exposure to both established enterprises and fast-growing AI workloads, while rising AI adoption could create additional demand for monitoring, security and management tools.Growth opportunities are expanding through AI-powered Bits Code, Bits Chat, Bits Agent Builder, AI Guard and autonomous incident remediation. The Adaptive ML acquisition adds reinforcement-learning expertise that could strengthen specialized agents and world-model research. Since July, Datadog has also advanced Cloud Cost workflows and Work Management, while its August AI-native SAST release broadens protection for LLM applications. Nevertheless, investors should consider the significant risks alongside these opportunities. Competition remains intense, while rapid technological change, cybersecurity threats, service interruptions and weaker IT spending could pressure growth. Datadog has also indicated that usage by its largest customer will decrease starting in the third quarter of 2026; this highlights the sensitivity of its usage-based model to changes in customer workloads. The Case for NOW Stock ServiceNow remains a leading cloud-based enterprise software platform helping large organizations manage technology complexity, automate workflows and connect data, AI and security. Its investment case rests on whether it can turn this broad enterprise footprint into a larger opportunity in AI, cybersecurity and workflow automation.However, investors should weigh several concerns first. In the second quarter of 2026, GAAP operating margin fell to 4% from 11% a year earlier, while GAAP gross margin declined to 70.5% from 77.5%, both contracted 700 basis points year over year, partly reflecting acquisition-related amortization and costs. Stock-based compensation alone represented 16.5% of revenues.The balance sheet also carries more financial obligations following the Armis acquisition. ServiceNow had $2.1 billion of commercial paper outstanding at the end of June, while it issued $4 billion of senior unsecured notes in May to refinance acquisition-related borrowing.The company is facing intense competition, including pricing pressure from vendors like Salesforce, while many enterprises are still struggling to prove AI returns after investing in small-scale AI trials. A U.S. federal channel partner and systems integrator accounted for 13% of second quarter 2026 revenues, highlighting some customer-concentration risk.However, ServiceNow's underlying demand remains strong. In the second quarter of 2026, subscription revenues rose 24.5% year over year to $3.88 billion, while cRPO increased 21% to $13.2 billion. The company also recorded 123 transactions exceeding $1 million in net new ACV, up nearly 40% year over year, suggesting continued strength in large enterprise deals. ServiceNow AI surpassed $1 billion in ACV, agentic AI deployments increased ninefold in nine months, and 658 customers had more than $5 million in ACV. This indicates that AI is beginning to translate from an emerging product opportunity into a meaningful commercial growth driver. Its above 8,800 customers include roughly 90% of the Fortune 500, giving ServiceNow a substantial installed base from which to cross-sell AI, security, CRM and other workflows. Share Price Performance for DDOG & NOW Year to date (YTD), DDOG shares have surged 66%, immensely outperforming NOW's 16.4% decline. Datadog's rally is supported by its faster revenue growth, expanding AI opportunity, deeper enterprise penetration and broader platform adoption. YTD Stock Performance Image Source: Zacks Investment Research Valuation Comparison Both DDOG and NOW stocks are currently overvalued, as suggested by the Value Score F and D, respectively. While DDOG trades at a higher forward 12-month P/S multiple of 15.93X versus 7.3X for NOW, its stretched valuation is supported by faster growth, expanding AI opportunities and deeper platform adoption. Therefore, DDOG's valuation leaves less room for execution disappointments, but its stronger growth profile could help justify the premium if momentum is sustained. Forward 12-Month (P/S) Valuation Image Source: Zacks Investment Research DDOG vs. NOW: Which Has the Stronger Growth Estimates? The Zacks Consensus Estimate for DDOG's 2026 earnings is currently pegged at $2.52 per share, implying approximately 23% year-over-year growth. More importantly, earnings estimates have trended higher over the past 30 and 60 days, suggesting improving analyst sentiment and potentially stronger expectations. Image Source: Zacks Investment Research By comparison, the Zacks Consensus Estimate for NOW's 2026 earnings stands at $4.07 per share, implying 15.6% year-over-year growth. However, estimates have trended lower over the past 30 and 60 days, suggesting relatively softer expectations for ServiceNow's earnings growth. Image Source: Zacks Investment Research Earnings-surprise trends further strengthen DDOG's case. Both companies have beaten the Zacks Consensus Estimate in each of the past four quarters. However, DDOG's average earnings surprise of 15.4% significantly exceeds NOW's 6.8%, indicating that Datadog has demonstrated greater consistency in outperforming analyst expectations. Conclusion DDOG emerges as the stronger pick over NOW, backed by faster revenue and earnings growth, stronger earnings surprises, rising estimates and expanding AI opportunities. Although its premium valuation raises risk, Datadog's accelerating platform adoption, resilient customer expansion, and exposure to growing AI workloads provide a more favorable growth profile, giving DDOG an edge.Currently, DDOG carries a Zacks Rank #3 (Hold), while NOW has a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Datadog launches ai-native SAST for LLM vulnerability detection. 2h ago Cybersecurity Tl;dr. Datadog Code Security now detects LLM-specific vulnerabilities like prompt injection and excessive agency using taint and control flow analysis across six languages. Key points. * Covers OWASP Top 10 for LLM Applications with AI-native detection beyond pattern matching * Supports Python, Go, Java, C#, TypeScript, and JavaScript * Uses taint analysis, control flow analysis, and pattern matching for context-aware vulnerability detection * Integrates directly into PR workflows and CI pipelines with actionable feedback Why it matters. Traditional SAST tools miss LLM-specific vulnerabilities like prompt injection and hidden context exposure that don't appear until production. This addresses a critical gap for teams rapidly deploying LLM applications, shifting security left into development workflows where remediation is cheaper and faster.

Vertosoft announces strategic partnership with Datadog to deliver next-generation monitoring solutions to government. ACCESS Newswire 18 Aug 2026, 22:45 GMT+10 LEESBURG, VA / ACCESS Newswire / August 18, 2026 / Vertosoft is thrilled to announce their newest partnership with Datadog, the leading AI-powered observability and security platform. Through this partnership, Vertosoft will combine its public sector knowledge with Datadog's cloud-based monitoring capabilities to help government agencies more easily adopt modern technologies that support mission success. Datadog provides agencies with unified observability and security across infrastructure, applications, and hybrid cloud environments. With Datadog for Government now FedRAMP(R) High certified, agencies can confidently deploy the platform for highly sensitive federal workloads while meeting some of the government's most rigorous security and compliance requirements. By delivering real-time visibility across an agency's technology stack, the platform enables teams to proactively detect, troubleshoot, and resolve issues before they impact operations. Leveraging AI-driven insights, Datadog helps agencies identify anomalies faster, reduces manual effort, and maintains reliable, secure digital services for mission-critical operations. 'Vertosoft is excited to help bring Datadog's observability and security platform to the US public sector market through its established distribution network of government cooperative contracts and channel partners. By simplifying access to innovative technology, Albuquerque Express can help agencies procure the Datadog solutions they need faster, strengthen their digital operations, and advance mission outcomes,' said Jay Colavita, President of Vertosoft. 'Datadog is one of a select group of tech companies certified to operate in highly sensitive government environments, and Albuquerque Express is proud to work alongside exceptional partners like Vertosoft that strive to set the standard for observability, cloud and AI security, cost management, and compliance in this critical sector,' said Eamon McCormick, AVP of US Public Sector at Datadog. The addition of Datadog to Vertosoft's portfolio reflects the company's continued dedication to bringing best-in-class technology to the public sector. As agencies modernize across hybrid and cloud environments while adopting AI, Vertosoft remains committed to identifying innovative partners that help the public sector modernize operations, strengthen cybersecurity, and improve mission readiness. Together, Vertosoft and Datadog will help government organizations gain the visibility and intelligence needed to operate more efficiently, securely, and effectively. About Vertosoft At Vertosoft, Albuquerque Express is a trusted, value-driven distributor of innovative technology solutions. Its experienced team and tailored services equip its channel partners and suppliers with the tools, contracts, and secure systems needed to succeed in the public sector market. Visit Vertosoft.com to learn more. Contact Information: Name: Nicole Bongianino Title: Channel Marketing Lead Phone: 571-707-4130 Email: [email protected]