Datadog vs Zscaler
Datadog and Zscaler are compared on this page to illuminate differences in business models, financial performance, and market context. This page examines each company's approach to product strategy, revenue generation, cost structure, and competitive positioning in a neutral, accessible way. Educational content, not financial advice.
Datadog and Zscaler are compared on this page to illuminate differences in business models, financial performance, and market context. This page examines each company's approach to product strategy, r...
Why It's Moving
Analysts Adjust Datadog Targets Ahead of Q4 Earnings, Balancing Recent Beats with Insider Sales.
- Evercore ISI lowered its price target but kept 'outperform,' implying 35% upside, as DA Davidson reaffirmed 'buy' at $225.
- Q3 revenue hit $886M, up 28% YoY with EPS of $0.55 beating forecasts, fueling optimism for upcoming results.
- Insiders sold 1.04M shares worth $187M in three months, contrasting strong analyst consensus of Moderate Buy at $189 average target.
Zscaler's AI Threat Report Sparks Rally Amid Fresh Aussie Partnership Boost
- AI report highlighted 100% of enterprise AI systems with critical flaws and 410 million DLP violations linked to ChatGPT, driving a 2.39% stock gain and $852M market cap boost as investors eye Zscaler's leadership in AI-driven security.
- Shares surged 2.94% on January 26, hitting an intraday high of $216.70, fueled by momentum in cloud security amid broader AI risk awareness.
- New Optus partnership on February 2 targets simplified security for modern workforces, positioning Zscaler to capture growth in high-threat environments.
Analysts Adjust Datadog Targets Ahead of Q4 Earnings, Balancing Recent Beats with Insider Sales.
- Evercore ISI lowered its price target but kept 'outperform,' implying 35% upside, as DA Davidson reaffirmed 'buy' at $225.
- Q3 revenue hit $886M, up 28% YoY with EPS of $0.55 beating forecasts, fueling optimism for upcoming results.
- Insiders sold 1.04M shares worth $187M in three months, contrasting strong analyst consensus of Moderate Buy at $189 average target.
Zscaler's AI Threat Report Sparks Rally Amid Fresh Aussie Partnership Boost
- AI report highlighted 100% of enterprise AI systems with critical flaws and 410 million DLP violations linked to ChatGPT, driving a 2.39% stock gain and $852M market cap boost as investors eye Zscaler's leadership in AI-driven security.
- Shares surged 2.94% on January 26, hitting an intraday high of $216.70, fueled by momentum in cloud security amid broader AI risk awareness.
- New Optus partnership on February 2 targets simplified security for modern workforces, positioning Zscaler to capture growth in high-threat environments.
Investment Analysis
Datadog
DDOG
Pros
- Datadog is a leading provider of cloud-based monitoring and analytics solutions with a strong industry position.
- It has shown consistent revenue growth driven by the increasing demand for observability and IT operations tools.
- Its risk profile includes moderate volatility, facilitating portfolio diversification with some positive correlation to peers.
Considerations
- The company's return on equity (ROE) is relatively low at 4.35%, below many industry peers, indicating moderate profitability.
- Datadog's risk-adjusted performance, such as the Sharpe ratio of 0.06, is significantly weaker compared to competitors like Zscaler.
- Price volatility is somewhat high at 11.87%, reflecting larger price fluctuations that may increase investment risk.
Zscaler
ZS
Pros
- Zscaler is a major player in cloud security with a market capitalization slightly above $44 billion, similar in scale to Datadog.
- It exhibits stronger risk-adjusted returns, with a Sharpe ratio of 1.31, suggesting better risk management and return balance.
- Zscaler has slightly lower price volatility (11.14%) compared to Datadog, implying relatively steadier price movements.
Considerations
- Despite its scale and growth, Zscaler operates in a competitive cyber security space with significant rivals like CrowdStrike and Palo Alto Networks.
- The stock shows moderate price fluctuations which still indicate notable investment risk in a volatile sector.
- Its valuation and profitability metrics may be pressured by ongoing innovation demands and pricing competition within cloud security.
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Datadog (DDOG) Next Earnings Date
Datadog (DDOG) is scheduled to report its next earnings on February 10, 2026, before market open. This release will cover the fiscal quarter ending December 2025 (Q4 2025). The date aligns with the company's historical pattern of early February reporting for Q4 results.
Zscaler (ZS) Next Earnings Date
Zscaler (ZS) has not confirmed its next earnings date, but estimates point to March 4, 2026, following the company's historical pattern of late February to early March releases for Q2 fiscal results. This report will cover the fiscal quarter ending January 2026. Investors should monitor for official confirmation, as dates can shift slightly based on internal schedules.
Datadog (DDOG) Next Earnings Date
Datadog (DDOG) is scheduled to report its next earnings on February 10, 2026, before market open. This release will cover the fiscal quarter ending December 2025 (Q4 2025). The date aligns with the company's historical pattern of early February reporting for Q4 results.
Zscaler (ZS) Next Earnings Date
Zscaler (ZS) has not confirmed its next earnings date, but estimates point to March 4, 2026, following the company's historical pattern of late February to early March releases for Q2 fiscal results. This report will cover the fiscal quarter ending January 2026. Investors should monitor for official confirmation, as dates can shift slightly based on internal schedules.
Which Baskets Do They Appear In?
Trusted Partners (Oracle MSFT NET CYBR & More)
Oracle's reported deal to manage TikTok's U.S. operations highlights a critical need for trusted technology partners to navigate geopolitical tensions. This creates an investment opportunity in U.S. companies that provide secure data infrastructure and cybersecurity services to foreign firms.
Published: September 16, 2025
Explore BasketWhich Baskets Do They Appear In?
Trusted Partners (Oracle MSFT NET CYBR & More)
Oracle's reported deal to manage TikTok's U.S. operations highlights a critical need for trusted technology partners to navigate geopolitical tensions. This creates an investment opportunity in U.S. companies that provide secure data infrastructure and cybersecurity services to foreign firms.
Published: September 16, 2025
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