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
Datadog's AI observability push sparks fresh buzz amid volatile trading.
- Launched Model Context Protocol server in March 2026, enabling AI agents to securely tap real-time observability data and fueling expansion into high-growth AI spaces.
- March 13th options trading kicked off with active puts and calls around $129-$131 strikes, reflecting trader bets on near-term upside amid 27% yearly gains.
- Stock surged over 7% on March 4 after early-week lows, underscoring resilience tied to Q4 revenue beats and aggressive AI reinvestments.
Zscaler Shares Bounce as Investors Buy the Dip Amid Sector Rebound and Analyst Optimism
- Revenue surged 26% year-over-year to $815.8 million, topping estimates by 2.2%, which underscores robust demand for zero-trust solutions despite market headwinds.
- EPS hit $1.01, beating forecasts by 13.5% and with guidance exceeding Wall Street expectations, easing worries over execution in a tough environment.
- Wells Fargo launched coverage with an Overweight rating, citing Red Canary acquisition as a platform growth catalyst and steady 20% expansion in AI-driven security areas.
Datadog's AI observability push sparks fresh buzz amid volatile trading.
- Launched Model Context Protocol server in March 2026, enabling AI agents to securely tap real-time observability data and fueling expansion into high-growth AI spaces.
- March 13th options trading kicked off with active puts and calls around $129-$131 strikes, reflecting trader bets on near-term upside amid 27% yearly gains.
- Stock surged over 7% on March 4 after early-week lows, underscoring resilience tied to Q4 revenue beats and aggressive AI reinvestments.
Zscaler Shares Bounce as Investors Buy the Dip Amid Sector Rebound and Analyst Optimism
- Revenue surged 26% year-over-year to $815.8 million, topping estimates by 2.2%, which underscores robust demand for zero-trust solutions despite market headwinds.
- EPS hit $1.01, beating forecasts by 13.5% and with guidance exceeding Wall Street expectations, easing worries over execution in a tough environment.
- Wells Fargo launched coverage with an Overweight rating, citing Red Canary acquisition as a platform growth catalyst and steady 20% expansion in AI-driven security areas.
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's next earnings report is estimated to be released on May 5, 2026, though the company has not officially confirmed this date. The announcement will cover Q1 2026 results and is based on the company's historical earnings release pattern. Analysts currently expect the company to report earnings per share of approximately $0.50 for the quarter. The earnings announcement will likely be followed by a conference call for investors, consistent with Datadog's typical practice.
Zscaler (ZS) Next Earnings Date
Zscaler (ZS) is scheduled to announce its next earnings report on May 28, 2026, covering the Q1 fiscal 2026 quarter. The company typically releases earnings after market close on the announced date. Based on historical patterns, analysts expect the company to report earnings per share in line with recent performance, which has consistently exceeded expectations. Investors should monitor the company's guidance and forward-looking statements during the earnings call for insights into future growth prospects.
Datadog (DDOG) Next Earnings Date
Datadog's next earnings report is estimated to be released on May 5, 2026, though the company has not officially confirmed this date. The announcement will cover Q1 2026 results and is based on the company's historical earnings release pattern. Analysts currently expect the company to report earnings per share of approximately $0.50 for the quarter. The earnings announcement will likely be followed by a conference call for investors, consistent with Datadog's typical practice.
Zscaler (ZS) Next Earnings Date
Zscaler (ZS) is scheduled to announce its next earnings report on May 28, 2026, covering the Q1 fiscal 2026 quarter. The company typically releases earnings after market close on the announced date. Based on historical patterns, analysts expect the company to report earnings per share in line with recent performance, which has consistently exceeded expectations. Investors should monitor the company's guidance and forward-looking statements during the earnings call for insights into future growth prospects.
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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