Fortinet vs Datadog
Global cybersecurity company offering firewalls and cloud security services vs Enterprise cloud monitoring and analytics platform. Which is the better buy for your portfolio in August 2026? Plain-English answer below.
Fortinet sells integrated network security hardware and software to enterprises that value control and consolidation, while Datadog built a cloud-native observability platform that developers and ops teams can't seem to stop expanding usage of. Both are chasing the same corporate IT budget, and both post impressive revenue retention metrics that make their growth stories credible. The Fortinet vs Datadog comparison digs into how each company's go-to-market model, margin structure, and competitive positioning play out in the current spending environment.
Fortinet sells integrated network security hardware and software to enterprises that value control and consolidation, while Datadog built a cloud-native observability platform that developers and ops ...
Why It’s Moving
Fortinet is gaining momentum on AI security expansion and strong post-earnings demand trends.
- Fortinet’s latest catalyst came from an Aug. 17 AI-security acquisition, signaling management is still investing to extend its platform into fast-growing AI protection and keep the product story fresh.
- Recent post-earnings commentary has focused on accelerating demand across Fortinet’s security portfolio, with stronger hardware, SASE, and recurring revenue trends reinforcing the view that growth is broadening beyond one-off spending.
- The stock has also been supported by the company’s recent second-quarter beat and raised full-year outlook, which gave investors more confidence that current momentum can carry into the second half of 2026.
DDOG is moving on a strong earnings beat, but investor nerves over AI customer usage are muting the reaction.
- Second-quarter results beat expectations, with revenue rising 36% year over year and earnings topping estimates, which initially reinforced the growth story around observability and AI-driven demand.
- The stock came under pressure after management flagged softer usage from a major AI customer, raising questions about how much of the recent growth surge is tied to one account.
- Investor focus also shifted to the company’s improved full-year outlook and conference comments showing growth broadening beyond AI, suggesting the business is still expanding across enterprise and smaller customers.
Fortinet is gaining momentum on AI security expansion and strong post-earnings demand trends.
- Fortinet’s latest catalyst came from an Aug. 17 AI-security acquisition, signaling management is still investing to extend its platform into fast-growing AI protection and keep the product story fresh.
- Recent post-earnings commentary has focused on accelerating demand across Fortinet’s security portfolio, with stronger hardware, SASE, and recurring revenue trends reinforcing the view that growth is broadening beyond one-off spending.
- The stock has also been supported by the company’s recent second-quarter beat and raised full-year outlook, which gave investors more confidence that current momentum can carry into the second half of 2026.
DDOG is moving on a strong earnings beat, but investor nerves over AI customer usage are muting the reaction.
- Second-quarter results beat expectations, with revenue rising 36% year over year and earnings topping estimates, which initially reinforced the growth story around observability and AI-driven demand.
- The stock came under pressure after management flagged softer usage from a major AI customer, raising questions about how much of the recent growth surge is tied to one account.
- Investor focus also shifted to the company’s improved full-year outlook and conference comments showing growth broadening beyond AI, suggesting the business is still expanding across enterprise and smaller customers.
Investment Analysis
Fortinet
FTNT
Pros
- Fortinet has a strong market capitalisation of approximately $61 billion and reported annual revenue of $6.55 billion, reflecting solid business scale.
- The company specializes in converged networking and cybersecurity solutions, positioning it well in a critical and growing market segment.
- Fortinet maintains a relatively moderate stock volatility of about 6.49%, indicating lower share price fluctuation compared to peers like Datadog.
Considerations
- The stock currently has an analyst consensus of 'Hold' with limited upside potential, reflecting moderate market expectations.
- Its price-to-earnings ratio around 32.8 suggests the stock might be fairly valued or slightly expensive relative to earnings.
- Fortinet’s stock has seen a significant drawdown historically, with past declines over 50%, indicating potential downside risk during adverse market conditions.
Datadog
DDOG
Pros
- Datadog operates as a leading provider of observability and security for cloud-based applications, a rapidly expanding technology area.
- Despite higher volatility than Fortinet, Datadog's recent year-to-date performance has been strong, showing robust investor interest and growth potential.
- The company benefits from industry trends towards cloud migration and increasing IT infrastructure complexity, supporting long-term growth.
Considerations
- Datadog’s stock exhibits significantly higher volatility, about 11.87%, creating greater investment risk from price swings.
- The company has experienced large historical drawdowns exceeding 65%, highlighting possible vulnerability to market corrections or sector shifts.
- Its stock price is negatively impacted by recent market sentiment and technical indicators, suggesting some current weakness or uncertainty.
next-earnings-date-heading
Fortinet’s next earnings release is expected on November 4, 2026, based on its historical reporting pattern. The report should cover fiscal Q3 2026. This timing is consistent with the company’s usual late-October to early-November earnings cycle.
next-earnings-date-heading
Datadog’s next earnings date is expected on November 5, 2026, based on its current reporting pattern. The upcoming release should cover Q3 fiscal 2026 results. This estimate is consistent with the company’s post–Q2 reporting cadence and market calendars for DDOG.
next-earnings-date-heading
Fortinet’s next earnings release is expected on November 4, 2026, based on its historical reporting pattern. The report should cover fiscal Q3 2026. This timing is consistent with the company’s usual late-October to early-November earnings cycle.
next-earnings-date-heading
Datadog’s next earnings date is expected on November 5, 2026, based on its current reporting pattern. The upcoming release should cover Q3 fiscal 2026 results. This estimate is consistent with the company’s post–Q2 reporting cadence and market calendars for DDOG.
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