DDOGBULLISH

Gross Margin

79.2%

Higher than 78% of Technology sector peers

Updated 1054h ago

Sector Performance

78th percentile

DDOG

79.2%

Sector Median

65.2%

Sector Avg

60.6%

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Deep Analysis

Datadog, Inc. (DDOG) has a Gross Margin of 79.2% as of May 2026.

This places DDOG in the 78th percentile of the Technology sector, which has a median Gross Margin of 65.2% and a sector average of 60.6%. DDOG's Gross Margin is 21.5% above the sector median. In context: Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

Frequently Asked Questions

What does the Gross Margin tell investors about DDOG?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does DDOG's Gross Margin compare to its sector?

DDOG's Gross Margin of 79.2% compares to a Technology sector median of 65.2%, placing it in the 78th percentile.

Who are DDOG's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: LYFT (47.6%), COHU (46.3%), UBER (45.0%), LSPD (44.4%), GRAB (43.4%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.