Datadog Inc., Rapid7 Inc. and Fastly Inc. all beat Wall Street’s third-quarter forecasts today, but Rapid7 was the only one of the three to see its shares rise.

A cautious outlook tied to one large customer knocked about 14% off Datadog’s stock in regular trading. Rapid7 jumped 18% after hours on results that came despite a decline in revenue.

Datadog

For its third quarter, which ended on Sept. 30, Datadog reported adjusted earnings of 81 cents per share, up from 55 cents a year earlier, on revenue of $1.20 billion, up 35% year-over-year. Analysts were expecting 64 cents per share on revenue of $1.14 billion.

Unadjusted net income climbed to $118.3 million from $33.9 million, and the adjusted operating margin widened five points to 28%. Billings in the quarter rose 30% to $1.16 billion, Chief Financial Officer David Obstler said on the earnings call, with remaining performance obligations up 38% at $3.85 billion. Free cash flow came to $251 million.

Co-founder and Chief Executive Olivier Pomel told analysts that more than 850 artificial intelligence companies now use Datadog, roughly 100 more than at the end of June. Adoption is strong across the platform as customers scale “their digital operations and use of AI,” he said in the earnings release. Customers worth $100,000 or more a year in recurring revenue rose 20% to about 4,860.

Full-year guidance went up. Datadog now expects 2026 revenue of $4.515 billion to $4.525 billion, against the $4.45 billion to $4.47 billion it projected in August, and adjusted earnings of $2.73 to $2.75 per share. Fourth-quarter adjusted earnings are forecast at 69 to 71 cents per share.

Revenue for the fourth quarter is guided at $1.19 billion to $1.20 billion, roughly what analysts had expected, with the top of the range only about $3 million above third-quarter revenue. The forecast assumes Datadog’s largest customer, an AI provider the company has not named, spends no more than its contractual minimum, according to Obstler.

Usage on that account dropped in the third quarter while staying above the floor. Excluding it, implied fourth-quarter growth is in the low- to mid-30% range. Early renewals with some large AI customers, signed at higher commitments in return for better pricing, are also holding back near-term revenue.

The roughly 14% drop today made it two straight quarters in which a beat failed to hold up the stock. Datadog shares closed 19% lower in August, the day the company disclosed the customer’s planned cutback.

Rapid7

In Rapid7’s third quarter, also ended Sept. 30, the cybersecurity company posted adjusted earnings of 60 cents per share, up from 57 cents a year earlier, on revenue of $212.4 million, down 2.5% year-over-year. Analysts were expecting 46 cents per share on revenue of $209 million.

Annualized recurring revenue slipped 2.2%, to $819.7 million, ahead of the roughly $812 million the company had guided to in August. Adjusted operating income rose to $46.2 million from $36.9 million. Unadjusted net income fell to $3.5 million from $9.8 million after $10 million in restructuring costs from the 12% workforce cut announced in August and a $5.5 million write-down on a strategic equity investment.

Rapid7 demonstrated its Agentic SOC at Black Hat USA in August, using AI agents to speed up investigations while leaving high-impact decisions to analysts. Wael Mohamed, who took over as CEO in June, said the core business “is becoming more stable” and that “one quarter of stability is just a start.” Rapid7 is “not declaring victory,” he added.

The company’s full-year adjusted earnings forecast moved to $1.94 to $1.96 per share, well above the $1.78 to $1.83 it gave three months ago. Revenue guidance edged up to $841 million to $843 million. For the fourth quarter, Rapid7 sees revenue of $208 million to $210 million, down 3% to 4% from a year earlier, and adjusted earnings of 53 to 55 cents per share.

The stock climbed about 18% in extended trading.

Fastly

Edge cloud platform provider Fastly reported adjusted earnings of 17 cents per share for its third quarter, up from 7 cents a year earlier, on record revenue of $190.2 million, up 20% year-over-year. Analysts were expecting 12 cents per share on revenue of $187.9 million.

Most of Fastly’s revenue still comes from network services, which grew 16%, to $138 million. Security sales rose twice as fast, to $44.7 million, in a quarter when the company also launched AI Firewall to block prompt injection and other attacks before they reach a model. Trailing-12-month net retention was its highest since 2022, at 119%. The top 10 customers now account for 39% of revenue, up from 32% a year ago.

Fourth-quarter revenue is forecast at $198 million to $202 million, ahead of the $197 million analysts had modeled. Full-year revenue guidance moved up to $744 million to $748 million from $732 million to $746 million in August. Adjusted earnings for 2026 are now expected at 61 to 63 cents per share. None of that stopped Fastly shares from falling about 14% after the bell.

Photo: Datadog