Key Points
CoreWeave currently shows stronger overall momentum after overtaking Datadog in total revenue.
Datadog recorded steady quarter-over-quarter revenue growth, while CoreWeave demonstrated a steeper quarter-over-quarter revenue acceleration trend over the last eight quarters.
Investors should watch whether the revenue gap continues to widen or starts to narrow in upcoming quarters.
CoreWeave: Accelerating Revenue Trajectory
CoreWeave (NASDAQ:CRWV) operates a specialized computing infrastructure that provides high-performance servers, storage solutions, and managed services to large enterprises.
It secured a multi-billion dollar term loan facility in May 2026, while reporting a negative 36% net income margin for the quarter ended March 31, 2026.
Datadog: Steady Revenue Progress
Datadog (NASDAQ:DDOG) provides a software application that combines infrastructure oversight, performance tracking, and security surveillance for technology environments.
It announced the acquisition of Adaptive ML in June 2026 to accelerate its ambitions around artificial intelligence, and it recorded a 5% net income margin for the quarter ended March 31, 2026.
Understanding the Revenue Metric
Revenue serves as a baseline indicator of user demand and business scale. Understanding this top-line figure helps investors measure how effectively a business generates sales over time.
Quarterly Revenue for CoreWeave and Datadog
| Quarter (Period End) | CoreWeave Revenue | Datadog Revenue |
|---|---|---|
| Q2 2024 (June 2024) | $395.4 million | $645.3 million |
| Q3 2024 (Sept. 2024) | $583.9 million | $690.0 million |
| Q4 2024 (Dec. 2024) | $747.4 million | $737.7 million |
| Q1 2025 (March 2025) | $981.6 million | $761.6 million |
| Q2 2025 (June 2025) | $1.2 billion | $826.8 million |
| Q3 2025 (Sept. 2025) | $1.4 billion | $885.7 million |
| Q4 2025 (Dec. 2025) | $1.6 billion | $953.2 million |
| Q1 2026 (March 2026) | $2.1 billion | $1.0 billion |
Data source: Company filings. Data as of July 24, 2026.
Foolish Take
The sales trends for CoreWeave and Datadog are an example of how revenue alone is not indicative of whether a company is a worthwhile stock investment. CoreWeave has demonstrated an incredible pace of revenue acceleration, more than doubling the income Datadog brought in during the first quarter.
CoreWeave’s business is seeing jaw-dropping sales growth because it provides infrastructure designed specifically for the advanced technical requirements needed to support AI. The massive demand for this infrastructure is illustrated in CoreWeave’s sales trend.
However, the company is not profitable, posting a Q1 operating loss of $144 million, an increase over the prior year’s loss of $27 million. Worse, it has amassed about $25 billion in debt at the end of Q1 compared to over $2 billion in cash and equivalents.
Datadog may not display CoreWeave’s level of sales growth, but it is a stronger company from a financial perspective. It reported Q1 operating income of $7.3 million, a significant turnaround from an operating loss of $12.4 million in 2025. It exited Q1 with debt of $984.5 million while cash and marketable securities exceeded $4.8 billion.
Robert Izquierdo has positions in CoreWeave and Datadog. The Motley Fool has positions in and recommends Datadog. The Motley Fool has a disclosure policy.