Canadian Halal Investor.

NASDAQ Shariah screener · October 2026

Is Datadog, Inc. (DDOG) Halal?

FAIL

Datadog, Inc. · NASDAQ: DDOG · Technology

The short answer

No — Datadog (DDOG) does not pass this Shariah stock screen. Its business is pure observability/security SaaS (infrastructure & APM monitoring, log management, cloud security) with no prohibited lines, and its only debt is $1.0B of 0% 2029 convertible notes — about 1.0% of its ~$99.27B market cap (359.1M shares at $276.46, Oct 1, 2026), well under the 33% ceiling. But FY2025 interest income of $194.4M (earned on money-market funds and marketable securities, per the 10-K) is about 5.67% of $3,427.2M revenue — above the 5% non-compliant income ceiling. The H1 2026 interim ratio improved to ~4.69%, under the ceiling. Zoya flags DDOG not Shariah-compliant (Sep 2026) and Musaffa rates it Not Halal (Apr 2026); no ShariaPortfolio coverage was found.

Gate 1 — Business activity: PASS

Datadog, Inc. (NASDAQ: DDOG) sells a cloud-based observability and security platform as subscriptions. The FY2025 10-K describes products including infrastructure monitoring, application performance monitoring (APM), log management, network monitoring, synthetics and real-user monitoring, plus cloud security, cloud SIEM, code security and LLM/AI observability. Revenue is software subscription revenue; no alcohol, gambling, pork, conventional banking/insurance, tobacco, cannabis, or adult-entertainment lines are disclosed. Gate 1 passes. Facts only.

Gate 2 — Debt and cash: PASS

At June 30, 2026 Datadog's only funded debt was its $1.0B of 0.00% convertible senior notes due 2029 (carrying amount $985.5M, per the Q2 2026 10-Q; the 2025 notes matured in June 2025). Against a market cap of about $99.27B — roughly 359.1M shares outstanding at the $276.46 October 1, 2026 close — debt ÷ market cap is about 0.99%, far below the ~33% ceiling. Cash plus marketable securities of ~$4.99B ($435.0M cash and $4,550.5M securities at June 30, 2026) are about 5.0% of market cap, within the ~33% guideline. Gate 2 passes. Facts only.

Gate 3 — Non-compliant income: FAIL

FY2025 interest income was $194.4M (Note 13 of the 10-K), against revenue of $3,427.2M — about 5.67% of revenue, above the 5% non-compliant income limit. The 10-K says the interest is earned on money-market funds in cash equivalents and on marketable securities. The most recent interim filing shows improvement: H1 2026 interest income of $99.8M on revenue of $2,127.9M is about 4.69%, under the ceiling — but on the most recent full-year basis used here, Gate 3 fails. Facts only.

Key figures used

Frequently asked questions

What does Datadog do?

Datadog (NASDAQ: DDOG) is a US software company selling a cloud-based observability and security platform. Its products include infrastructure monitoring, application performance monitoring, log management, network monitoring, synthetics and real-user monitoring, cloud security, cloud SIEM, and AI/LLM observability, sold as subscriptions to development and IT operations teams. Revenue is software subscription revenue; the 10-K discloses no alcohol, gambling, pork, conventional banking or insurance, tobacco, cannabis, or adult-entertainment lines. The business gate passes.

Why does Datadog fail this Shariah stock screen?

Datadog's business is pure software with no prohibited lines, and its debt is about 1.0% of market cap — but it fails the income gate on the most recent annual figures. In FY2025 (10-K filed February 18, 2026), interest income was $194.4M against revenue of $3,427.2M — about 5.67% of revenue, above the 5% non-compliant income ceiling. The most recent interim filing (Q2 2026 10-Q, August 6, 2026) shows improvement: H1 2026 interest income of $99.8M on revenue of $2,127.9M is about 4.69%, under the ceiling — but the most recent full-year figures still exceed it. Both Zoya and Musaffa also flag DDOG as not Shariah-compliant. This is a factual screen, not a religious ruling — consult a qualified scholar for personal guidance.

What is Datadog's interest-bearing debt ratio?

Datadog's only funded debt is its $1.0B of 0.00% convertible senior notes due 2029 (the older 2025 notes matured in June 2025). The carrying amount was $985.5M at June 30, 2026 (Q2 2026 10-Q). Against a market cap of about $99.27B (359.1M shares at the $276.46 October 1, 2026 close), debt divided by market cap is about 0.99%, far below the 33% ceiling. Cash plus marketable securities of about $4.99B ($435.0M cash and $4,550.5M securities at June 30, 2026) are about 5.0% of market cap, within the 33% guideline. The financial-structure gate passes; the failure is on the income gate.

What is Datadog's non-compliant income ratio?

For FY2025, Datadog reported interest income of $194.4M (Note 13 of the 10-K) against revenue of $3,427.2M — about 5.67% of revenue, above the 5% non-compliant income ceiling. The 10-K describes this income as earned on money-market funds in cash equivalents and on marketable securities. The most recent interim period shows the ratio falling: H1 2026 interest income of $99.8M ($50.6M in Q2) against revenue of $2,127.9M is about 4.69%, under the ceiling, and Q1 2026 alone was $49.2M against $1,006.4M, about 4.89%. On the most recent full-year basis used here, the income gate fails.

Do Zoya, Musaffa, or ShariaPortfolio cover Datadog?

Zoya covers DDOG: its page (reviewed September 2026) flags Datadog as not Shariah-compliant and not halal to invest in, based on the company's latest financial reports. Musaffa also covers DDOG: its Nasdaq halal-stock list (April 2026) rates it Not Halal. No ShariaPortfolio coverage or rating of Datadog was found — honestly reported as absent, not invented. This page applies the screen directly from Datadog's SEC filings: the FY2025 10-K (filed February 18, 2026) and the Q2 2026 10-Q (filed August 6, 2026).

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).