Datadog raises annual forecast on strong cloud security demand, shares jump 36%

Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST

May 7 : Cloud security firm Datadog on Thursday raised its annual forecast after beating Wall Street expectations for first-quarter results, fueled by high demand for its cloud security products amid rising artificial intelligence adoption.

• The company's shares were up nearly 36 per cent in early trading.

• The demand for Datadog's monitoring and security tools have been on a rise due to increase in generative AI and cloud migration.

• The company now sees full-year 2026 revenue between $4.30 billion and $4.34 billion, compared to its prior forecast of $4.06 billion to $4.10 billion.

CNA Games

Guess Word
Crack the word, one row at a time

Buzzword
Create words using the given letters

Mini Sudoku
Tiny puzzle, mighty brain teaser

Mini Crossword
Small grid, big challenge

Word Search
Spot as many words as you can
Show More
Show Less

• It also expects full-year adjusted profit between $2.36 and $2.44 per share, compared with its previous expectation of $2.08 to $2.16 per share.

• New York City-headquartered Datadog provides a cloud-based monitoring and analytics platform that can help companies see how their software and servers are performing in one place.

• Its first-quarter revenue grew 32 per cent to $1.01 billion from a year ago, well ahead of estimates of $961.3 million, according to data compiled by LSEG.

• Quarterly adjusted profit came in at 60 cents per share, topping expectations of 51 cents per share.

• "We are helping customers of all sizes and industries deploy modern, cloud-based, AI-enabled solutions," CEO Olivier Pomel said.

• The company sees second-quarter revenue between $1.07 billion and $1.08 billion, well above estimates of $961.3 million.

• Q2 adj profit per share is expected between 57 cents and 59 cents, also above the estimates of 50 cents per share.

• Datadog's customers include companies like Samsung, NASDAQ, Comcast, Shell and PayPal.

Newsletter

Week in Review

Subscribe to our Chief Editor’s Week in Review

Our chief editor shares analysis and picks of the week's biggest news every Saturday.

Sign up for our newsletters

Get our pick of top stories and thought-provoking articles in your inbox

Subscribe here

Get the CNA app

Stay updated with notifications for breaking news and our best stories

Download here

Get WhatsApp alerts

Join our channel for the top reads for the day on your preferred chat app

Join here