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Datadog Tops Q1 Forecasts and Raises 2026 Outlook

Stronger guidance reflects rising demand for cloud security tied to companies rolling out AI systems.

Overview

  • Datadog beat Wall Street expectations, reporting $1.01 billion in revenue and $0.60 in adjusted earnings per share versus Zacks’ $956.9 million and $0.50 estimates.
  • Executives pointed to brisk uptake of its monitoring and security tools as more customers build and run AI-powered software in the cloud.
  • The company guided second-quarter revenue to $1.07 billion to $1.08 billion with adjusted EPS of $0.57 to $0.59.
  • Datadog raised its full-year view to $4.30 billion to $4.34 billion in revenue and $2.36 to $2.44 in adjusted EPS, up from $4.06 billion to $4.10 billion and $2.08 to $2.16.
  • Shares jumped nearly 29% in premarket trading after the beat and higher outlook.