Ad News Live
Datadog Forecast: Cloud monitoring and cybersecurity provider Datadog boosted its annual outlook on Thursday after posting stronger-than-expected first-quarter earnings.
The company said demand for its cloud security and monitoring platform continued to grow as more businesses increased investments in artificial intelligence and cloud infrastructure.
Datadog has seen rising adoption of its products as companies expand the use of generative AI technologies and move more operations to the cloud.
Following the earnings release, the company’s stock jumped nearly 36% during early market trading.
Investors reacted positively to the updated forecast, which reflected continued momentum in the fast-growing cloud security market.
Datadog raised its financial outlook for fiscal 2026 after reporting strong business momentum driven by demand for cloud monitoring and security services.
The company said it now expects full-year revenue to range between $4.30 billion and $4.34 billion.
That forecast is higher than its previous projection of $4.06 billion to $4.10 billion. Datadog also increased its adjusted profit guidance for the year.
The company now anticipates adjusted earnings between $2.36 and $2.44 per share.
Earlier, it had projected annual adjusted profit in the range of $2.08 to $2.16 per share.
Headquartered in New York City, Datadog operates a cloud-based monitoring and analytics platform used by businesses to track the performance of software applications, servers, and digital infrastructure from a single dashboard.
Datadog reported strong first-quarter financial results as demand for cloud and artificial intelligence-related services continued to accelerate.
The company posted quarterly revenue of $1.01 billion. That marked a 32% increase from the same period a year earlier.
The result surpassed Wall Street estimates of $961.3 million, according to data compiled by LSEG.
Adjusted earnings for the quarter came in at 60 cents per share. Analysts had expected adjusted profit of 51 cents per share.
Chief Executive Officer Olivier Pomel said the company is supporting businesses across multiple industries as they adopt modern cloud-based and AI-powered technologies.
Datadog also issued a strong outlook for the second quarter. The company forecast revenue between $1.07 billion and $1.08 billion for the current quarter.
That projection came in above analyst expectations, reflecting continued momentum in enterprise cloud spending and AI adoption.
Datadog projected stronger-than-expected profitability for the second quarter as demand for its cloud monitoring and security services remained resilient.
The company said adjusted earnings for the current quarter are expected to range between 57 cents and 59 cents per share.
That outlook came in above analyst estimates of 50 cents per share.
Datadog serves a broad range of major global clients across technology, finance, telecommunications, and energy sectors.
Its customer base includes Samsung, Nasdaq, Comcast, Shell, and PayPal.
Visual Disclaimer: This is an AI-generated illustrative portrait. It is used for creative representation and does not depict a real-time event. Created by AD News Live.
Follow Us
