Datadog raises annual forecast on strong cloud security demand; shares up 29%

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 29% in premarket ‌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.

​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% 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.