Synopsis
Cloud security firm Datadog has boosted its annual forecast. The company surpassed Wall Street expectations for its first quarter. Strong demand for its cloud security products, fueled by increasing artificial intelligence adoption, is driving this growth. Datadog now anticipates higher revenue and profit for the full year 2026.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.
