Datadog’s Stock Surges 20% on AI-Driven Earnings Beat and Raised Outlook
Datadog shares skyrocketed as much as 20% Thursday after the cloud monitoring firm reported better-than-expected quarterly results fueled by growing demand from artificial intelligence clients. The company posted adjusted earnings of $0.55 per share on revenue of $885.7 million, both exceeding analyst estimates.
The surge makes Datadog the top performer in the S&P 500, with CEO Olivier Pomel noting "strong" growth from AI customers when excluding its largest client. About 4,060 clients now generate over $100,000 in annual recurring revenue—a 16% year-over-year increase.
Datadog raised its full-year guidance to between $2.00-$2.02 in adjusted EPS and $3.386-$3.390 billion in revenue. The results demonstrate how infrastructure providers are capitalizing on the AI boom, even in secondary markets like monitoring and security platforms.
