DDOG

Recently, Datadog reported quarterly revenue above US$1.00 billion for the first time, raised its full-year 2026 revenue outlook, and highlighted accelerating demand for its AI observability and security offerings. The company’s investment in AI-native monitoring tools, security agents, and agentic AI infrastructure partnerships such as Dust appears to be reshaping how enterprises manage increasingly complex AI workloads. We’ll now examine how Datadog’s first US$1.00 billion quarter and raised 2026 guidance influence its existing investment narrative and risk profile. The future of work is here. Discover the 35 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. To own Datadog, you need to believe that unified observability and security will remain mission‑critical as AI and cloud workloads become more complex, and that Datadog can keep translating product adoption into profitable scale. The first US$1.00 billion quarter and higher 2026 revenue guidance reinforce the near term growth catalyst around AI observability, but they also sharpen the key risk: any slowdown or usage optimization by large AI‑native customers could quickly feed through to revenue volatility. The announcement that Datadog broke the US$1.00 billion revenue mark and lifted full‑year 2026 guidance to US$4.30–4.34 billion is the clearest link to this catalyst, because it ties accelerating AI observability demand directly to upgraded topline expectations. It also sits alongside newer AI‑focused launches, such as GPU Monitoring and the Dust partnership, which deepen Datadog’s role in monitoring AI infrastructure and could either reinforce or expose its dependence on a relatively concentrated set of heavy AI spenders. Yet this rapid AI‑driven momentum also brings a less visible risk that investors should be aware of, especially if a few large customers start to... Read the full narrative on Datadog (it's free!) Datadog's narrative projects $5.9 billion revenue and $374.6 million earnings by 2029. This requires 19.9% yearly revenue growth and roughly a $267 million earnings increase from $107.7 million today. Uncover how Datadog's forecasts yield a $181.52 fair value, a 18% downside to its current price. Before this earnings beat, the most optimistic analysts were already assuming revenue could reach about US$7.1 billion by 2029, and saw...

With a short float of 2.71% and upside potential of 21.60%, Cloudflare, Inc. (NYSE:NET) earns a place on our list of the best cloud stocks to buy as Azure growth hits 40%. Cloudflare, Inc. (NYSE:NET)’s first-quarter results came in ahead of expectations, but the market’s reaction told a mixed story. Cloudflare, Inc. (NYSE:NET) had climbed over 30% YTD heading into earnings but pulled back more than 23% since Q1 results on May 7, settling at $197.56 on May 15, 2026. Despite that move, roughly 25 of 37 covering analysts remain bullish on the shares. On May 8, 2026, Bernstein cut its price target to $136 from $146, keeping a “Market Perform” rating, and said the quarter essentially delivered a growth rate consistent with the fourth quarter rather than the acceleration some had hoped for following strong results at AWS and Datadog. Net revenue retention fell to 118%, and while the beat relative to guidance was normal, Bernstein kept a more measured tone. Susquehanna saw it differently. On May 11, 2026, analyst Shyam Patil raised the firm’s price target to $200 from $190, maintaining a “Neutral” rating, and described the quarter as a fine one, with strength particularly visible among large customers. Patil also noted Cloudflare, Inc. (NYSE:NET)’s announcement of a significant headcount reduction as it pivots toward an AI-first operating structure aimed at driving efficiency and productivity, and flagged the more conservative second-quarter guidance as prudent rather than alarming. The company’s first-quarter revenue came in at $639.8 million, well ahead of the $621.9 million estimate, with adjusted earnings of 25 cents per share, beating the 23-cent consensus. Second-quarter revenue was guided at $664 million to $665 million, just below the $665.3 million Wall Street estimate, and adjusted earnings are expected at 27 cents per share . Cloudflare, Inc. (NYSE:NET) is a leading connectivity cloud company that specializes in improving the security, performance, and reliability of websites and applications. While we acknowledge the potential of NET as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stoc...

Datadog’s first quarter results were shaped by broad-based customer demand across both AI-native and traditional enterprise clients. Management attributed the 32% year-over-year revenue acceleration to increased multi-product adoption and the rapid onboarding of large enterprise customers, particularly in AI research and hyperscale technology sectors. CEO Olivier Pomel highlighted that Datadog’s platform is becoming increasingly mission-critical, emphasizing low customer churn and deeper engagement with existing clients through expanded product usage. The company also noted significant wins in consolidating legacy and open-source observability tools, enabling customers to unify their monitoring and security workloads with Datadog’s solutions. Is now the time to buy DDOG? Find out in our full research report (it’s free). Revenue: $1.01 billion vs analyst estimates of $959.6 million (32.2% year-on-year growth, 4.9% beat) Adjusted EPS: $0.60 vs analyst estimates of $0.51 (18.3% beat) Adjusted Operating Income: $223.5 million vs analyst estimates of $204 million (22.2% margin, 9.6% beat) The company lifted its revenue guidance for the full year to $4.32 billion at the midpoint from $4.08 billion, a 5.9% increase Management raised its full-year Adjusted EPS guidance to $2.40 at the midpoint, a 13.2% increase Operating Margin: 0.7%, up from -1.6% in the same quarter last year Customers: 4,550 customers paying more than $100,000 annually Annual Recurring Revenue: $4.23 billion (32.2% year-on-year growth, beat) Billings: $1.03 billion at quarter end, up 37.2% year on year Market Capitalization: $73.08 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Mark Murphy (JPMorgan) asked about the impact of rising code generation on Datadog’s growth. CEO Olivier Pomel explained that increased application complexity and production deployments are driving higher platform usage across both AI-native and traditional customers. Sanjit Singh (Morgan Stanley) questioned the guidance assumptions amidst global economic uncertainty. CFO David Obstler responded that recent trends remain robust across regions and industries, but managemen...

Dynatrace stock fell sharply following the software company’s latest quarterly report as an earnings beat failed to reverse a slide in the stock price. Dynatrace which operates a cloud observability platform, posted fiscal fourth-quarter earnings of 41 cents a share, ahead of the 39 cents analysts had anticipated. Quarterly revenue rose to $532 million from $445 million in the year-ago period and beat analysts’ calls for $521 million.

The market was pleased with the recent earnings report from Datadog, Inc. (NASDAQ:DDOG), despite the profit numbers being soft. Our analysis suggests that investors may have noticed some promising signs beyond the statutory profit figures. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. As finance nerds would already know, the accrual ratio from cashflow is a key measure for assessing how well a company's free cash flow (FCF) matches its profit. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'. That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future". For the year to March 2026, Datadog had an accrual ratio of -5.56. That implies it has very good cash conversion, and that its earnings in the last year actually significantly understate its free cash flow. In fact, it had free cash flow of US$959m in the last year, which was a lot more than its statutory profit of US$135.7m. Datadog's free cash flow improved over the last year, which is generally good to see. However, that's not all there is to consider. The accrual ratio is reflecting the impact of unusual items on statutory profit, at least in part. View our latest analysis for Datadog That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Datadog's profit was reduced by unusual items worth US$2.3m in the last twelve months, and this helped it produce high cash conversion, as reflected by its unusual items. In a scenario where those unusual items included non-cash charges, we'd expect to see a strong accrual ratio, which is exactly what has happened in this case. While...

Dynatrace stock fell amid fiscal Q4 earnings and revenue that topped estimates while a key metric met expectations.

The stock market hit fresh highs as crude oil prices tumbled below $100 on Iran hopes. Earnings were mostly strong, though there were big losers too

Datadog DDOG reported first-quarter 2026 non-GAAP earnings per share (EPS) of 60 cents, which increased 30.4% from the year-ago quarter and exceeded the company's guidance of 49-51 cents. The figure beat the Zacks Consensus Estimate by 20%. The company's revenues of $1.006 billion rose 32% year over year and surpassed the prior guided range of $951-$961 million. The figure beat the consensus mark by 5.18%. This was the first quarter in which Datadog's quarterly revenues crossed the $1-billion mark. Datadog, Inc. price-consensus-eps-surprise-chart | Datadog, Inc. Quote The company ended the first quarter with approximately 33,200 customers, up from about 30,500 in the prior-year period. In the quarter under review, Datadog had about 4,550 customers with an Annualized Run Rate (ARR) of $100,000 or more, up from about 3,770 in the year-ago quarter. These customers generated about 90% of the total ARR. As of the end of the first quarter, 56% of customers used four or more products, up from 51% in the year-ago period. Furthermore, 35% of customers used six or more products, up from 28% a year ago, while 20% used eight or more products, up from 13% in the prior-year quarter. Datadog reported a trailing 12-month net revenue retention rate in the low 120% range in the first quarter, up from approximately 120% in the prior quarter, while gross revenue retention remained stable in the mid-to-high 90% range. Datadog's total ARR surpassed $4 billion in the quarter, and the company delivered an all-time record for the sequential ARR added. New logo annualized bookings also set an all-time record, more than doubling on a year-over-year basis. Of Datadog's 26 products, five generate more than $100 million in ARR, while another three are between $50 million and $100 million in ARR. In the first quarter, non-GAAP gross profit increased 32% year over year, reaching $807.2 million. Datadog's non-GAAP gross margin was 80.2%, declining 10 basis points on a year-over-year basis from 80.3%. Research & development expenses on a non-GAAP basis grew 33% year over year to $300.4 million. Research & development, as a percentage of revenues, expanded 20 basis points to 29.9%. Sales and marketing expenses on a non-GAAP basis rose 31.9% year over year to $235.3 million. Sales and marketing expenses, as a percentage of revenues, contracted nearly 10 basis points to 23.4%. General & adminis...

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A wave of blockbuster earnings in tech is catching a couple software companies, too. Shares in Datadog jumped 31% on Thursday after the company reported 32% year-over-year revenue growth. Cybersecurity provider Fortinet added 20%, after it said it was seeing higher demand for its offerings because of artificial intelligence.

(Bloomberg) -- CoreWeave Inc. shares are on a scorching run in 2026 as demand for computing capacity to power artificial intelligence keeps growing. But now investors want to see some proof that the neo-cloud provider is executing on its ambitious plans. Most Read from Bloomberg Billionaire Duke of Westminster to Sell £700 Million of US Real Estate Assets US Has Opened a Passage Through Hormuz, Central Command Says DOJ Plans Intervention in Trump Supreme Court Carroll Appeal China Asks Banks to Pause New Loans to US-Sanctioned Refiner Sony to Pay Almost $4 Billion for Bieber, Neil Young Catalog The chance arrives when CoreWeave reports earnings after the bell on Thursday. Recent results from the biggest AI spenders like Alphabet Inc. and Meta Platforms Inc. made it clear that the need for computing power is insatiable as capital expenditures continue to rise. Considering the company rents access to AI infrastructure featuring the latest chips from Nvidia Corp., that plays right into its hands. “There is an insane amount of demand for AI compute,” said Tejas Dessai, director of thematic research at Global X ETFs. “The backdrop is extremely positive for CoreWeave.” Investors will be closely monitoring CoreWeave’s revenue acceleration, its outlook for the rest of the year and its backlog heading into 2027, he said. The stock is up 78% this year and a stunning 218% since the Livingston, New Jersey-based company went public in March 2025. The latest rally got going roughly a month ago as investors regained faith in the AI trade and CoreWeave announced deals with Meta, Anthropic PBC and Jane Street Group in quick succession. CoreWeave shares were down as much as 9.1% in intraday trading Thursday after rallying 7.9% on Wednesday. Of the 36 analysts tracked by Bloomberg who follow CoreWeave, 23 have buy ratings on the stock and only two have sells. But their average 12-month price target of $131 is below where the shares closed Wednesday, even though it’s been rising over the past six months. Wall Street expects the company to report revenue of nearly $2 billion in the first quarter, twice what it posted a year ago, and a loss of $1.20 per share, which would be an improvement from a loss of $1.49 a share in the first quarter of 2025. CoreWeave’s revenue backlog was nearly $67 billion as of Dec. 31, and the recent deals should raise its remaining performance obligati...

Dow Jones futures: President Donald Trump says a U.S.-Iran ceasefire is intact despite clashes. Rocket Lab, Cloudflare and IREN are big earnings movers.