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

Datadog raised its full-year forecast after beating Wall Street’s first-quarter expectations, citing strong demand for its cloud security products. The company said rising AI adoption is supporting growth, reinforcing both the earnings beat and improved outlook. The update is likely supportive for Datadog shares and sentiment across cloud security/software names.

Analysis

Datadog raised its full-year forecast after beating Wall Street’s first-quarter expectations, citing strong demand for its cloud security products. The company said rising AI adoption is supporting growth, reinforcing both the earnings beat and improved outlook. The update is likely supportive for Datadog shares and sentiment across cloud security/software names.