NEW YORK, Feb 10, 2026, 03:01 PM EST — Regular session
- Datadog shares surged roughly 14% following a quarterly earnings beat and an upbeat Q1 revenue forecast.
- Revenue and adjusted profit forecasts for full-year 2026 fall short of Wall Street expectations
- Investors are eyeing Datadog’s Investor Day on Feb. 12 for insights on long-term goals and product updates
Shares of Datadog, Inc. surged roughly 14% in Tuesday afternoon trading following the company’s Q4 earnings beat and a first-quarter revenue forecast that topped Wall Street expectations. The stock last changed hands at $129.88, climbing $15.87, after reaching an intraday high of $136.98.
This move hits a market still jittery over software valuations, as investors struggle to identify which firms can maintain growth amid shifting priorities driven by generative AI. While some software stocks are trying to bounce back after last week’s selloff, Datadog’s results stood out as one of the few clear wins.
Datadog offers “observability” tools—software designed to help businesses detect issues in cloud apps and servers by aggregating logs, traces, and performance data into a single dashboard. Security is playing an increasingly important role in their pitch, as more customers move workloads to public clouds.
The company disclosed Q4 revenue of $953 million, marking a 29% jump from last year, with non-GAAP earnings hitting $0.59 per diluted share. It closed 2025 holding $4.47 billion in cash and marketable securities. Notably, it counted 603 customers generating $1 million or more in annual recurring revenue (ARR), which tracks subscription revenue yearly. CEO Olivier Pomel highlighted that “During 2025, we delivered over 400 new features and capabilities” focused on cloud migration and “next-gen AI.” The company also announced its Investor Day will take place Feb. 12 in New York. Sec
Guidance threw a curveball. Datadog forecasted fiscal 2026 revenue between $4.06 billion and $4.10 billion, with adjusted earnings of $2.08 to $2.16 per share—both falling short of analysts’ estimates—despite first-quarter revenue projections topping expectations.
The mix fuels the stock’s back-and-forth: traders respond to the near-term demand boost, yet longer-term figures hint at slowing growth or management setting an easy target. Either way, it sets the stage for plenty of debate on Thursday.
A risk for bulls is that the surge in AI-driven data growth might not lead to consistent budget increases. If enterprise IT spending slows down or customers clamp down on renewals, Datadog’s “land-and-expand” strategy could quickly lose momentum.
All eyes are on Feb. 12, when management will unveil product roadmaps and long-term goals at Investor Day. Investors will be tuned in, watching closely for any shifts in the 2026 outlook.
