Cloud, AI growth boost Datadog projections

Datadog projected third-quarter revenue ahead of Wall Street expectations, signaling rising demand for its cloud monitoring and security tools as companies increase investment in artificial intelligence, Reuters reports.

The New York-based firm expects revenue between $847 million and $851 million, surpassing analysts' $819.9 million forecast, according to LSEG data. Adjusted profit per share is seen at 44-46 cents, also topping estimates. Shares jumped over 10% in premarket trading following the announcement. Datadog, whose clients include Samsung, Nasdaq, and Comcast, benefits from the global shift to cloud infrastructure and AI adoption, which require robust real-time monitoring and analytics. The company recently unveiled 125 new innovations designed to help enterprises "observe, secure, and act" on complex cloud and AI environments. For the second quarter, Datadog reported $827 million in revenue and adjusted earnings of 46 cents per share, both exceeding expectations. Executives see continued momentum as enterprises prioritize performance, reliability, and security in digital operations.