Datadog (DDOG) Surpasses Estimates as AI-Driven Cloud Security Demand Surges

Datadog (DDOG) reported fourth-quarter revenue of $953.2 million, 29% higher than the prior year and beating estimates of $916.6 million, with adjusted profit of 59 cents per share, exceeding 55 cents. AI-driven demand for cloud security and monitoring surged, with nearly half of its customers using four or more of its products. The company's stock rose 10% in premarket trading following the results. The rise in generative AI has increased data volume and complexity, driving broader adoption of Datadog's platform. The company delivered over 400 new features in 2025 to support cloud migrations and next-gen AI workloads. Guidance for 2026: revenue $3.98B-$4.00B (vs. $4.11B est.), EPS $2.08-$2.16 (vs. $2.37 est.).