FINWIRES · TerminalLIVE
FINWIRES

Datadog is Executing 'Very Well' and End-Market Demand is Inflecting, BofA Says

By

Datadog (DDOG) is executing "very well" and end-market demand is inflecting, with the company's Q2 revenue growth guidance looking "impressive" and Q1 performance suggesting ongoing revenue growth acceleration, BofA Securities said in a Thursday note.

The company's announcement of two deals signed with artificial intelligence labs in "two of the world's largest technology companies" validates thesis that Datadog "solves mission critical and hard problems," BofA said, adding that accelerating foundational AI model usage and newly built specialized enterprise AI models are a tailwind for the company.

Datadog's Q1 results are a positive read for the other pure-play public observability vendors like Dynatrace (DT), while also being a positive signal for Snowflake (SNOW) and MongoDB (MDB) that play on similar themes of AI, digital transformations, and cloud migrations, BofA said.

BofA raised its earnings per share estimate on Datadog to $2.43 from $2.11 for 2026, to $2.66 from $2.35 for 2027, and to $3.06 from $2.65 for 2028.

BofA lifted its price target on the company's stock to $225 from $170 and maintained its buy rating.

Price: $192.14, Change: $+3.41, Percent Change: +1.80%

Related Articles

Wire

ESCO Technologies Fiscal Q2 Adjusted Earnings, Revenue Rise; Shares Fall After Hours

ESCO Technologies (ESE) reported fiscal Q2 adjusted earnings late Thursday of $1.91 per diluted share, up from $1.17 a year earlier.Three analysts polled by FactSet expected $1.84.Net sales in the three months ended March 31 rose to $309.3 million from $231.8 million a year earlier.Three analysts surveyed by FactSet expected $307.9 million.ESCO boosted full-year adjusted EPS guidance to $8 to $8.25 from its February forecast of $7.90 to $8.15. The company maintained its revenue outlook of $1.29 billion to $1.33 billion.Three analysts surveyed by FactSet project EPS of $8.15 on revenue of $1.32 billion.The company kept its quarterly dividend at $0.08 per share, payable July 17 to stockholders of record July 2.ESCO shares fell 6.1% in after-hours trading.

$ESE
Wire

Gen Digital Fiscal Q4 Adjusted Earnings, Revenue Rise; Shares Gain After Hours

Gen Digital (GEN) reported fiscal Q4 adjusted earnings late Thursday of $0.67 per diluted share, up from $0.59 a year earlier.Analysts polled by FactSet expected $0.65.Revenue in the three months ended April 3 rose to $1.28 billion from $1.01 billion a year earlier.Analysts surveyed by FactSet expected $1.25 billion.Gen Digital expects Q1 EPS of $0.68 to $0.70 on revenue of $1.30 billion to $1.325 billion.Analysts polled by FactSet project EPS of $0.68 on revenue of $1.27 billion.The company expects fiscal 2027 EPS of $2.85 to $2.95 on revenue of $5.33 billion to $5.43 billion.Analysts surveyed by FactSet project EPS of $2.85 on revenue of $5.24 billion.Gen Digital shares jumped 9% in after-hours trading.

$GEN
Wire

JFrog Q1 Non-GAAP Earnings, Revenue Rise; Lifts 2026 Guidance

JFrog (FROG) reported Q1 non-GAAP earnings late Thursday of $0.27 per diluted share, up from $0.20 a year earlier.Analysts polled by FactSet expected $0.21.Revenue for the quarter ended March 31 was $154.0 million, up from $122.4 million a year earlier.Analysts surveyed by FactSet expected $147.4 million.For Q2, the company expects non-GAAP EPS of $0.23 to $0.25 on revenue of $154 million to $156 million. Analysts expect $0.21 and $151.7 million, respectively.For 2026, JFrog now expects non-GAAP EPS of $0.93 to $0.97 on revenue of $628 million to $632 million, up from the prior forecast of non-GAAP EPS of $0.88 to $0.92 on revenue of $623 million to $628 million.Analysts expect $0.90 and $627.7 million, respectively.Shares of JFrog rose 15% in after-hours activity.

$FROG