-- Datadog (DDOG) raised its full-year outlook on Thursday after the software maker posted first-quarter results that topped Wall Street expectations.
The company lifted its 2026 adjusted earnings forecast to $2.36 to $2.44 a share on revenue of $4.3 billion to $4.34 billion. The previous outlook was EPS of $2.08 to $2.16 on revenue of $4.06 billion to $4.1 billion. Analysts surveyed by FactSet expect non-GAAP EPS of $2.16 on revenue of $4.4 billion.
The stock jumped 31% in Thursday trading. The shares have climbed 38% this year.
"There is no change to our overall view that digital transformation and cloud migration are long-term secular growth drivers for our business, but we now have an additional secular growth driver with AI," CEO Olivier Pomel said on the earnings call, according to a FactSet transcript.
In the first quarter, adjusted EPS rose to $0.60 from $0.46, beating the consensus estimate of $0.51. Revenue in the three months ended March 31 climbed 32% to $1.01 billion, ahead of expectations for $960.1 million.
Billings advanced 37% to $1.03 billion, and remaining performance obligations surged 51% to $3.48 billion, Chief Financial Officer David Obstler said on the call.
"Our growth accelerated in each month of Q1, and we see a continuation of these healthy growth trends in April," Obstler said.
In the second quarter, Datadog expects adjusted EPS of $0.57 to $0.59 on revenue of $1.07 billion to $1.08 billion. Analysts project non-GAAP EPS of $0.50 on revenue of $1.02 billion.
Price: $187.61, Change: $+43.90, Percent Change: +30.54%