Back to News
Feb 10, 2026 12:50 PM

Datadog Stock Surges 16% As AI 'Cloud Migration' Drives Record Q4 Revenue

Datadog Inc (NASDAQ:DDOG) stock climbed after it reported its quarterly results on Tuesday as the growing adoption of artificial intelligence fueled stronger demand for its cloud security products.

• Why is DDOG stock surging?

The software-as-a-service (SaaS) platform’s fiscal fourth-quarter revenue increased 29% year-over-year to $953.19 million, beating the analyst consensus estimate of $916.58 million.

Adjusted EPS of 59 cents beat the analyst consensus estimate of 56 cents.  As of Dec. 31, Datadog had 4,310 customers with an ARR of $100,000 or more, an increase of 19% Y/Y.

The adjusted gross margin declined by 100 bps ...