Datadog Stock Is Rising on Earnings Beat. What to Know.

Datadog posted revenue of $827 million for the second quarter, up 28% from a year ago. (Dreamstime)

Datadog stock was climbing Thursday after the cloud-monitoring company reported second-quarter earnings that beat expectations.

The company posted adjusted earnings per share of 46 cents for the quarter, above Wall Street’s consensus estimate of 41 cents. Revenue totaled $827 million, up 28% from the year-ago period and surpassing the estimate for $791 million.

Datadog stock was rising 11% in premarket trading Thursday.

The company raised its 2025 revenue guidance to range from $3.312 billion to $3.322 billion, up from a past forecast of $3.215 billion to $3.235 billion. Management also lifted adjusted earnings-per-share guidance to a range of $1.80 to $1.83, up from $1.67 to $1.71.

Datadog joined the S&P 500 on July 9, but the stock has struggled this year, having fallen 4.2% year to date through Wednesday’s close. Thursday’s premarket jump would put the cloud-computing play back in the black for the year.

Write to Nate Wolf at nate.wolf@barrons.com