Datadog stock jumped on Thursday after the enterprise software maker reported second-quarter earnings and revenue that topped Wall Street estimates while September quarter sales guidance came in well above expectations. Datadog raised 2025 revenue guidance.
New York-based Datadog reported earnings before the market open. Datadog earnings for the June quarter came in 46 cents per share on an adjusted basis, up about 6% from a year earlier. The enterprise software maker's revenue climbed 28% to $827 million.
Meanwhile, analysts expected Datadog to report profit of 41 cents a share on revenue of $791 million.
For the current quarter ending in September, Datadog forecast revenue of $849 million at the midpoint of guidance. Wall Street analysts modeled sales of $820 million.
Datadog raised 2025 revenue guidance from $3.215 billion-$3.235 billion (20.5% growth at the midpoint) to $3.312-$3.322 billion (23.5% growth).
Datadog Stock Rises On S&P 500 News
On the stock market today, Datadog stock climbed over 11% to 152.50 in early trading, after rebounding from the 50-day line on Wednesday. Shares have been consolidating since vaulting higher in early July on news that Datadog would join the S&P 500 index. Clearing that consolidation, which could be viewed as a handle to an enormous base, would offer an early entry. The buy point is 157.38.
Heading into the Datadog earnings report, the software stock had retreated 6% in 2025.
Started in 2010, Datadog operates a monitoring and analytics (observability) platform for software developers and information technology departments. Datadog has a partnership with Amazon Web Services, the cloud computing unit of Amazon.com.
Heading into the Datadog earnings report, Wall Street worries over the software maker's relationship with big customer OpenAI pressured shares. OpenAI is a leader in building generative artificial intelligence training models. While OpenAI is currently a Datadog customer, it's apparently building its own, in-house observability tools platform.
Datadog Stock Technical Ratings
Also, Amazon's disappointing Q2 results were an overhang on Datadog stock.
Also, Datadog stock holds a Composite Rating of 86 out of a best-possible 99, according to IBD Stock Checkup.
But Datadog stock holds an Accumulation/Distribution Rating of E. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. (A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.)
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