--- title: "Datadog Rips Higher As AI Customers Fuel Revenue Acceleration" type: "News" locale: "en" url: "https://longbridge.com/en/news/285750522.md" description: "Datadog's stock surged after reporting strong Q1 results, with revenues growing 32% year-on-year to $1.006 billion, surpassing expectations. Analysts from Guggenheim, KeyBanc, Needham, and Rosenblatt maintained Buy ratings and raised price targets to between $220 and $225, citing robust growth in AI-native revenue. The company anticipates Q2 revenues of $1.07-$1.08 billion, indicating continued strong demand. Datadog's AI-related revenue reached $133 million, with significant contributions from major tech firms. Overall, analysts project sustained growth, with Datadog's shares rising 3.12% to $194.62." datetime: "2026-05-08T15:34:12.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285750522.md) - [en](https://longbridge.com/en/news/285750522.md) - [zh-HK](https://longbridge.com/zh-HK/news/285750522.md) --- # Datadog Rips Higher As AI Customers Fuel Revenue Acceleration Shares of **Datadog Inc (NASDAQ:DDOG)** rallied in early trading on Thursday after the company reported upbeat first-quarter results. Here are the key analyst insights: - Guggenheim Securities analyst Howard Ma maintained a Buy rating, while raising the price target from $175 to $225. - KeyBanc Capital Markets analyst Eric Heath reiterated an Overweight rating, while lifting the price target from $155 to $225. - Needham analyst Mike Cikos reaffirmed a Buy rating, while taking the price target higher from $155 to $225. - Rosenblatt Securities analyst Blair Abernethy maintained a Buy rating, while raising the price target from $178 to $220. **Check out other analyst stock ratings**. **Guggenheim Securities:** Datadog's total revenues grew 32% year-on-year to $1.006 billion. They topped the consensus of $960 million, with management citing "broad-based strength.” Ma estimates total AI-native revenue at $133 million for the quarter, including around $88 million from OpenAI, up more than 90% year-on-year, and $45 million from other AI natives, up 240%. Datadog reported record sequential ARR addition, with management reporting a seven-figure and an eight-figure annualized AI deal with two of the world’s largest technology companies, the analyst stated. "We see Datadog ultimately growing 31% this year, including at least 34% in 2Q," he further wrote. **KeyBanc Capital Markets:** Datadog generated strong revenue acceleration driven by both AI-native and non-AI customers, Heath said. He cited three main positives: - The company's increasing relevance with AI-natives customers - The world's most advanced AI companies are choosing Datadog instead of developing solutions in-house or moving to a low-cost competitor - AI training workloads being an additional market opportunity - 3x sequential growth in spans from AI apps indicates that AI is moving into production with traditional enterprise and is being monitored Management guided to second-quarter revenues of $1.07-$1.08 billion, higher than consensus of $993 million and representing 7% sequential growth "well above the typical 3% q/q growth guide," the analyst further wrote. **Needham:** Datadog's second-quarter guidance reflects around 30% year-on-year revenue growth at the midpoint, suggesting "sustained trends and strong bookings," Cikos said. Highlighting strength among both AI-native and non-AI customers, the analyst mentioned that: - Datadog won two large contracts during the quarter with the AI research divisions at two of the world’s leading technology companies. The AI-native customer cohort includes 22 customers who spend over $1 million annually and 5 who spend over $10 million annually. - Datadog’s core non-AI customer cohort re-accelerated to mid-20% year-on-year growth. **Rosenblatt Securities:** Datadog's bookings grew 29% year-on-year to $1.025 billion. The company signed both large and small deals during the quarter, Abernethy said. The strong momentum continued in April. The company's second-quarter revenue outlook suggested around 30% year-on-year growth, he added. The company guided to 2026 revenue growth guidance of 25%-27%, higher than consensus of 20%, but implying a significant slowdown in the second half of the year, the analyst stated. The guidance appears "somewhat conservative, in our view," he further wrote. **BofA Securities:** Datadog reported strong first-quarter results and announced a second-quarter revenue growth outlook that "is equally impressive," Ikeda said. The recent outperformance suggests that revenue growth acceleration could continue, he added. "Datadog is executing very well and end-market demand is inflecting," the analyst wrote. **DDOG Price Action:** Shares of Datadog had risen by 3.12% to $194.62 at the time of publication on Friday. ### Related Stocks - [DDOG.US](https://longbridge.com/en/quote/DDOG.US.md) - [DOGD.US](https://longbridge.com/en/quote/DOGD.US.md) - [OpenAI.NA](https://longbridge.com/en/quote/OpenAI.NA.md) ## Related News & Research - [Datadog CTO Alexis Le-Quoc disposes 43,224 shares for $8.97 million](https://longbridge.com/en/news/287116485.md) - [17:32 ETStardog Names Navin Sharma Chief Product Officer to Lead Next Phase of Semantic AI Innovation](https://longbridge.com/en/news/286000774.md) - [AI face is taking over — and driving plastic surgeons crazy](https://longbridge.com/en/news/286641783.md) - [How Beaten-Down Tempus AI Stock Offers a Lottery Ticket for Traders Here](https://longbridge.com/en/news/286786866.md) - [Key facts: 5K+ Customers on Dell AI Factory; NVIDIA OpenShell, AI‑Q 2.0](https://longbridge.com/en/news/286869805.md)