Datadog Inc. (NASDAQ:DDOG) surged 13.74% on Tuesday, closing at $129.67 after strong revenue performance in 2025. Revenues for the full year increased by 27% to $3.4 billion, and fourth-quarter revenues rose by 29% to $953 million. Net income decreased by 41% to $107.7 million for the year but inched up by 2% to $46.6 million in Q4.

Datadog Inc. (NASDAQ:DDOG) is targeting revenues of $951 million to $961 million with earnings per share of $0.49 to $0.51. For 2026, revenues are projected at $4.06 billion to $4.1 billion with EPS of $2.08 to $2.16. CEO Olivier Pomel looks forward to delivering more AI-powered innovation in the future.

While Datadog Inc. (NASDAQ:DDOG) shows promise as an investment, some AI stocks may offer greater returns with limited downside risk. For more information on a cheap AI stock with significant potential, check out the free report on the best short-term AI stock.

Read more at Yahoo Finance: Datadog Inc. (DDOG) Climbs 13.7% on Earnings Blowout