Datadog shares reached record levels above $200 on May 18, 2026. The stock posted a gain of over 50% during the month of May alone.
The surge follows a first-quarter 2026 earnings report released on May 7. Revenue grew 32.1% year-over-year to exceed $1 billion. Adjusted earnings per share rose 30% to $0.60.
Management increased full-year guidance, prompting numerous analyst price target hikes. The company also secured FedRAMP High certification from the U.S. federal government. This status enables Datadog to manage sensitive data for federal agencies. Market performance reflects a widening gap between Datadog and competitors in the AI and observability space.