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Datadog Shares Surge 23% After Revenue Beat and Strong AI Demand

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Datadog shares soared 23% on Thursday, marking the company’s second-best trading day ever, after the cloud software firm posted third-quarter results that exceeded Wall Street expectations and projected robust growth for the final quarter of the year.

The New York-based company reported $885.7 million in Q3 revenue, up 28% year-over-year and well above analyst estimates of $852.8 million, according to LSEG data. For the current quarter, Datadog forecasts between $912 million and $916 million in revenue, surpassing Wall Street’s $887 million projection.

Adjusted earnings reached 55 cents per share, topping FactSet estimates of 45 cents. The company also recorded net income of $33.9 million, or 10 cents per share, compared to $51.7 million, or 14 cents, a year earlier.

CEO Olivier Pomel credited the company’s momentum to continued innovation in artificial intelligence (AI) and cloud security tools. “The Datadog R&D team is innovating rapidly to help our customers solve problems in the AI space,” he said in a statement.

Datadog has rolled out a series of AI-focused products this year, including Bits AI Agents for SRE, which can automatically investigate system alerts and generate response drafts, and expanded features for LLM Observability, designed to monitor large language models. The firm also unveiled its MCP Server, which connects AI agents to enterprise data sources, and TOTO, its proprietary foundation model.

The company said the number of customers generating over $100,000 in annual recurring revenue rose 16% in the quarter, signaling sustained enterprise adoption.

Salesforce shares jump as $60 billion forecast boosts investor confidence

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Salesforce shares jump as $60 billion forecast boosts investor confidence

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Salesforce shares rose more than 6% in premarket trading on Thursday after the company projected over $60 billion in revenue by 2030, easing investor concerns over slowing growth amid rising competition from AI-powered tools.

The optimistic forecast, announced at Salesforce’s Dreamforce event, signals a strong recovery for the Marc Benioff-led firm, which earlier this year reported its first revenue decline in nearly three years. The projection excludes the impact of Salesforce’s planned $8 billion acquisition of Informatica, expected to close in the first half of 2026.

The deal will strengthen Salesforce’s artificial intelligence capabilities, integrating Informatica’s data management and governance tools into its cloud ecosystem. Analysts said the improved outlook and a $7 billion share buyback plan reflect management’s “confidence in durable free cash flow and sustained bookings growth.”

J.P. Morgan analysts noted that the new forecast could “shift the narrative toward sustainable double-digit growth,” while Jefferies said Salesforce’s expanding margins could bring it in line with other large-cap peers by the end of the decade.

Salesforce has been rapidly embedding AI partnerships into its platform, expanding collaborations with OpenAI and Anthropic to enhance its Agentforce 360 system. The company has also pledged to invest $15 billion in San Francisco over the next five years to drive AI adoption across its services.

Autodesk Boosts Fiscal 2026 Outlook on Strong Cloud and AI-Driven Software Demand

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Autodesk Inc. raised its fiscal 2026 revenue and earnings forecast on Thursday, citing continued strong demand for its cloud-based design and engineering software across sectors such as architecture, engineering, construction, manufacturing, and media. The company’s shares rose about 2% in extended trading following the announcement.

Autodesk has also seen an uptick in AI-driven customer spending, aligning with its strategic pivot to enhance cloud infrastructure and integrate artificial intelligence into its software tools.

“We have not seen changes in overall business momentum when compared to recent quarters,” said CFO Janesh Moorjani.

CEO Andrew Anagnost added that Autodesk is prioritizing cloud, platform development, and AI investments to drive higher margins and long-term growth.

Updated Fiscal 2026 Outlook:

  • Revenue:
    Raised to $6.93B–$7.00B (previously $6.90B–$6.97B)

  • Adjusted EPS:
    Raised to $9.50–$9.73 (from $9.34–$9.67)

  • Q2 Revenue Forecast:
    $1.72B–$1.73B, ahead of LSEG consensus estimate of $1.70B

Q1 Financial Highlights:

  • Revenue:
    $1.63 billion, beating estimates of $1.61 billion

  • Outlook:
    Company signals steady momentum, buoyed by enterprise renewals and broad industry adoption

Strategic Moves & Recent Developments:

  • In February, Autodesk announced a 9% workforce reduction to reallocate resources into AI and cloud technologies

  • Resolved an activist investor battle with Starboard Value, agreeing to add two new board members amid scrutiny over operating margins

  • Reaffirmed focus on margin expansion, despite increased AI investment costs

Industry Context:

Autodesk’s cloud-first strategy and continued push into AI position it competitively against peers like PTC, Bentley Systems, and Dassault Systèmes, as enterprises across the globe digitize design, simulation, and construction workflows.