Datadog shares fall 18% despite Q2 beat and raised outlook

Datadog shares fell nearly 18% on Thursday despite beating second-quarter earnings estimates and raising its full-year outlook, as investors focused on signs of slowing growth. The cloud-monitoring firm reported adjusted earnings of 65 cents per share, above the 58 cents expected, and revenue of $1.12 billion, up 36% year over year. Its third-quarter guidance implied a sequential growth slowdown, triggering profit-taking after a record rally. Datadog raised its full-year profit and revenue forecasts. The stock had gained more than 110% in 2026 before Thursday's drop, leaving little room for disappointment.