Key Points – Datadog’s Q2 revenue rose 36% to $1.12 billion, exceeding the high end of guidance, while non-AI customer growth accelerated to the high-20% range.
Billings increased 38% and free cash flow reached $279 million. – Customer expansion remained strong, with approximately 33,400 customers and 4,720 customers generating at least $100,000 in ARR
AI adoption and product usage broadened, including more than 750 AI customers and 58% of customers using at least four products. – Datadog renewed a major AI customer in a nine-figure deal but expects that customer’s usage to decline beginning in Q3; the reduction is included in its outlook. The company projects roughly 30% fiscal 2026 revenue growth to $4.45 billion–$4.47 billion. – 5 Tech Stocks Holding Their Ground Through the AI Trade Pullback Datadog (NASDAQ:DDOG) reported second-quarter revenue of $1.12 billion, up 36% from a year earlier and above the high end of its guidance range, as growth accelerated across both AI-focused and non-AI customers. Co-founder and Chief Executive Officer Olivier Pomel said revenue growth among non-AI customers reached the high 20% range year over year, compared with the mid-20% range in the prior quarter and 18% in the year-ago period.
He said the company sees broader adoption of AI driving cloud usage, modernization efforts and demand for its observability, security and analytics platform. – The AI Boom Has a Hidden Winner—And It’s Not NVIDIA “Our broad base of customers, from the most nimble startups to the largest and most established enterprises, are all adopting AI,” Pomel said. Customer Growth and Financial Results Datadog ended the quarter with about 33,400 customers, compared with approximately 31,400 a year earlier. Customers with annual recurring revenue of at least $100,000 totaled about 4,720, up from roughly 3,850 a year ago, and accounted for approximately 91% of ARR. – 3 Most Upgraded Stocks Last Month According to MarketBeat The company reported $1.18 billion…