Investing.com – Wedbush raised its price target on Datadog stock (NASDAQ:DDOG) to $220 from $190 while maintaining an Outperform rating.
The firm cited the company’s first-quarter fiscal 2026 results, which showed strong performance across all metrics. Revenue surpassed $1 billion in the quarter for the first time, contributing to impressive 27.7% annual revenue growth and a market capitalization of $66.2 billion. According to InvestingPro data, the company maintains an exceptional gross profit margin of nearly 80%.
Wedbush noted accelerating demand for Datadog’s platform approach, with strength across both AI-native and non-AI segments. The firm said this reinforces the company’s mission-critical positioning at the center of cloud migration, digital transformation, and AI adoption.
The higher price target reflects an increased multiple and greater confidence in Datadog’s growth trajectory. Wedbush said the outlook applies to the remainder of 2026 and beyond.
The firm maintained its Outperform rating on the stock following the quarterly results. While analyst sentiment remains bullish, InvestingPro analysis suggests the stock is currently overvalued relative to its Fair Value. For deeper insights, investors can access a comprehensive Pro Research Report on Datadog, one of 1,400+ available reports transforming complex data into actionable intelligence.
In other recent news, Datadog Inc. reported impressive financial results for the first quarter of 2026, exceeding Wall Street’s expectations. The company achieved revenue of $1.07 billion, surpassing analyst estimates compiled by LSEG. Additionally, Datadog’s adjusted earnings per share were reported at $0.51, which also exceeded projections. In another report, Datadog’s earnings per share were noted as $0.60, exceeding the forecasted $0.51 by 17.65%. Revenue in this report reached $1 billion, surpassing the anticipated $959.9 million, marking a 4.18% surprise. These strong earnings results have led to significant interest from investors. The positive financial performance highlights Datadog’s continued growth and market presence.
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