Wedbush analysts have raised their target price on Datadog Inc (NASDAQ:DDOG) to $215 per share from $170 to reflect greater confidence in the company’s growth story.
The cloud software firm posted third quarter 2025 revenue that rose 28% year over year to $885.7 million, topping the $852.8 million Wall Street forecast.
It also generated adjusted earnings per share for the period of $0.55, better than the $0.45 analyst consensus estimate.
As well, Datadog said its revenue for the current quarter is expected to be between $912 million and $916 million, exceeding Wall Street’s projections of $887 million.
“This was yet another positive quarter as Datadog capitalizes on demand for mission-critical use cases around cloud migration and digital transformation projects, especially with AI adoption creating greater demand for end-to-end data observability offerings,” the Wedbush analysts wrote in a note to clients on Thursday.
They added that Datadog continues to experience increasing demand for its platform approach for cloud migration and digital transformation capabilities, with more AI and non-AI customers gaining value from the company’s platform.
Datadog shares surged 21% to $187.93 in midday trading on Thursday.