Datadog Inc. surged 31.3% on Thursday after the observability platform reported first-quarter 2026 revenue above $1 billion for the first time, triggering a broad rally in cloud software and AI data infrastructure stocks even as semiconductor names retreated. The S&P 500 closed at 7,337.11, down 0.38%, and the Nasdaq Composite ended at 25,806.20, off 0.13%; the Philadelphia Semiconductor ETF (SOXX) fell 2.9% as Arm Holdings reversed sharply on post-earnings selling and chip-equipment names gave back recent gains, with U.S.-Iran tensions adding a risk premium after strikes on Qeshm Port rattled markets.
Today's biggest movers
| Ticker | Close | Day | 1mo | YTD |
|---|---|---|---|---|
| $DDOG | $188.73 | +31.33% | +73.18% | +41.09% |
| $MDB | $293.42 | +10.62% | +27.86% | -26.58% |
| $SNOW | $153.72 | +10.00% | +16.24% | -29.07% |
| $CRWD | $505.72 | +8.04% | +28.13% | +11.50% |
| $PANW | $196.53 | +7.00% | +17.69% | +9.57% |
| $ARM | $213.31 | -10.11% | +42.40% | +85.92% |
| $AMAT | $410.64 | -4.19% | +3.23% | +52.73% |
| $LRCX | $286.52 | -3.58% | +10.73% | +54.83% |
| $DELL | $230.27 | -3.57% | +26.90% | +80.18% |
| $AMD | $408.46 | -3.07% | +72.61% | +82.78% |
Datadog posts first billion-dollar quarter, raises 2026 outlook
Datadog Inc. (NASDAQ: DDOG) closed at $188.73, up 31.3%, after the company reported Q1 2026 revenue of $1.006 billion, a 32.2% increase year-over-year that topped the Wall Street consensus of $959.6 million. Adjusted earnings per share of $0.60 exceeded estimates of $0.51 by 17.6%.
The company raised its full-year 2026 revenue guidance to $4.32 billion at the midpoint, up from a prior forecast of $4.08 billion, and lifted its adjusted EPS forecast to $2.40. The number of customers spending at least $100,000 annually expanded to approximately 4,550, up from 3,770 a year ago, as enterprises deepened investment in AI workload monitoring. Management cited the growing importance of AI observability as the primary growth driver, noting that enterprises running large language model workloads increasingly require dedicated infrastructure to monitor inference costs, latency, and model behavior. Guggenheim raised its price target on DDOG to $225 following the report.
Arm Holdings slides 10% despite a record quarter
Arm Holdings plc (NASDAQ: ARM) fell 10.1% to $213.31, reversing gains from the prior session, despite reporting Q4 fiscal 2026 results that beat analyst estimates on every key metric. Revenue was $1.49 billion, up 20% year-over-year and a quarterly record, while adjusted EPS of $0.60 exceeded the $0.54 consensus. Licensing revenue of $819 million, up 29%, reflected demand for Arm's next-generation compute platform; royalty revenue of $671 million, up 11%, was led by cloud AI, edge AI, and physical AI segments, with data center royalty revenue more than doubling year-over-year.
Full-year fiscal 2026 revenue reached $4.92 billion, up 23%, marking the third consecutive year of greater-than-20% growth since the company's 2023 listing. Investors nevertheless sold into the strength, with the stock giving back a roughly equivalent gain from the prior day; concerns over smartphone market weakness weighed on the outlook for royalty volumes in the near term, even as cloud and AI royalties continue to expand.