Datadog, Inc. (NASDAQ: DDOG) reported fourth-quarter earnings that exceeded analyst expectations, sending shares soaring more than 13% in premarket trading as investors reacted to the cloud monitoring company's strong results and upbeat near-term revenue guidance.

The AI-powered observability platform posted adjusted earnings per share of $0.59 for the quarter, beating analyst estimates of $0.55. Revenue climbed 29% year over year to $953 million, well above the consensus forecast of $917.01 million.

Customer growth remained robust, with 603 customers generating annual recurring revenue of $1 million or more, up 31% from 462 customers a year earlier.

Datadog guided for first-quarter revenue of $951 million to $961 million, exceeding analyst expectations of $935 million. However, its first-quarter adjusted EPS guidance of $0.49 to $0.51 fell short of the $0.54 consensus estimate.

For fiscal year 2026, the company projected revenue of $4.06 billion to $4.10 billion, slightly below the analyst consensus of $4.11 billion. Datadog also forecast adjusted EPS of $2.08 to $2.16 for the year, compared with expectations of $2.41.