Datadog Inc. shares climbed roughly 12% in pre-market trading after the cloud-monitoring specialist reported second-quarter results that outpaced Wall Street expectations and raised its full-year outlook. Revenue for the three months ended 30 June rose 28% from a year earlier to $827 million. The company posted a GAAP operating loss of $36 million, equal to a −4% margin, while non-GAAP operating income reached $164 million for a 20% margin. Chief Executive Officer Olivier Pomel said the quarter generated $200 million in operating cash flow and $165 million in free cash flow, reflecting continued adoption of the firm’s observability and security platform. Management increased its 2025 revenue and profitability targets, citing stronger customer demand and expanding use cases tied to generative-AI workloads. The latest beat extends a run of steady growth for Datadog and underscores investor appetite for software vendors positioned to capitalise on corporate spending to modernise cloud infrastructure.