As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the cloud monitoring industry, including Datadog (NASDAQ: DDOG) and its peers.

Software is eating the world, increasing organizations’ reliance on digital-only solutions. As more workloads and applications move to the cloud, the reliability of the underlying cloud infrastructure becomes ever more critical and ever more complex. To solve this challenge, companies and their engineering teams have turned to a range of cloud monitoring tools that provide them with the visibility to troubleshoot issues in real-time.

The 4 cloud monitoring stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.7% while next quarter’s revenue guidance was 1.8% above.

Luckily, cloud monitoring stocks have performed well with share prices up 20% on average since the latest earnings results.

Best Q1: Datadog (NASDAQ: DDOG)

Named after a database the founders had to painstakingly look after at their previous company, Datadog (NASDAQ: DDOG) provides a software platform that helps organizations monitor and secure their cloud applications, infrastructure, and services.

Datadog reported revenues of $1.01 billion, up 32.2% year on year. This print exceeded analysts’ expectations by 4.9%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ annual recurring revenue and billings estimates.

"Datadog executed to a strong quarter, with 32% year-over-year revenue growth, $335 million in operating cash flow, and $289 million in free cash flow," said Olivier Pomel, co-founder and CEO of Datadog.

Datadog pulled off the biggest analyst estimate beat, highest guidance raise, and fastest revenue growth of the whole group. The company added 240 enterprise customers paying more than $100,000 annually to reach a total of 4,550. Unsurprisingly, the stock is up 58% since reporting and currently trades at $227.00.

Read why we think that Datadog is one of the best cloud monitoring stocks, our full report is free.

Dynatrace (NYSE: DT)

With its platform processing over 30 trillion pieces of IT performance data daily, Dynatrace (NYSE: DT) provides an AI-powered platform that helps organizations monitor, secure, and optimize their applications and IT infrastructure across cloud environments.

Dynatrace reported revenues of $531.7 million, up 19.4% year on year, outperforming analysts’ expectations by 2.1%. The business had a satisfactory quarter with an impressive beat of analysts’ billings estimates but EPS guidance for next quarter slightly missing analysts’ expectations.

The market seems happy with the results as the stock is up 5.7% since reporting. It currently trades at $41.45.

Is now the time to buy Dynatrace? Access our full analysis of the earnings results here, it’s free.

Slowest Q1: Nutanix (NASDAQ: NTNX)

Originally pioneering hyperconverged infrastructure to break down traditional data center silos, Nutanix (NASDAQ: NTNX) provides a unified software platform that enables organizations to run applications and manage data across private, public, and hybrid cloud environments.

Nutanix reported revenues of $703.1 million, up 10% year on year, exceeding analysts’ expectations by 2.4%. Still, it was a mixed quarter due to its lackluster performance in other areas of the business.

Nutanix delivered the weakest guidance update in the group. The stock is flat since the results and currently trades at $46.80.

Read our full analysis of Nutanix’s results here.

PagerDuty (NYSE: PD)

Born from the frustration of developers being woken up by unprioritized alerts, PagerDuty (NYSE: PD) is a digital operations management platform that helps organizations detect and respond to IT incidents, outages, and other critical issues in real-time.

PagerDuty reported revenues of $121 million, flat year on year. This print topped analysts’ expectations by 1.2%. Zooming out, it was a satisfactory quarter as it also produced accelerating customer growth but EPS guidance for next quarter missing analysts’ expectations significantly.

PagerDuty had the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update among its peers. The company added 29 customers to reach a total of 15,380. The stock is up 15.8% since reporting and currently trades at $8.62.

Read our full, actionable report on PagerDuty here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.