May 7 (Reuters) - Cloud security firm Datadog DDOG.O on Thursday raised its annual forecast after beating Wall Street expectations for first-quarter results, fueled by high demand for its cloud security products amid rising artificial intelligence adoption.

• The company's shares were up nearly 29% in premarket trading.

• The demand for Datadog's monitoring and security tools have been on a rise due to increase in generative AI and cloud migration.

• The company now sees full-year 2026 revenue between $4.30 billion and $4.34 billion, compared to its prior forecast of $4.06 billion to $4.10 billion.

• It also expects full-year adjusted profit between $2.36 and $2.44 per share, compared with its previous expectation of $2.08 to $2.16 per share.

• New York City-headquartered Datadog provides a cloud-based monitoring and analytics platform that can help companies see how their software and servers are performing in one place.

• Its first-quarter revenue grew 32% to $1.01 billion from a year ago, well ahead of estimates of $961.3 million, according to data compiled by LSEG.

• Quarterly adjusted profit came in at 60 cents per share, topping expectations of 51 cents per share.

• "We are helping customers of all sizes and industries deploy modern, cloud-based, AI-enabled solutions," CEO Olivier Pomel said.

• The company sees second-quarter revenue between $1.07 billion and $1.08 billion, well above estimates of $961.3 million.

• Q2 adj profit per share is expected between 57 cents and 59 cents, also above the estimates of 50 cents per share.

• Datadog's customers include companies like Samsung 000810.KS, NASDAQ NDAQ.O, Comcast CMCSA.O, Shell SHEL.L and PayPal PYPL.O.