As the Q2 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 PagerDuty (NYSE: PD) 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 Q2. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 0.7% above.

Luckily, cloud monitoring stocks have performed well with share prices up 16.6% on average since the latest earnings results.

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 $124.4 million, flat year on year. This print exceeded analysts’ expectations by 0.9%. Overall, it was a strong quarter for the company with accelerating customer growth and a solid beat of analysts’ adjusted operating income estimates.

PagerDuty delivered the slowest revenue growth of the whole group. The company added 126 customers to reach a total of 15,506. Interestingly, the stock is up 24.1% since reporting and currently trades at $15.68.

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

Best Q2: 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 $1.12 billion, up 35.6% year on year, outperforming analysts’ expectations by 3.9%. The business had an exceptional quarter with an impressive beat of analysts’ annual recurring revenue estimates and a solid beat of analysts’ billings estimates.

Datadog delivered the biggest analyst estimate beat, highest guidance raise, and fastest revenue growth in the group. The company added 170 enterprise customers paying more than $100,000 annually to reach a total of 4,720. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 3.6% since reporting. It currently trades at $272.99.

Is now the time to buy Datadog? Access our full analysis of the earnings results here, it’s 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 $554.5 million, up 16.2% year on year, exceeding analysts’ expectations by 0.9%. Still, it was a mixed quarter as it posted a significant miss of analysts’ billings estimates.

Dynatrace delivered the weakest performance against analyst estimates, weakest guidance update, and weakest full-year guidance update among its peers. Interestingly, the stock is up 34.2% since the results and currently trades at $61.33.

Read our full analysis of Dynatrace’s results here.

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 $757.1 million, up 15.9% year on year. This print surpassed analysts’ expectations by 2.6%. It was a very strong quarter as it also produced a solid beat of analysts’ billings estimates and an impressive beat of analysts’ adjusted operating income estimates.

The stock is up 11.8% since reporting and currently trades at $73.09.

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

Market Update

Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.

Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.

By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.