Brief: Dynatrace Q1 Adjusted EPS USD 0.42 Vs. IBES Estimate USD 0.38

Dynatrace,

06/08/2025 11:30

Overview

Dynatrace fiscal Q1 rev grows 20% yr/yr, beating analyst expectations, per LSEG data

Adjusted EPS for fiscal Q1 beats consensus, driven by expansion deals

Co repurchased $45 mln worth of shares under buyback program

Outlook

Dynatrace sees Q2 revenue at $484 mln to $489 mln

Company expects Q2 subscription revenue between $464 mln and $469 mln

Company sees Q2 Non-GAAP EPS of $0.40 - $0.41

Dynatrace raises full-year revenue forefcast to $1.970 bln to $1.985 bln

Company anticipates full-year subscription revenue of $1.884 bln to $1.899 bln

Result Drivers

EXPANSION DEALS - 12 expansion deals over $1 mln in ACV, 50% with significant Log Management deployments, per CEO Rick McConnell

SUBSCRIPTION MODEL - Over 45% of customer base and 65% of ARR now using Dynatrace Platform Subscription licensing model

AI PLATFORM - 3rd generation platform with Grail core driving demand due to cloud modernization and AI trends

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$477 mln
$467.10 mln (30 Analysts)
Q1 Adjusted EPS
Beat
$0.42
$0.38 (30 Analysts)
Q1 EPS
$0.16
Q1 Adjusted Operating Income
$143 mln
Q1 Annual Recurring Revenue
$1.82 bln
Q1 Operating Income
$62 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 26 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for Dynatrace Inc is $64.50, about 21.7% above its August 5 closing price of $50.53

The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 30 three months ago

Press Release: ID:nBwbVVlYWa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)