Dynatrace Q1 revenue slightly beats estimates on new customer growth

Dynatrace

05/08/2026 11:43

Overview
US observability software firm's fiscal Q1 revenue rose 16%, slightly beating analyst expectations
Adjusted EPS for fiscal Q1 was $0.48, beating analyst expectations
Company repurchased $275 mln of stock during the quarter

Outlook
Dynatrace now sees fiscal 2027 ARR of $2.359 bln to $2.379 bln, down from prior view
Company expects fiscal 2027 total revenue of $2.306 bln to $2.320 bln, lower than previous outlook
Dynatrace forecasts Q2 revenue of $565 mln to $570 mln and non-GAAP EPS of $0.48 to $0.49

Result Drivers
ENTERPRISE DEMAND - Co said growth was driven by strengthening demand as enterprises expand cloud-native workloads and accelerate AI initiatives
NEW CUSTOMER GROWTH - Dynatrace reported record new logo ARR growth of more than 160% and four consecutive quarters of acceleration in trailing-twelve-month organic net new ARR growth
PRODUCT CONSUMPTION - Co nearly doubled annualized logs consumption in the last two quarters to $200 mln, growing well over 100% year-over-year

Company press release: ID:nBw6svwLqa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
$555 mln
$550.04 mln (33 Analysts)
Q1 Adjusted EPS
Beat
$0.48
$0.45 (34 Analysts)
Q1 EPS
 
$0.12
 
Q1 Adjusted Operating Income
 
$162 mln
 
Q1 Annual Recurring Revenue
 
$2.14 bln
 
Q1 Operating Income
 
$71 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 26 "strong buy" or "buy", 11 "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 $48.00, about 5% above its August 4 closing price of $45.71
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 19 three months ago

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(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.)