Dynatrace Q2 revenue beats estimates

Dynatrace,

05/11/2025 11:44

Overview

Dynatrace fiscal Q2 revenue grows 18%, beating analyst expectations

Adjusted EPS for fiscal Q2 beats consensus, driven by AI-powered observability demand

Company raises FY26 guidance, reflecting confidence in future growth

Outlook

Dynatrace raises FY26 ARR guidance to $2.010 bln - $2.025 bln

Company expects Q3 revenue between $503 mln and $508 mln

Dynatrace sees FY26 revenue at $1.985 bln - $1.995 bln

Result Drivers

OBSERVABILITY DEMAND - Growing demand for AI-powered observability solutions driven by large-scale tool consolidations, per CEO Rick McConnell

STRATEGIC COLLABORATIONS - Multi-year collaboration with ServiceNow and integration with Atlassian cited as growth drivers

LARGE DEAL GROWTH - 53% growth in annual contract value from 7-figure deals, all leveraging end-to-end observability

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$494 mln
$487.20 mln (31 Analysts)
Q2 Adjusted EPS
Beat
$0.44
$0.41 (31 Analysts)
Q2 EPS
$0.19
Q2 Adjusted Operating Income
$153 mln
Q2 Annual Recurring Revenue
$1.89 bln
Q2 Operating Income
$73 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 28 "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 $64.00, about 22.5% above its November 4 closing price of $49.63

The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 32 three months ago

Press Release: ID:nBw5Lh1pPa

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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.)