Dynatrace climbed Wednesday reporting fiscal fourth-quarter earnings and revenue that topped Wall Street targets. The software maker's fiscal 2026 guidance came in above views.
Waltham-Mass.-based Dynatrace reported earnings before the market open.
For the quarter ending March 31, Dynatrace earnings were 33 cents a share on an adjusted basis, up 10% from a year earlier. Revenue climbed 17% to $445 million, the company said.
Dynatrace Earnings
Analysts had estimated profit of 30 cents on revenue of $434.7 million.
Annual recurring revenue, or ARR, is a key financial metric for many software companies. Dynatrace said Q4 ARR from subscriptions rose 15% to $1.734 billion vs. estimates of $1.710 billion.
For full fiscal 2026, Dynatrace predicted earnings in a range of $1.56-$1.59 per share. Analysts had projected adjusted EPS of $1.54 for Dynatrace stock.
The software maker forecast revenue of $1.957 billion at the midpoint of guidance, above estimates of $1.931 billion. Dynatrace predicted ARR in a range of $1.975 billion to $1.990 billion, above estimates of $1.968 billion.
"Management is excited about the benefits of go-to-market changes as they noted large customer pipelines are up 45%," said RBC Capital analyst Matthew Hedberg in a report.
The software maker's computer network monitoring tools measure and analyze the performance of business-critical applications. In the "observability" market, Dynatrace and others also monitor application performance over cloud-computing infrastructure.
Dynatrace Stock Nears 200-Day Average
On the stock market today, Dynatrace stock rose 4.6% to 52.86 in morning trades. Shares are nearing their 200-day moving average after reclaiming their 50-day line last week.
Heading into the Dynatrace earnings report, shares had retreated 7% in 2025.
Also, Dynatrace stock owned a Relative Strength Rating of 35 out of a best-possible 99, according to IBD Stock Checkup.
Further, Dynatrace competes with Datadog and others.
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