Overview

* Dynatrace ( DT ) 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 ( DT ) raises FY26 ARR guidance to $2.010 bln - $2.025 bln

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

* Dynatrace ( DT ) 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/Mis Actual Consensu

s s

Estimate

Q2 Beat $494 mln $487.20

Revenue mln (31

Analysts

)

Q2 Beat $0.44 $0.41

Adjusted (31

EPS Analysts

)

Q2 EPS $0.19

Q2 $153 mln

Adjusted

Operatin

g Income

Q2 $1.89

Annual bln

Recurrin

g

Revenue

Q2 $73 mln

Operatin

g Income

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 ( DT ) 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:

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(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.)