Back to top

Image: Bigstock

Here's What Key Metrics Tell Us About Dynatrace (DT) Q3 Earnings

Read MoreHide Full Article

Dynatrace (DT - Free Report) reported $515.47 million in revenue for the quarter ended December 2025, representing a year-over-year increase of 18.2%. EPS of $0.44 for the same period compares to $0.37 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $505.93 million, representing a surprise of +1.89%. The company delivered an EPS surprise of +6.87%, with the consensus EPS estimate being $0.41.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Dynatrace performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
  • Annual Recurring Revenue (ARR)- Total: $1.97 billion versus $1.95 billion estimated by nine analysts on average.
  • Revenues- Services: $22.1 million compared to the $21.91 million average estimate based on 10 analysts. The reported number represents a change of +16.6% year over year.
  • Revenues- Subscriptions: $493.37 million compared to the $484.01 million average estimate based on 10 analysts. The reported number represents a change of +18.3% year over year.
  • Gross profit- Services: $0.96 million versus the two-analyst average estimate of $-0.51 million.
  • Gross profit- Subscriptions: $419.54 million compared to the $416.69 million average estimate based on two analysts.

View all Key Company Metrics for Dynatrace here>>>

Shares of Dynatrace have returned -20.3% over the past month versus the Zacks S&P 500 composite's -0.2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in