Dynatrace (DT) Platform Subscription or DPS offerings continue to see "significant momentum," driving its fiscal Q1 beat and increased fiscal 2026 outlook, Wedbush Securities said in a Thursday note.

The company reported fiscal Q1 non-GAAP earnings Wednesday of $0.42 per diluted share, up from $0.33 a year earlier as revenue increased to $477.3 million from $399.2 million. Dynatrace lifted its fiscal 2026 guidance to $1.58 to $1.61 in non-GAAP EPS on revenue of $1.97 billion to $1.99 billion.

According to the investment firm, about 45% of Dynatrace's total customers, representing over 65% of its annual recurring revenue, are now on the DPS platform, increasing from about 40% of its total customers in the previous quarter. DPS expansion leads to faster consumption and increased subscription revenues, Wedbush noted.

In addition, Dynatrace's log management is also seeing increasing demand, with a 36% growth on a quarterly basis, Wedbush said.

Wedbush Securities maintained its outperform rating and $67 price target on Dynatrace.

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