By Mackenzie Tatananni

Dynatrace stock was falling following the software company's latest earnings report as an earnings beat failed to reverse an extensive slide in the stock price.

Dynatrace, which operates a cloud observability platform, posted fiscal fourth-quarter earnings of 41 cents a share, ahead of the 39 cents analysts had anticipated. Quarterly revenue rose to $532 million from $445 million in the year-ago period and beat analysts' calls for $521 million.

Subscription-based annual recurring revenue, a key performance metric for many software companies, rose 18% to $2.054, a hair below Wall Street's $2.058 billion forecast.

The company's outlook for the fiscal year narrowly cleared estimates. Dynatrace sees earnings of $1.93 to $1.95 a share versus the FactSet consensus of $1.91. Revenue is projected at $2.317 billion to $2.335 billion compared with analysts' calls for $2.305 billion. The company also is targeting subscription ARR in a range of $2.382 billion to $2.402 billion, slightly above estimates of $2.363 billion.

Dynatrace stock slid 5.6% in premarket trading Wednesday. Futures tracking the S&P 500 and Nasdaq Composite traded modestly higher.

Heading into Wednesday's session, Dynatrace had lost 9.5% this year amid broader weakness in tech stocks, lagging behind the broader market.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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May 13, 2026 07:30 ET (11:30 GMT)

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