Dynatrace (DT) stock climbed on Wednesday after the software maker reported fiscal first-quarter earnings and revenue that topped Wall Street targets. The software maker's September-quarter guidance came in above views.
Waltham-Mass.-based Dynatrace reported earnings before the market open. For the quarter ending June 30, Dynatrace earnings were 42 cents a share on an adjusted basis, up 27% from a year earlier. Revenue climbed 20% to $477 million, the company said.
Analysts had estimated profit of 38 cents on revenue of $467.5 million.
Annual recurring revenue, or ARR, is a key financial metric for many software companies. Dynatrace said ARR from subscriptions rose 18% to $1.822 billion vs. estimates of $1.779 billion.
For the current quarter ending Sept. 30, Dynatrace predicted earnings in a range of 40 cents per share to 41 cents per share, in-line with estimates.
The software maker forecast revenue of $486.5 million at the midpoint of guidance, topping estimates of $482 million.
On the stock market today, Dynatrace stock climbed 3.3% to 52.18 in early trades. Shares are below their 50-day and 200-day moving averages after tumbling below those key levels last week. Heading into the Dynatrace earnings report, shares had retreated 5% in 2025.
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.
From a technical view, Dynatrace stock holds a Composite Rating of 64 out of a best-possible 99, according to IBD Stock Check-up. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Meanwhile, Dynatrace stock holds an Accumulation/Distribution Rating of B. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. (A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.)
Further, Dynatrace competes with Datadog (DDOG) and others. Datadog reports earnings on Thursday.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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