Application performance monitoring software provider Dynatrace (NYSE: DT) will be reporting results this Wednesday before market hours. Here’s what investors should know.
Dynatrace beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $445.2 million, up 16.9% year on year. It was a very strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
Is Dynatrace a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Dynatrace’s revenue to grow 17.1% year on year to $467.5 million, slowing from the 19.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.38 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dynatrace has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.9% on average.
Looking at Dynatrace’s peers in the software development segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Cloudflare delivered year-on-year revenue growth of 27.8%, beating analysts’ expectations by 2.3%, and F5 reported revenues up 12.2%, topping estimates by 3.6%. Cloudflare traded down 3.5% following the results while F5 was up 4.6%.
Read our full analysis of Cloudflare’s results here and F5’s results here.
Debates over possible tariffs and corporate tax adjustments have raised questions about economic stability in 2025. While some of the software development stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3% on average over the last month. Dynatrace is down 8.9% during the same time and is heading into earnings with an average analyst price target of $63.68 (compared to the current share price of $51.61).
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