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Investing.com -- Dynatrace (NYSE:DT) shares surged more than 10% premarket on Wednesday after the company’s latest quarterly earnings release topped consensus expectations.
The company reported fourth quarter earnings of $0.33 per share, $0.03 better than the analyst consensus estimate of $0.30. Meanwhile, revenue for the quarter came in at $445 million, also above the consensus estimate of $434.96 million and representing a 17% increase YoY, or 19% on a constant currency basis.
Subscription revenue, a key metric for the company, grew 18% YoY to $423.6 million, or 20% on a constant currency basis. Dynatrace’s total annual recurring revenue (ARR) reached $1.73 billion, up 15% YoY, or 17% in constant currency.
"Dynatrace delivered a strong finish to fiscal 2025. Our fourth quarter results exceeded guidance on all of our key operating metrics, fueled by broad consumption growth across the platform," said Rick McConnell, CEO of Dynatrace.
Looking ahead, Dynatrace provided an optimistic outlook for fiscal 2026. The company expects first-quarter revenue between $465 million and $470 million, above the consensus estimate of $454.2 million. Q1 2026 EPS is seen between $0.37-$0.38, above the consensus of $0.35.
For the full fiscal year, Dynatrace projects revenue of $1.95 billion to $1.965 billion, surpassing analyst expectations of $1.935 billion, while EPS is seen between $1.56 and $1.59, versus the consensus of $1.53.