Dynatrace Q3 Revenue Up 18% With $1B Buyback and Raised $2B Guidance
Dynatrace reported Q3 revenue of $515.5 million, up 18% year-over-year, and non-GAAP EPS of $0.44, beating estimates and driving an 8% stock jump. Management raised full-year revenue guidance to $2.01 billion and authorized a $1 billion share repurchase program.
1. Q3 Financial Results
In its third fiscal quarter, Dynatrace posted revenue of $515.5 million, an 18% year-over-year increase, and non-GAAP EPS of $0.44, topping the $0.41 estimate. Shares rallied about 8% in early trading on the beat-and-raise report.
2. Guidance Raise and Share Repurchase
Management lifted full-year revenue guidance to $2.01 billion, surpassing prior outlook and signaling confidence in recurring revenue strength. The board also approved a $1 billion share repurchase plan, replacing the $500 million program, supported by $463 million of trailing 12-month free cash flow.
3. ARR Growth and Product Innovation
Annual Recurring Revenue rose to $1.97 billion, up 20% on a reported basis and 16% in constant currency, with net retention at 111% and 164 new customers averaging $160,000 ARR. Dynatrace expanded its product suite with Dynatrace Intelligence for agentic AI operations and integrated the DevCycle feature-management platform, while log management consumption exceeded $100 million annually.