NYSE$DT

Dynatrace Inc · Q3 2025 earnings

Q3 2025 earnings · · Before market open · Investor relations

Briefing

Dynatrace's Q3 2025 financial results surpassed expectations, driven by strong ARR and subscription revenue growth.

Dynatrace reported strong third-quarter results, exceeding guidance across all key operating metrics. The company's ARR grew by 18% on a constant currency basis, and subscription revenue increased by 21% on the same basis. Dynatrace achieved a GAAP operating margin of 11% and a non-GAAP operating margin of 30%.

  • ARR increased by 16%, or 18% on a constant currency basis, reaching $1,647 million.
  • Total revenue grew by 19%, or 20% on a constant currency basis, totaling $436 million.
  • Subscription revenue increased by 20%, or 21% on a constant currency basis, reaching $417 million.
  • GAAP EPS was $1.191, and Non-GAAP EPS was $0.37 on a dilutive basis.

Headline financials

Total Revenue

$436M

Previous: $365M+19.5%
EPS (adj)

$0.37

Previous: $0.14+164.3%
Non-GAAP Operating Margin

30.0%

No prior period
Free Cash Flow Margin

9.0%

No prior period
GAAP Operating Margin

11.0%

No prior period
GAAP Net Income Per Share - Diluted

$1.19

No prior period
Non-GAAP Net Income Per Share - Diluted

$0.37

No prior period
Net Cash Provided by Operating Activities as a Percent of Revenue

10.0%

No prior period
Capital Expenditures

-$11.5M

Previous: -$16.7M+30.7%
Net Income

$362M

Previous: $42.7M+747.4%
Operating Income

$47.5M

Previous: $35.7M+32.9%
Gross Profit

$354M

Previous: $297M+19.0%
R&D Expense

$98.3M

Previous: $80.1M+22.8%
Stock-Based Comp

$72.1M

Previous: $54.8M+31.6%

Revenue & EPS history

Dynatrace · Revenue · Quarterly

$436M

Q3 2025+19.5%vs Q3 2024
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Dynatrace · $352M total across 2 segments · Q2 2024

  • Subscription
    $334M+28.0%
  • Service
    $17.2M-4.5%

Forward guidance

Dynatrace is issuing guidance for the fourth quarter and increasing its previous guidance for full year fiscal 2025.

Tailwinds

  • Total revenue for Q4 is expected to be $432 - $437 million (as reported growth of 13% - 15%).
  • Subscription revenue for Q4 is expected to be $410 - $415 million (as reported growth of 14% - 15%).
  • Non-GAAP income from operations for Q4 is expected to be $104 - $110 million.
  • Non-GAAP net income for Q4 is expected to be $88 - $93 million.
  • ARR is expected to be $1,705 - $1,715 million (as reported growth of 13% - 14%) for fiscal year 2025.

Headwinds

  • Foreign exchange is expected to be a headwind of approximately $38 million on ARR for fiscal 2025.
  • Foreign exchange is expected to be a headwind of approximately $17 million on revenue for fiscal 2025.
  • The guidance excludes the impact of any share repurchases during the fourth quarter of fiscal 2025.
  • ARR prior guidance was $1,720 - $1,735 million, current guidance is $1,705 - $1,715 million.
  • Prior total revenue guidance was $1,665 - $1,675 million, current guidance is $1,686 - $1,691 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2025

Historical avgQ3 2025

+1.6%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+4.2%

Avg return

30 days after

57%

16 / 28 earnings

Positive

+20.5%

Q3 2023

Best reaction

-21.8%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-15.1%+1.6%+4.0%
Q3 2026+7.3%+10.4%+11.5%
Q2 2026-4.3%-5.9%-10.4%
Q1 2026-0.1%-8.9%-1.0%
Q4 2025+6.0%+5.4%+4.9%
Q3 2025+0.7%+3.4%-0.2%
Q2 2025-6.4%-5.4%+3.2%
Q1 2025+16.8%+16.1%+23.9%
Q4 2024+4.4%+4.2%-1.1%
Q3 2024-11.3%-14.2%-22.8%
Q2 2024+7.3%+9.8%+23.5%
Q1 2024-13.5%-12.5%-12.7%
Q4 2023+5.1%+5.0%+9.4%
Q3 2023+20.5%+20.6%+12.8%
Q2 2023-2.7%-1.2%+14.3%
Q1 2023+6.3%+9.7%-4.1%
Q4 2022+12.5%+15.8%+17.2%
Q3 2022-21.8%-16.0%-26.4%
Q2 2022-4.6%-4.9%-19.0%
Q1 2022+2.0%+2.6%+7.2%
Q4 2021-1.9%+2.8%+22.2%
Q3 2021+17.6%+27.5%+13.4%
Q2 2021-11.4%-15.4%-5.8%
Q1 2021+4.0%+1.6%+6.2%
Q4 2020-1.7%-1.4%+5.8%
Q3 2020+11.8%+5.4%+12.6%
Q2 2020+9.3%+12.3%+43.5%
Q1 2020+7.1%-6.9%-13.9%
Q4 2019
Q3 2019
Q2 2018
Q1 2018
Q4 2018
Q3 2017

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