Dynatrace Inc (NYSE:DT) stock rose 2.52% (As on February 10, 11:25:38 AM UTC-4, Source: Google Finance) after the company reported third-quarter results that exceeded expectations across most metrics. For ARR, the company ended the quarter at $1.97 billion, representing 16% growth and demonstrating stabilization of ARR growth for three straight quarters. Q3 net new ARR was $75 million adjusted for foreign exchange movements. Net new ARR was up 11% from a year ago and represents the third consecutive quarter of double-digit growth. This strong performance was driven by both new logo ARR and steady expansion ARR, including a number of 7-figure end-to-end observability deals. In Q3, the company added 164 new logos to the Dynatrace, Inc. platform.

Further, the customers have expressed very strong interest in the strategic collaboration with ServiceNow to advance autonomous IT operations and scale intelligent automation. At Perform, ServiceNow’s EVP and GM of technology workflow products reinforced the better together vision, highlighting use cases of how customers can integrate with Dynatrace, Inc. to get greater efficiencies in their teams, accelerate agentic initiatives, and drive automation with confidence. In an agentic world, engaging in and integrating with an ecosystem of partners, including the long-standing relationships with global system integrators and hyperscalers, will be mandatory. The company is also integrating with Amazon Bedrock agent core, embedding Dynatrace, Inc. with Azure’s SRE agent, and serving as the launch partner for GCP Gemini command line interface extensions and Gemini Enterprise.

DT in the third quarter of FY26 has reported the adjusted earnings per share of 44 cents, beating the analysts’ estimates for the adjusted earnings per share of 41 cents. The company had reported the adjusted revenue growth of 18 percent to $515 million in the third quarter of FY26, beating the analysts’ estimates for revenue of $505.8 million. Non-GAAP operating margin was 30%, exceeding the top end of guidance by nearly 100 basis points driven mostly by revenue upside flowing through to the bottom line. Non-GAAP net income was $135 million. The company generated $27 million of free cash flow in the third quarter. On a trailing twelve-month basis, free cash flow was $463 million or 24% of revenue.

Dynatrace Inc sees Q4 2026 EPS of $0.38-$0.39 versus the analyst consensus of $0.37. Dynatrace Inc sees Q4 2026 revenue of $518.00B-$523.00B versus the analyst consensus of $514.40B. Dynatrace Inc sees FY 2026 EPS of $1.67-$1.69 versus the analyst consensus of $1.64. Dynatrace Inc sees FY 2026 revenue of $2.00B-$2.01B versus the analyst consensus of $1.99B.