Dynatrace Inc (NYSE:DT), the leading AI-powered observability platform, stock fell 0.67% (As on May 15, 11:38:44 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for the fourth quarter of FY25. Total ARR of $1,734 million, an increase of 15%, or 17% on a constant currency basis. Subscription Revenue of $424 million, an increase of 18%, or 20% on a constant currency basis. The Non-GAAP Income from Operations was of $118 million. The company generated GAAP Operating Cash Flow of $459 million and Free Cash Flow of $431 million.

Moreover, Dynatrace closed 15 deals greater than $1 million in annual contract value (ACV) in the quarter, fourteen of which were in collaboration with partners. Dynatrace Platform Subscription (DPS) licensing models continue to gain traction with over 40% of the customer base and more than 60% of the ARR leveraging this flexible, scalable, and transparent subscription approach. Consumption growth rates across the Dynatrace platform continued to outpace revenue growth, with consumption growth rates for DPS customers growing twice the rate of SKU-based customers. Dynatrace signed a new strategic collaboration agreement with Amazon Web Services (AWS) to optimize the digital enterprise to provide joint customers with elevated business insights and accelerated time to outcomes. In addition, the company announced early access for joint Google Cloud customers to the latest platform innovations, powered by Grail enabling customers to benefit from the combined power of the Dynatrace platform with Google Cloud’s cutting-edge infrastructure and AI capabilities.

DT in the fourth quarter of FY25 has reported the adjusted earnings per share of 33 cents, beating the analysts’ estimates for the adjusted earnings per share of 30 cents. The company had reported the adjusted revenue growth of 17 percent to $445 million in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $434.96 million.

Additionally, during the fourth quarter, Dynatrace spent $43 million to repurchase 787,000 shares at an average price of $53.99 under its $500 million share repurchase program.

Dynatrace Inc expects Q1 2026 EPS to be in the range of $0.37-$0.38 versus the analyst consensus of $0.35. Dynatrace Inc expects Q1 2026 revenue to be in the range of $465.00M-$470.00M versus the analyst consensus of $454.20M.

Dynatrace Inc expects FY 2026 EPS to be in the range of $1.56-$1.59 versus the analyst consensus of $1.53. Dynatrace Inc expects FY 2026 revenue to be in the range of $1.95B-$1.97B versus the analyst consensus of $1.94B.