Dynatrace posts Q2 beat but lowers profit outlook after Arize deal
Dynatrace reported fiscal Q2 2027 revenue of $579,918, up 17% on both an as-reported and constant-currency basis, while total ARR reached $2,207,223, up 16% on both bases. Diluted non-GAAP EPS was $0.54, compared with GAAP EPS of $0.23. The company issued Q3 adjusted EPS guidance of $0.44-$0.45 and lowered its profit outlook after completing the Arize acquisition, while reports differed on the full-year revenue range.
Why it matters
The Arize acquisition is expected to dilute Dynatrace's fiscal 2027 non-GAAP operating margin by 175 basis points, making the profit outlook less favorable despite strong reported growth. The company also authorized additional share repurchases, which mechanically increases potential capital returns to shareholders.
Key facts
- 1Fiscal Q2 total revenue was $579,918, an increase of 17% on both an as-reported and constant-currency basis. stocktitan.net
- 2Total ARR was $2,207,223, up 16% on both an as-reported and constant-currency basis. stocktitan.net
- 3Diluted GAAP net income per share was $0.23, while diluted non-GAAP net income per share was $0.54. stocktitan.net
- 4Dynatrace guided to Q3 adjusted EPS of $0.44-$0.45. investing.com
- 5The board authorized an incremental share repurchase program of up to $1.3 billion. stocktitan.net
Open questions
- Full-year revenue guidance is reported as $2.39-2.41 billion in material 7 but $2.33B-$2.34B in materials 4 and 8; the figures cannot be reconciled from the materials.
Summary written by AlphAI AI Desk from 14 of 14 sources. Not investment advice. Figures are as stated by the linked sources.