𝐃𝐲𝐧𝐚𝐭𝐫𝐚𝐜𝐞: 𝐐𝟐 𝐄𝐚𝐫𝐧𝐢𝐧𝐠𝐬 𝐚𝐧𝐝 𝐑𝐞𝐯𝐞𝐧𝐮𝐞 𝐁𝐞𝐚𝐭 𝐄𝐬𝐭𝐢𝐦𝐚𝐭𝐞𝐬, 𝐑𝐚𝐢𝐬𝐞𝐬 𝐅𝐘𝟐𝟎𝟐𝟕 𝐑𝐞𝐯𝐞𝐧𝐮𝐞 𝐎𝐮𝐭

$DT (-10,82 %)

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📊 𝐑𝐞𝐬𝐮𝐥𝐭𝐬

• Non-GAAP EPS: $0.54 (Est. $0.49) ✅, +23% YoY.

• Revenue: $579.9M (Est. $568.12M) ✅, +17% YoY.

• GAAP EPS: $0.23 (vs. $0.19 YoY).

• ARR: $2.207B, +16% YoY.

• Subscription Revenue: $553.1M, +17% YoY.

• Non-GAAP Operating Income: $184.3M, +21% YoY.

• Non-GAAP Operating Margin: 32%, +100 bps YoY.

• Adjusted Free Cash Flow: $42.3M, +52% YoY.

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🎯 𝐆𝐮𝐢𝐝𝐚𝐧𝐜𝐞

• Q3 FY2027 Revenue: $591M–$596M, midpoint $593.5M (Est. $594.84M) ❌.

• Q3 Non-GAAP EPS: $0.44–$0.45, midpoint $0.445 (Est. $0.48) ❌.

• FY2027 Revenue: $2.330B–$2.340B, midpoint $2.335B (Est. $2.33B) ✅, raised from $2.306B–$2.320B.

• FY2027 Non-GAAP EPS: $1.88–$1.90 (Est. $1.91) ❌, cut from $1.97–$1.99.

• FY2027 ARR: $2.393B–$2.413B, raised from $2.359B–$2.379B.

• FY2027 Non-GAAP Operating Margin: 28.0%–28.25%, lowered from 29.5%–29.75%.

• FY2027 Adjusted Free Cash Flow: $600M–$605M, lowered from $610M–$615M.

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📌 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬

• Q2 adjusted EPS beat consensus by ~10.2%, while revenue exceeded estimates by ~2.1%.

• Platform consumption grew over 20% YoY, with AI customers consuming more than twice as fast as other customers.

• Log management grew more than 100% YoY, while infrastructure management surpassed $500M in annualized consumption.

• More than 1,100 customers now use Dynatrace agents for autonomous operations, up from 800+ last quarter.

• Completed the Arize acquisition on October 1, expanding AI evaluation and LLM monitoring capabilities.

• Arize is expected to add ~200 bps to FY2027 ARR growth but dilute non-GAAP operating margin by ~175 bps.

• Announced a strategic partnership with CrowdStrike combining cybersecurity and observability.

• Authorized an additional $1B in share repurchases, bringing remaining buyback capacity to ~$1.3B.

• Investor Day scheduled for February 16, 2027, with a roadmap toward a Rule of 50 profile in FY2029.

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💬 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐂𝐨𝐦𝐦𝐞𝐧𝐭𝐚𝐫𝐲

“As organizations increasingly deploy AI agents into production, the need for enterprise-grade observability and governance has never been greater.”