Dynatrace Boosts Fiscal 2027 Sales Outlook After $580 Million Quarter

Dynatrace lifted its fiscal 2027 revenue and annual recurring revenue targets after second-quarter revenue rose 17% year over year to $580 million, while lowering its non-GAAP diluted earnings-per-share range.

The company expects fiscal 2027 revenue of $2.33 billion to $2.34 billion, representing 16% growth on a constant-currency basis. Its annual recurring revenue (ARR) forecast is $2.393 billion to $2.413 billion, or 17.5% to 18.5% growth on a constant-currency basis. The as-reported ARR growth range is 16.5% to 17.5%.

Dynatrace now forecasts non-GAAP diluted earnings per share of $1.88 to $1.90 and adjusted free cash flow of $600 million to $605 million. Second-quarter non-GAAP diluted EPS was $0.54.

The revised forecast builds on recent attention to Dynatrace’s ARR growth outlook. BNP Paribas upgraded the company on Oct. 8, citing an improving growth outlook.