Netscout and Dynatrace report solid quarterly growth with increased revenue and earnings – News

Application monitoring and cybersecurity companies NetScout Systems Inc. and Dynatrace both reported quarterly earnings today and neither disappointed, with both beating analysts’ expectations in their most recent quarter.

For its fiscal 2025 third quarter, Netscout reported adjusted earnings per share of 94 cents, up from 73 cents per share in the same quarter of the year prior, on revenue of $252 million, up 16% year-over-year. Analysts had been expecting 73 cents per share on revenue of $221 million.

Netscout’s product revenue came in at $128.1 million, up from $95.8 million in the same quarter of fiscal 2024 and service revenue was $123.8 million, up from $122.2 million.

Recent business highlights included Netscout’s mid-December 2024 announcement of updates to its Arbor Edge Defense and Arbor Enterprise Manager products. The updates enhance its Adaptive DDoS Protection Solution to counter artificial intelligence-enabled distributed denial of service threats and safeguard critical information technology infrastructure.

The company said in its earnings release that the results include “certain customer orders received in our Q3 that were anticipated to be received in our Q4, as customers leveraged their calendar year-end budgets.”

For the full fiscal year 2025, Netscout is forecasting adjusted earnings per share of $2.15 to $2.30, up from a previously forecast $2.10 to $2.30, on revenue of $810 million to $820 million, compared with a previous forecast of $800 million to $830 million.

For its fiscal 2025 third quarter, Dynatrace reported adjusted earnings per share of 37 cents, up from 33 cents in the same quarter of the previous year, on revenue of $436 million, up 19% year-over-year. Analysts had been expecting 33 cents per share on revenue of $426.46 million.

Dynatrace saw annual recurring revenue hit $1.647 billion as of the end of the quarter, up 16% year-over-year and subscription revenue came in at $417 million, up 20%.

“In a world where generative and now agentic AI workloads are ramping, the observability market has become mission critical for organizations to ensure high business resiliency and deliver exceptional customer experiences,” Chief Executive Rick McConnell said in the company’s earning release. “Our leading AI-powered observability platform, combined with our ongoing innovation, provide us with a powerful advantage to capture the opportunity ahead.”

For its fiscal fourth quarter, Dynatrace expects adjusted earnings per share of 29 to 31 cents on revenue of $432 million to $437 million. For the full year, the company expects adjusted earnings per share of $1.36 to $1.37 on revenue of $1.686 billion to $1.691 billion.

Image: Dynatrace