Shares of Dynatrace (NYSE: DT) surged over 7% following strong quarterly results and an optimistic growth forecast. Revenue jumped 18% to $515 million, with annual recurring revenue up 20% to nearly $2 billion. The company’s adjusted net income increased 21% to $134.7 million, beating estimates. Dynatrace raised its full-year outlook and announced a $1 billion share repurchase program.

Dynatrace uses AI to help customers analyze applications and automate businesses. CEO Rick McConnell emphasized the importance of observability in managing AI workloads. The company integrates with cloud computing platforms from Amazon, Microsoft, and Alphabet. Adjusted earnings per share are now expected to be $1.67 to $1.69, up from $1.62 to $1.64, with increased free cash flow guidance.

Despite Dynatrace’s strong performance, it wasn’t included in the Motley Fool’s list of 10 best stocks to buy now. The report highlights stocks with the potential for significant returns, citing past recommendations like Netflix and Nvidia. Stock Advisor boasts a total average return of 914%, outperforming the S&P 500. Investors can access the latest top 10 list through Stock Advisor.

Read more at Nasdaq: Why Dynatrace Stock Climbed Today