Investing.com -- Dynatrace shares surged more than 10% in premarket trading Monday after the AI technology firm reported better-than-expected results for the third quarter of fiscal 2026 and raised its full-year guidance.

The company, which provides an AI-powered observability platform, posted Q3 earnings per share (EPS) of $0.44, exceeding consensus estimates of $0.41. Revenue for the period rose to $515 million, above the $505.8 million expected by analysts.

Annual recurring revenue increased 16% on a constant currency basis, while subscription revenue also grew 16% on the same basis.

For the fourth quarter of fiscal 2026, the company expects EPS of $0.38 to $0.39, compared with consensus estimates of $0.37. Revenue is projected at $518 million to $523 million, ahead of the $514.4 million analysts were expecting.

For full-year fiscal 2026, Dynatrace raised its EPS outlook to a range of $1.67 to $1.69, up from the previous guidance of $1.62 to $1.64 and above the $1.64 consensus estimate.

The company also lifted its full-year revenue forecast to $2.0 billion to $2.01 billion, compared with its prior range of $1.98 billion to $1.99 billion and the $1.99 billion consensus view. Full-year ARR is now expected at $2.05 billion to $2.06 billion, up from the previous $2.01 billion to $2.02 billion range.