Dynatrace (DT) Q4 2026 Financial Results Summary

BOSTON, Mass., May 13, 2026 - Dynatrace (NYSE: DT), the leading AI-powered observability platform, has announced its financial results for the fourth quarter and full year ended March 31, 2026.

Key Financial Highlights – Q4 Fiscal 2026

• Annual Recurring Revenue (ARR):
  • Total ARR reached $2,054 million, an increase of 18%, with a 16% increase on a constant currency basis.
• Total Revenue:
  • Amounted to $532 million, an increase of 19%, or 16% on a constant currency basis.
• Subscription Revenue:
  • Totaled $506 million, reflecting a 19% increase, or 16% on a constant currency basis.
• Operating Income:
  • GAAP income from operations was $37 million, while non-GAAP income from operations reached $143 million.
• Net Income per Share:
  • GAAP net income per share was $0.06, and non-GAAP net income per share was $0.41 on a dilutive basis.
• Operating Margins:
  • GAAP operating margin stood at 7%, compared to 10% from the same quarter last year.
  • Non-GAAP operating margin was 27%, up from 26% year-over-year.

Key Financial Highlights – Full Year Fiscal 2026

• Total Revenue for FY26:
  • Stood at $2,018 million, marking a 19% increase, or 17% on a constant currency basis.
• Subscription Revenue:
  • Reached $1,930 million with a 19% increase, also reflecting a 17% increase in constant currency.
• Operating Income:
  • GAAP income from operations totaled $245 million, while non-GAAP income from operations was $592 million.
• Net Income per Share:
  • GAAP net income per share for FY26 was $0.54, compared to $1.62 last year.
  • Non-GAAP net income per share increased to $1.70 from $1.39 year-over-year.
• Operating Cash Flow:
  • Reported at $562 million, with free cash flow amounting to $529 million.

Business Highlights

• Record Deals:
  • Dynatrace closed a record 22 deals exceeding $1 million in annual contract value (ACV) in Q4. Nine of these deals were with new logos.
• Log Management Growth:
  • The log management product category demonstrated the fastest growth, with consumption growing by more than 100% year-over-year.
• Acquisitions:
  • The company enhanced its offerings by acquiring DevCycle, a feature management platform, and Bindplane, expanding telemetry pipeline capabilities.
• AWS Marketplace:
  • Surpassed $1 billion in sales within the AWS Marketplace.
• Integration Expansions:
  • Expanded integrations with Anthropic's Claude Code and GitHub Advanced Security, bringing observability capabilities to more platforms.
• Customer Recognition:
  • Dynatrace was recognized as a Customers’ Choice in the 2025 Gartner Peer Insights Voice of the Customer for Observability Platforms report.

Share Repurchase Program

• Increased Buybacks:
  • In Q4, Dynatrace repurchased $224 million worth of shares, a sequential increase of 40% from previous buybacks.
  • This was part of completing the initial $500 million share repurchase program, with $151 million linked to a new $1 billion program announced in February 2026.

Outlook

• Guidance for FY27:
  • ARR is projected to be between $2,382 - $2,402 million, reflecting a reported growth of 16% - 17% and constant currency growth of 15.5% - 16.5%.
  • Total revenue guidance for fiscal 2027 is set at $2,317 - $2,335 million, expected to grow 15% - 16% as reported and 14% - 15% in constant currency.
• Subscription Revenue for FY27:
  • Anticipated to range from $2,217 - $2,235 million, representing 15% - 16% growth as reported.
• Non-GAAP Profitability:
  • Non-GAAP metrics indicate expected operating income to reach between $682 - $690 million with a non-GAAP operating margin of 29.5%.

Dynatrace continues to drive towards accelerated growth while balancing its objectives of maintaining profitability and investing in innovation. The recent financial results underscore both operational momentum and commitment to shareholder value through strategic repurchases and market expansions.

Note: All amounts in the following tables are in thousands.

CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended March 31,	Twelve Months Ended March 31,
Revenue:	2026	2025	2026	2025
Subscription	$505,754	$423,570	$1,929,722	$1,622,163
Service	$25,962	$21,595	$88,665	$76,520
Total revenue	$531,716	$445,165	$2,018,387	$1,698,683
Cost of revenue:
Cost of subscription	$77,356	$63,265	$284,611	$233,299
Cost of service	$23,112	$21,095	$84,105	$73,631
Amortization of acquired technology	$927	$734	$3,488	$13,262
Total cost of revenue	$101,395	$85,094	$372,204	$320,192
Gross profit	$430,321	$360,071	$1,646,183	$1,378,491
Operating expenses:
Research and development	$130,579	$103,285	$474,312	$384,572
Sales and marketing	$183,442	$161,797	$690,489	$605,599
General and administrative	$60,413	$52,062	$217,414	$195,347
Amortization of other intangible assets	$20	$13	$56	$13,540
Impairment of long-lived assets	$18,525	$0	$18,525	$0
Total operating expenses	$392,979	$317,157	$1,400,796	$1,199,058
Income from operations	$37,342	$42,914	$245,387	$179,433
Interest income, net	$10,111	$10,930	$47,731	$48,281
Other (expense) income, net	$-638	$1,860	$6,643	$-4,285
Income before income taxes	$46,815	$55,704	$299,761	$223,429
Income tax (expense) benefit	$-29,399	$-16,400	$-137,092	$260,255
Net income	$17,416	$39,304	$162,669	$483,684
Net income per share:
Basic	$0.06	$0.13	$0.54	$1.62
Diluted	$0.06	$0.13	$0.54	$1.59
Weighted average shares outstanding:
Basic	297,544	299,441	300,102	298,384
Diluted	298,925	304,354	303,727	303,602

CONSOLIDATED BALANCE SHEETS

	March 31, 2026	March 31, 2025
Assets
Current assets:
Cash and cash equivalents	$1,097,220	$1,017,039
Short-term marketable securities	$74,881	$96,189
Accounts receivable, net	$710,200	$624,437
Deferred contract costs, current	$127,495	$109,895
Prepaid expenses and other current assets	$113,651	$83,901
Total current assets	$2,123,447	$1,931,461
Long-term marketable securities	$51,908	$51,648
Property and equipment, net	$72,993	$61,522
Operating lease right-of-use asset, net	$139,285	$67,479
Goodwill	$1,350,256	$1,336,435
Intangible assets, net	$22,850	$25,534
Deferred tax assets, net	$508,742	$529,550
Deferred contract costs, non-current	$113,111	$95,297
Other assets	Disclaimer The content on MarketsFN.com is provided for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or trading guidance. All investments carry risk and past performance does not guarantee future results. You are solely responsible for your investment decisions and should conduct independent research and consult a qualified financial advisor before acting. MarketsFN.com and its authors are not liable for any losses or damages arising from the use of this information.