DT · Dynatrace, Inc.

Dynatrace delivered a strong fiscal 2026 close, marked by accelerating scale and disciplined profitability. The $2.054 billion ARR milestone—up 18% YoY (16% constant currency)—reflects broad-based demand across verticals and geographies, reinforced by record $1M+ ACV deals (22 total, nine new logos) and >100% YoY log management growth. While GAAP net income per share declined to $0.06 from $0.13 YoY, this was solely attributable to the non-recurring $320.9 million tax benefit in FY2025 from an intra-entity IP transfer; underlying operational performance improved meaningfully, with Non-GAAP EPS rising to $0.41 in Q4 and $1.70 for FY2026. Margins expanded across the board: Non-GAAP operating margin held steady at 29% for FY2026, while GAAP operating margin improved to 12% from 11%, signaling leverage from scale and cost discipline. Free cash flow hit $529 million (26% margin), up 23% YoY, enabling aggressive capital return—$224 million repurchased in Q4 alone, completing the prior $500M program and deploying $151M under the new $1B authorization. Management’s FY2027 guidance targets 14–15% constant currency revenue growth and maintains 29.5% Non-GAAP operating margin, reflecting confidence in continued execution amid AI-driven observability tailwinds. Strategic acquisitions of DevCycle and Bindplane deepen platform capabilities for AI-native applications and telemetry control, directly supporting the stated objective to 'accelerate ARR growth while delivering balanced growth and profitability.'