Dynatrace Inc (DT)

DT cpps 41.21

Dynatrace shares slide despite quarterly earnings beat (DT)May 13, 2026 8:50 AM
IH Market News Shares of Dynatrace (NYSE:DT) dropped more than 10% in premarket trading on Wednesday even after the software group reported quarterly earnings and revenue above Wall Street expectations. Revenue and earnings top analyst forecasts Dynatrace posted fourth-quarter adjusted earnings per share of $0.41, exceeding analyst expectations of $0.39 per share.Quarterly revenue reached $532 million, ahead of the consensus estimate of $521.02 million. Revenue increased 19% from the same period a year earlier, or 16% on a constant-currency basis.The company also surpassed $2 billion in annual recurring revenue (ARR) during the quarter. ARR growth outlook points to slower expansion For the full fiscal year, Dynatrace projected ARR in a range of $2.38 billion to $2.40 billion, representing constant-currency growth of between 15.5% and 16.5%.The forecast indicates a modest slowdown compared with the 16% constant-currency ARR growth recorded in the fourth quarter, which marked the company’s fourth straight quarter at that growth level.“Dynatrace delivered a strong finish to FY26, surpassing $2 billion in ARR and achieving our fourth consecutive quarter of 16% constant currency ARR growth,” said Rick McConnell, chief executive officer of Dynatrace.“As we look ahead, our objective is to accelerate ARR growth while delivering balanced growth and profitability.” Company issues fiscal 2027 guidance Dynatrace said it expects first-quarter fiscal 2027 adjusted earnings per share of between $0.44 and $0.45, with the midpoint broadly matching analyst consensus expectations of $0.45.First-quarter revenue is projected in a range of $547 million to $551 million. The midpoint of $549 million was slightly ahead of the consensus forecast of $548.2 million.For fiscal 2027, the company forecast adjusted earnings per share of $1.93 to $1.95, with the midpoint of $1.94 well above analyst estimates of $1.68.Dynatrace also projected full-year revenue of between $2.32 billion and $2.33 billion. The midpoint of $2.325 billion was modestly above the consensus estimate of $2.31 billion.Dynatrace stock price Original: Dynatrace shares slide despite quarterly earnings beat (DT)

Dynatrace Reports Fourth Quarter and Full Year Fiscal 2026 Financial ResultsMay 13, 2026 6:30 AM
Business Wire Surpasses $2 billion in ARR and reports double digit net new ARR growth Delivers fourth consecutive quarter of 16% ARR growth on a constant currency basis Achieves FY26 GAAP Operating Margin of 12% and Non-GAAP Operating Margin of 29% Increases Q4 share repurchases sequentially by 40% to $224 million Dynatrace (NYSE: DT), the leading AI-powered observability platform, today announced financial results for the fourth quarter and full year ended March 31, 2026. "Dynatrace delivered a strong finish to FY26, surpassing $2 billion in ARR and achieving our fourth consecutive quarter of 16% constant currency ARR growth,” said Rick McConnell, CEO of Dynatrace. “In an AI-first world, observability has become mission critical to a vastly higher percentage of workloads. Customers are choosing Dynatrace for our end-to-end platform, which serves as both the intelligence engine for deterministic AI and contextual analytics, as well as the control plane to coordinate agentic action. By enabling system resilience and AI reliability, Dynatrace is helping customers drive more autonomous operations and optimal business outcomes. As we look ahead, our objective is to accelerate ARR growth while delivering balanced growth and profitability." “We significantly increased the pace of our share buyback in the fourth quarter, repurchasing $224 million of Dynatrace stock,” said Jim Benson, Chief Financial Officer. “This uptick reflects our conviction in Dynatrace’s operational momentum, long term growth and cash flow trajectory, and the underlying value of our shares. Through our disciplined capital allocation approach and strong balance sheet, we will continue investing in innovation and growth while delivering value to shareholders.” All growth rates are compared to the fourth quarter and full year fiscal 2025 ended March 31, 2025 unless otherwise noted. Fourth Quarter Fiscal 2026 Financial Highlights: Total ARR of $2,054 million, an increase of 18%, or 16% on a constant currency basis Total revenue of $532 million, an increase of 19%, or 16% on a constant currency basis Subscription revenue of $506 million, an increase of 19%, or 16% on a constant currency basis GAAP income from operations of $37 million and non-GAAP income from operations of $143 million GAAP net income per share of $0.06 and non-GAAP net income per share of $0.41, on a dilutive basis Full Year Fiscal 2026 Financial Highlights: Total revenue of $2,018 million, an increase of 19%, or 17% on a constant currency basis Subscription revenue of $1,930 million, an increase of 19%, or 17% on a constant currency basis GAAP income from operations of $245 million and non-GAAP income from operations of $592 million GAAP net income per share of $0.54 and non-GAAP net income per share of $1.70, on a dilutive basis GAAP operating cash flow of $562 million and free cash flow of $529 million Business Highlights: Ongoing traction in go-to-market strategy resulted in an increase in average deal size. Dynatrace closed a record 22 deals greater than $1 million in annual contract value (ACV) in the fourth quarter, nine of which were new logos. Log management remained the fastest growing major product category, with Q4 consumption continuing to grow more than 100% year-over-year. Enhanced the company's offerings through two acquisitions: DevCycle, a feature management platform on the OpenFeature standard that helps developers, site reliability engineers, and platform teams bring progressive delivery for AI-native applications directly into the Dynatrace platform. Bindplane, a company whose open-standards-based telemetry pipeline capabilities combined with AI-powered observability gives customers greater access, flexibility, and control of their logs, metrics, and application data. Surpassed $1 billion in AWS Marketplace sales, a key indicator of hyperscaler engagement. Expanded the Dynatrace Model Context Protocol (MCP) server as a connector for Anthropic's Claude Code, Cowork, and Chat to bring observability and security context into every Claude session. And extended integration with GitHub Advanced Security to share the runtime context of monitored Kubernetes environments with developers and security teams. Recognized as a Customers’ Choice in the 2025 Gartner Peer Insights Voice of the Customer for Observability Platforms report.1 Share Repurchase Program During the fourth quarter of fiscal 2026, Dynatrace spent $224 million to repurchase 5.9 million shares at an average price of $37.71. Dynatrace completed its initial $500 million share repurchase program, and $151 million of purchases in the fourth quarter were under its new $1 billion program announced in February 2026. Fourth Quarter 2026 Financial Highlights (Unaudited – In thousands, except per share data)     Three Months Ended March 31,     2026       2025   Annual recurring revenue (ARR):       Total ARR $ 2,053,555     $ 1,734,164   Year-over-Year Increase   18 %     Year-over-Year Increase - constant currency (*)   16 %             Revenue:       Total revenue $ 531,716     $ 445,165   Year-over-Year Increase   19 %     Year-over-Year Increase - constant currency (*)   16 %             Subscription revenue $ 505,754     $ 423,570   Year-over-Year Increase   19 %     Year-over-Year Increase - constant currency (*)   16 %             GAAP Financial Measures:       GAAP income from operations $ 37,342     $ 42,914   GAAP operating margin   7 %     10 %         GAAP net income $ 17,416     $ 39,304           GAAP net income per share - diluted $ 0.06     $ 0.13           GAAP shares outstanding - diluted   298,925       304,354           Net cash provided by operating activities $ 226,361     $ 162,790   Net cash provided by operating activities as a percent of revenue   43 %     37 %         Non-GAAP Financial Measures (*):       Non-GAAP income from operations $ 142,576     $ 117,887   Non-GAAP operating margin   27 %     26 %         Non-GAAP net income $ 123,967     $ 99,047           Non-GAAP net income per share - diluted $ 0.41     $ 0.33           Non-GAAP shares outstanding - diluted   298,925       304,354           Free Cash Flow $ 212,403     $ 145,528   Free Cash Flow margin   40 %     33 % Full Year 2026 Financial Highlights (Unaudited – In thousands, except per share data)     Year Ended March 31,     2026       2025   Revenue:       Total revenue $ 2,018,387     $ 1,698,683   Year-over-Year Increase   19 %     Year-over-Year Increase - constant currency (*)   17 %             Subscription revenue $ 1,929,722     $ 1,622,163   Year-over-Year Increase   19 %     Year-over-Year Increase - constant currency (*)   17 %             GAAP Financial Measures:       GAAP income from operations $ 245,387     $ 179,433   GAAP operating margin   12 %     11 %         GAAP net income (**) $ 162,669     $ 483,684           GAAP net income per share - diluted (**) $ 0.54     $ 1.59           GAAP shares outstanding - diluted   303,727       303,602           Net cash provided by operating activities $ 561,850     $ 459,419   Net cash provided by operating activities as a percent of revenue   28 %     27 %         Non-GAAP Financial Measures (*):       Non-GAAP income from operations $ 591,929     $ 493,540   Non-GAAP operating margin   29 %     29 %         Non-GAAP net income $ 517,641     $ 422,313           Non-GAAP net income per share - diluted $ 1.70     $ 1.39           Non-GAAP shares outstanding - diluted   303,727       303,602           Free Cash Flow $ 529,483     $ 430,617   Free Cash Flow margin   26 %     25 %   * For additional information, please see the "Non-GAAP Financial Measures" and "Definitions - Non-GAAP and Other Metrics" sections of this press release.   ** During fiscal 2025, Dynatrace completed an intra-entity asset transfer of the global economic rights of intellectual property (IP) from a wholly-owned U.S. subsidiary to a wholly-owned Swiss subsidiary, more closely aligning IP rights with business operations. The transfer generated an income tax benefit of $320.9 million, or $1.06 per share on a dilutive basis. Financial Outlook Based on information available as of May 13, 2026, Dynatrace is issuing guidance for the first quarter and full year fiscal 2027 in the table below. Based on foreign exchange rates as of April 30, 2026, the foreign exchange tailwind relative to constant currency is expected to be approximately $10 million on ARR and $15 million on revenue for fiscal 2027. This guidance also excludes the impact of any share repurchases during fiscal 2027. Growth rates for ARR, Total revenue, and Subscription revenue are presented in constant currency to provide better visibility into the underlying growth of the business. All growth rates are compared to the first quarter and full year of fiscal 2026 ended March 31, 2026 unless otherwise noted.   (In millions, except per share data) First Quarter Fiscal 2027   Full Year Fiscal 2027 ARR -   $2,382 - $2,402 As reported -   16% - 17% Constant currency -   15.5% - 16.5% Total revenue $547 - $551   $2,317 - $2,335 As reported 15%   15% - 16% Constant currency 13% - 14%   14% - 15% Subscription revenue $523 - $527   $2,217 - $2,235 As reported 14% - 15%   15% - 16% Constant currency 13% - 14%   14% - 15% Non-GAAP income from operations $150 - $154   $682 - $690 Non-GAAP operating margin 27.5% - 28%   29.5% Non-GAAP net income $130 - $134   $584 - $594 Non-GAAP net income per diluted share $0.44 - $0.45   $1.93 - $1.95 Diluted weighted average shares outstanding 298 - 299   302 - 304 Free cash flow -   $613 - $620 Free cash flow margin -   26.5% Conference Call and Webcast Information Dynatrace will host a conference call and live webcast to discuss its results and business outlook at 8:00 a.m. Eastern Time today, May 13, 2026. To access the conference call from the U.S. and Canada, dial (866) 405-1247, or internationally, dial (201) 689-8045 with event confirmation #: 13760309. The call will also be available live via webcast on the company’s website, ir.dynatrace.com. An audio replay of the call will also be available until 11:59 p.m. Eastern Time on August 13, 2026 by dialing (877) 660-6853 from the U.S. or Canada, or for international callers by dialing (201) 612-7415 and entering event confirmation #: 13760309. In addition, an archived webcast will be available at ir.dynatrace.com. We announce material financial information to our investors using our Investor Relations website, press releases, SEC filings and public conference calls and webcasts. We also use these channels to disclose information about the company, our planned financial and other announcements, attendance at upcoming investor and industry conferences, and for complying with our disclosure obligations under Regulation FD. Non-GAAP Financial Measures In addition to disclosing financial measures prepared in accordance with GAAP, this press release and the accompanying tables contain certain non-GAAP financial measures as defined by Regulation G, including non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share, free cash flow, and free cash flow margin. We also use or discuss non-GAAP financial measures in conference calls, slide presentations and webcasts. We use these non-GAAP financial measures for financial and operational decision-making purposes, and as a means to evaluate period-to-period comparisons and liquidity. We believe that these non-GAAP financial measures provide useful information about our operating results, enhance the overall understanding of past financial performance and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Our non-GAAP financial measures may not provide information that is directly comparable to similarly titled metrics provided by other companies. Non-GAAP financial measures are defined in this press release and the tables included in this press release include reconciliations of historical non-GAAP financial measures to their most directly comparable GAAP measures. We also include non-GAAP financial measures in our financial outlook included in this press release. Reconciliations of forward-looking non-GAAP income from operations, non-GAAP net income, non-GAAP net income per diluted share, and free cash flow guidance to the most directly comparable GAAP measures are not available without unreasonable efforts due to the high variability, complexity, and low visibility with respect to the charges excluded from these non-GAAP measures; in particular, the measures and effects of share-based compensation expense, employer taxes and tax deductions specific to equity compensation awards that are directly impacted by future hiring, turnover and retention needs, as well as unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results. Definitions - Non-GAAP and Other Metrics Annual Recurring Revenue (ARR) is defined as the daily revenue of all subscription agreements that are actively generating revenue as of the last day of the reporting period multiplied by 365. We exclude from our calculation of ARR any revenues derived from month-to-month agreements and/or product usage overage billings. Constant Currency amounts for ARR, Total revenue, and Subscription revenue are presented to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign exchange rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year. Non-GAAP Income from Operations is defined as GAAP income from operations adjusted for the following items: share-based compensation; employer payroll taxes on employee stock transactions; amortization of intangibles; transaction, restructuring and other non-recurring or unusual items that may arise from time to time. The related Non-GAAP Operating Margin is non-GAAP income from operations expressed as a percentage of total revenue. Non-GAAP Net Income is defined as GAAP net income adjusted for the following items: income tax expense/benefit; non-GAAP effective cash taxes; net interest expense and income; net cash received from and paid for interest; share-based compensation; employer payroll taxes on employee stock transactions, amortization of intangibles; gains and losses on currency translation; and transaction, restructuring and other non-recurring or unusual items that may arise from time to time. Non-GAAP net income per diluted share is calculated as non-GAAP net income divided by the diluted weighted average shares outstanding used to compute GAAP net income per diluted share. Free Cash Flow is defined as the net cash provided by or used in operating activities less capital expenditures, reflected as purchase of property and equipment and capitalized software additions in our financial statements. The related margin is free cash flow expressed as a percentage of total revenue. About Dynatrace Dynatrace (NYSE: DT) is advancing observability for today’s digital businesses, helping to transform the complexity of modern digital ecosystems into powerful business assets. By leveraging AI-powered insights, Dynatrace enables organizations to analyze, automate, and innovate faster to drive their business forward. To learn more about Dynatrace, visit www.dynatrace.com, visit our blog and follow us on LinkedIn and X @dynatrace. Dynatrace and the Dynatrace logo are trademarks of the Dynatrace, Inc. group of companies. All other trademarks are the property of their respective owners. © 2026 Dynatrace LLC. Cautionary Language Concerning Forward-Looking Statements This press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the company's objective to accelerate ARR growth while delivering balanced growth and profitability, the company's plans to invest in innovation and growth while delivering value to shareholders, the expected and current benefits that we believe organizations receive from using the Dynatrace platform and offerings of our partners and other companies with which we collaborate and integrate, and our financial and business outlook, including our financial guidance for the first quarter and full year of fiscal 2027. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as “will,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” or words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation, our ability to maintain our revenue growth rates in future periods; market adoption of our product offerings; continued demand for, and spending on, our solutions; our ability to innovate and develop solutions that meet customer needs as cloud and AI workloads grow rapidly; the ability of our platform and solutions to effectively interoperate with customers’ IT infrastructures; our ability to acquire new customers and retain and expand our relationships with existing customers; our ability to expand our sales and marketing capabilities; our ability to compete; our ability to maintain successful relationships with partners; security breaches, other security incidents and any real or perceived errors, failures, defects or vulnerabilities in our solutions; our ability to protect our intellectual property; our ability to hire and retain necessary qualified employees to grow our business and expand our operations; our ability to successfully complete acquisitions and to integrate newly acquired businesses and offerings; the effect on our business of the macroeconomic environment, associated global economic conditions and geopolitical disruption; and other risks set forth under the caption “Risk Factors” in our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, and our other SEC filings. We assume no obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise. ____________________ Gartner Disclaimers 1Gartner, Voice of the Customer for Observability Platforms, Peer Community Contributors, 24 December 2025.   GARTNER and PEER INSIGHTS™ are trademarks of Gartner, Inc. and/or its affiliates. All rights reserved.   Gartner Peer Insights content consists of the opinions of individual end users based on their own experiences, and should not be construed as statements of fact, nor do they represent the views of Gartner or its affiliates. Gartner does not endorse any vendor, product or service depicted in this content nor makes any warranties, expressed or implied, with respect to this content, about its accuracy or completeness, including any warranties of merchantability or fitness for a particular purpose.   The Gartner content described herein (the “Gartner Content”) represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and is not a representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this Earnings Press Release), and the opinions expressed in the Gartner Content are subject to change without notice. DYNATRACE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited - In thousands, except per share data)     Three Months Ended March 31,   Twelve Months Ended March 31,     2026       2025       2026       2025   Revenue:               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 intangibles   20       13       56       13,540   Impairment of long-lived assets   18,525       —       18,525       —   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   SHARE-BASED COMPENSATION     Three Months Ended March 31,   Twelve Months Ended March 31,     2026     2025     2026     2025 Cost of revenue $ 9,619   $ 9,659   $ 40,276   $ 36,924 Research and development   28,371     26,097     114,110     100,866 Sales and marketing   19,987     19,855     84,480     77,336 General and administrative   15,022     14,593     60,760     56,577 Total share-based compensation expense $ 72,999   $ 70,204   $ 299,626   $ 271,703 DYNATRACE, INC. CONSOLIDATED BALANCE SHEETS (Unaudited - In thousands, except share data)     March 31,     2026       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   33,133       40,752   Total assets $ 4,415,725     $ 4,139,678           Liabilities and shareholders' equity       Current liabilities:       Accounts payable $ 2,728     $ 27,286   Accrued expenses, current   302,260       252,503   Deferred revenue, current   1,241,488       1,087,518   Operating lease liabilities, current   22,588       13,979   Total current liabilities   1,569,064       1,381,286   Deferred revenue, non-current   53,387       50,989   Accrued expenses, non-current   38,205       24,452   Operating lease liabilities, non-current   141,736       61,384   Deferred tax liabilities   1,943       419   Total liabilities   1,804,335       1,518,530   Shareholders' equity:       Common shares, $0.001 par value, 600,000,000 shares authorized, 294,652,951 and 299,813,048 shares issued and outstanding at March 31, 2026 and 2025, respectively   295       300   Additional paid-in capital   2,199,494       2,370,563   Retained earnings   447,596       284,927   Accumulated other comprehensive loss   (35,995 )     (34,642 ) Total shareholders' equity   2,611,390       2,621,148   Total liabilities and shareholders' equity $ 4,415,725     $ 4,139,678   DYNATRACE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited - In thousands)     Three Months Ended March 31, Twelve Months Ended March 31,     2026       2025     2026       2025   Cash flows from operating activities:             Net income $ 17,416     $ 39,304   $ 162,669     $ 483,684   Adjustments to reconcile net income to cash provided by operations:             Depreciation   4,702       5,385     18,446       19,236   Amortization   1,462       1,265     5,613       28,868   Share-based compensation   72,999       70,204     299,626       271,703   Deferred income taxes   6,658       (14,147 )   25,132       (392,942 ) Impairment of long-lived assets   18,525       —     18,525       —   Other   989       (2,100 )   (6,928 )     2,035   Net change in operating assets and liabilities:             Accounts receivable   (245,159 )     (228,277 )   (77,127 )     (24,026 ) Deferred contract costs   (7,203 )     (11,613 )   (31,057 )     (14,648 ) Prepaid expenses and other assets   (24,981 )     (15,020 )   (15,977 )     (36,593 ) Accounts payable and accrued expenses   56,344       59,142     25,896       31,534   Operating leases, net   978       (665 )   2,434       (231 ) Deferred revenue   323,631       259,312     134,598       90,799   Net cash provided by operating activities   226,361       162,790     561,850       459,419                 Cash flows from investing activities:             Purchase of property and equipment   (13,958 )     (14,566 )   (32,173 )     (26,106 ) Capitalized software additions   —       (2,696 )   (194 )     (2,696 ) Acquisition of businesses, net of cash acquired   (6,000 )     —     (6,000 )     (100 ) Purchases of marketable securities   (11,448 )     (37,566 )   (120,306 )     (145,555 ) Proceeds from sales and maturities of marketable securities   39,847       36,997     143,729       105,142   Other   (750 )     —     (750 )     —   Net cash provided by (used in) investing activity   7,691       (17,831 )   (15,694 )     (69,315 )               Cash flows from financing activities:             Proceeds from employee stock purchase plan   —       —     24,390       21,159   Proceeds from exercise of stock options   1,786       6,092     6,487       20,995   Repurchases of common stock   (223,675 )     (42,518 )   (478,708 )     (172,618 ) Taxes paid related to net share settlement of equity awards   (2,211 )     (2,620 )   (21,845 )     (18,958 ) Other   (552 )     (552 )   (4,418 )     (2,208 ) Net cash used in financing activities   (224,652 )     (39,598 )   (474,094 )     (151,630 )               Effect of exchange rates on cash and cash equivalents   (3,714 )     4,196     8,119       (418 )               Net increase in cash and cash equivalents   5,686       109,557     80,181       238,056                 Cash and cash equivalents, beginning of period   1,091,534       907,482     1,017,039       778,983   Cash and cash equivalents, end of period $ 1,097,220     $ 1,017,039   $ 1,097,220     $ 1,017,039   DYNATRACE, INC. GAAP to Non-GAAP Reconciliations (Unaudited - In thousands, except percentages)     Three Months Ended March 31,   Twelve Months Ended March 31,     2026       2025       2026       2025   Non-GAAP cost of revenue:               Cost of revenue $ 101,395     $ 85,094     $ 372,204     $ 320,192   Share-based compensation   (9,619 )     (9,659 )     (40,276 )     (36,924 ) Employer payroll taxes on employee stock transactions   (489 )     (661 )     (2,458 )     (2,447 ) Amortization of intangibles   (927 )     (734 )     (3,488 )     (13,262 ) Transaction, restructuring, and other   (1,475 )     —       (1,475 )     —   Non-GAAP cost of revenue $ 88,885     $ 74,040     $ 324,507     $ 267,559                   Non-GAAP gross profit:               Gross profit $ 430,321     $ 360,071     $ 1,646,183     $ 1,378,491   Share-based compensation   9,619       9,659       40,276       36,924   Employer payroll taxes on employee stock transactions   489       661       2,458       2,447   Amortization of intangibles   927       734       3,488       13,262   Transaction, restructuring, and other   1,475       —       1,475       —   Non-GAAP gross profit $ 442,831     $ 371,125     $ 1,693,880     $ 1,431,124                   GAAP gross margin   81 %     81 %     82 %     81 % Non-GAAP gross margin   83 %     83 %     84 %     84 %                 Non-GAAP operating expenses:               Operating expenses $ 392,979     $ 317,157     $ 1,400,796     $ 1,199,058   Share-based compensation   (63,380 )     (60,545 )     (259,350 )     (234,779 ) Employer payroll taxes on employee stock transactions   (2,719 )     (3,309 )     (12,834 )     (12,997 ) Amortization of intangibles   (20 )     (13 )     (56 )     (13,540 ) Transaction, restructuring, and other   (26,605 )     (52 )     (26,605 )     (158 ) Non-GAAP operating expenses $ 300,255     $ 253,238     $ 1,101,951     $ 937,584                   Non-GAAP income from operations:               Income from operations $ 37,342     $ 42,914     $ 245,387     $ 179,433   Share-based compensation   72,999       70,204       299,626       271,703   Employer payroll taxes on employee stock transactions   3,208       3,970       15,292       15,444   Amortization of intangibles   947       747       3,544       26,802   Transaction, restructuring, and other   28,080       52       28,080       158   Non-GAAP income from operations $ 142,576     $ 117,887     $ 591,929     $ 493,540                   GAAP operating margin   7 %     10 %     12 %     11 % Non-GAAP operating margin   27 %     26 %     29 %     29 % DYNATRACE, INC. GAAP to Non-GAAP Reconciliations (Unaudited - In thousands, except per share data)     Three Months Ended March 31,   Twelve Months Ended March 31,     2026       2025       2026       2025   Non-GAAP net income:               Net income $ 17,416     $ 39,304       162,669       483,684   Income tax expense (benefit)   29,399       16,400       137,092       (260,255 ) Non-GAAP effective cash tax   (28,223 )     (29,616 )     (117,584 )     (118,154 ) Interest income, net   (10,111 )     (10,930 )     (47,731 )     (48,281 ) Cash received from interest, net   9,614       10,776       43,296       46,927   Share-based compensation   72,999       70,204       299,626       271,703   Employer payroll taxes on employee stock transactions   3,208       3,970       15,292       15,444   Amortization of intangibles   947       747       3,544       26,802   Transaction, restructuring, and other   28,080       52       28,080       158   Loss (gain) on currency translation   638       (1,860 )     (6,643 )     4,285   Non-GAAP net income $ 123,967     $ 99,047     $ 517,641     $ 422,313                   Share count:               Weighted-average shares outstanding - basic   297,544       299,441       300,102       298,384   Weighted-average shares outstanding - diluted   298,925       304,354       303,727       303,602                   Shares used in non-GAAP per share calculations:               Weighted-average shares outstanding - basic   297,544       299,441       300,102       298,384   Weighted-average shares outstanding - diluted   298,925       304,354       303,727       303,602                   Non-GAAP net income per share:               Net income per share - basic $ 0.06     $ 0.13     $ 0.54     $ 1.62   Net income per share - diluted $ 0.06     $ 0.13     $ 0.54     $ 1.59   Non-GAAP net income per share - basic $ 0.42     $ 0.33     $ 1.72     $ 1.42   Non-GAAP net income per share - diluted $ 0.41     $ 0.33     $ 1.70     $ 1.39     Three Months Ended March 31, Twelve Months Ended March 31,     2026       2025     2026       2025   Free cash flow:             Net cash provided by operating activities $ 226,361     $ 162,790   $ 561,850     $ 459,419   Purchase of property and equipment   (13,958 )     (14,566 )   (32,173 )     (26,106 ) Capitalized software additions   —       (2,696 )   (194 )     (2,696 ) Free cash flow $ 212,403     $ 145,528   $ 529,483     $ 430,617     View source version on businesswire.com: https://www.businesswire.com/news/home/20260513757868/en/ Investor Contact:
Noelle Faris
VP, Investor Relations
ir@dynatrace.com Media Contact:
Stacy Gong
VP, Corporate Communications
pr-team@dynatrace.com Original: Dynatrace Reports Fourth Quarter and Full Year Fiscal 2026 Financial Results

Dynatrace Named a Leader and an Outperformer for the Second Consecutive Year in the 2026 GigaOm Radar for Kubernetes ObservabilityMay 8, 2026 9:00 AM
Business Wire Company positioned closest to the center of the Radar, underscoring its ability to deliver AI-driven, full-stack Kubernetes observability and automated operations at enterprise scale Dynatrace (NYSE: DT), the leading AI-powered observability platform, today announced it has been named a Leader and an Outperformer and positioned closest to the center of the 2026 GigaOm Radar for Kubernetes Observability. As Kubernetes adoption accelerates and generative AI workloads scale in production, organizations face growing complexity across multi-cloud, hybrid, and edge architectures. Dynatrace’s leadership in the GigaOm Radar recognizes Dynatrace as one of the most complete platforms in the market, underscoring its ability to help teams understand complex Kubernetes environments with advanced automation and AI-driven insights. “Kubernetes has become the foundation of modern enterprise infrastructure, and the organizations running it at scale need observability that is intelligent, automated, and deeply integrated into their engineering workflows,” said Steve Tack, Chief Product Officer at Dynatrace. “This recognition reflects the trust customers place in Dynatrace to give them the insights they need to build and run their most critical cloud-native system. By unifying observability and security with agentic AI, we are enabling teams to prevent issues, accelerate innovation, and continuously optimize their environments.” GigaOm evaluated 20 of the top Kubernetes observability solutions, assessing vendors across key features, emerging capabilities, and business criteria that reflect real-world enterprise requirements. Dynatrace received the top score for Key Features, including automated root cause analysis, predictive analytics, log anomaly detection, and user experience monitoring. According to GigaOm’s Chris Nelson, the author of the report, “Kubernetes observability has evolved from a supporting monitoring function into a strategic capability that directly impacts business resilience, innovation velocity, and financial performance. Dynatrace Intelligence is the industry standard for deterministic root cause analysis, providing precise answers rather than simple correlations. By mapping the entire topology of a Kubernetes environment, Dynatrace Intelligence can pinpoint the exact service or infrastructure component for an issue, eliminating the need for manual war rooms.” A complimentary copy of the 2026 GigaOm Radar Report for Kubernetes Observability is available here. About Dynatrace
Dynatrace is advancing observability for today’s digital businesses, helping to transform the complexity of modern digital ecosystems into powerful business assets. By leveraging AI-powered insights, Dynatrace enables organizations to analyze, automate, and innovate faster to drive their business forward. To learn more about how Dynatrace can help your business, visit www.dynatrace.com, visit our blog and follow us on LinkedIn and X @dynatrace. Curious to see how you can simplify your cloud and maximize the impact of your digital teams? Let us show you. Sign up for a 15-day Dynatrace trial. Dynatrace and the Dynatrace logo are trademarks of the Dynatrace, Inc. group of companies. All other trademarks are the property of their respective owners. © 2026 Dynatrace LLC. View source version on businesswire.com: https://www.businesswire.com/news/home/20260508683888/en/ Media Relations:
Dynatrace PR Team
pr-team@dynatrace.com Original: Dynatrace Named a Leader and an Outperformer for the Second Consecutive Year in the 2026 GigaOm Radar for Kubernetes Observability

Dynatrace Acknowledges Shareholder Letter and Highlights Continued Value CreationApril 28, 2026 1:04 PM
Business Wire
Dynatrace (NYSE: DT), the leading AI-powered observability platform, today issued the following statement in response to the press release and related letter issued by Starboard Value LP (“Starboard”).


Dynatrace’s Board of Directors and management team are committed to acting in the best interests of the company and its shareholders. Dynatrace regularly engages with shareholders and values their input toward the common goal of enhancing value. To that end, members of Dynatrace have met with Starboard recently for introductory meetings and will continue to engage with them to better understand their views about our business and evaluate their ideas.


The Dynatrace Board and management team have a proven record of delivering balanced growth, profitability, and free cash flow reflecting strong execution against our strategic plan to drive sustainable, long-term value.



We delivered three consecutive quarters of 16% ARR growth through the third quarter of fiscal 2026 on a constant currency basis.



For the third quarter of fiscal 2026 compared to the same period four years prior, we doubled revenue to an annualized run rate of over $2 billion and we expanded non-GAAP operating margins by over 400 basis points.



Our operating margin profile is well above our peer group and software companies of similar size and scale. For the third quarter of fiscal 2026, we reported a non-GAAP operating margin of 29% and a pre-tax free cash flow margin of 30%, each on a trailing 12-month basis.



We continue to make strong progress against our strategic priorities. Dynatrace today benefits from a strong recurring subscription revenue stream, and we are confident that our go-to-market strategy will enable us to fully realize the value potential in our markets.


The Dynatrace platform combines broad and deep observability, continuous runtime application security, and advanced agentic AI operations to deliver answers and intelligent automation across IT operations, development, security, business, and executive teams. This unified approach enables organizations to optimize their rapidly evolving AI, cloud, and IT operations, accelerate secure software delivery, and improve digital performance.


As we invest in our long-term growth opportunities, we are cognizant of the importance of balance in our capital allocation priorities. We initiated a share repurchase program in May 2024 for $500 million and completed the program in February 2026. We announced a new $1 billion share repurchase program in February 2026, doubling the size of the prior authorization. Our Board and management team will continue to leverage Dynatrace’s strong balance sheet and cash flow generation capacity to demonstrate conviction in the company’s ability to deliver long-term value to its shareholders.


We will continue to review our strategic opportunities and capital allocation with a priority of driving sustainable returns. We look forward to continuing our dialogue with Starboard and our other shareholders as we execute on our strategic plan.


Non-GAAP Financial Measures


In addition to disclosing financial measures prepared in accordance with GAAP, this press release contains certain non-GAAP financial measures as defined by Regulation G, including non-GAAP operating margin and pre-tax free cash flow margin. We also use or discuss non-GAAP financial measures in conference calls, slide presentations and webcasts. For additional information, see the appendix to this press release.


About Dynatrace


Dynatrace is advancing observability for today’s digital businesses, helping to transform the complexity of modern digital ecosystems into powerful business assets. By leveraging AI-powered insights, Dynatrace enables organizations to analyze, automate, and innovate faster to drive their business forward. Learn more at www.dynatrace.com.


Dynatrace and the Dynatrace logo are trademarks of the Dynatrace, Inc. group of companies. All other trademarks are the property of their respective owners. © 2026 Dynatrace LLC.


Cautionary Language Concerning Forward-Looking Statements


This press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the company's plans to continue its dialogue with Starboard and other shareholders, the Board’s and management team’s plans to continue leveraging Dynatrace’s strong balance sheet and cash flow generation capacity to demonstrate conviction in the company’s ability to deliver long-term value to its shareholders, and the company’s plans to continue reviewing strategic opportunities and capital allocation with a priority of driving sustainable returns. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as “will,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” or words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control, including the risks set forth under the caption “Risk Factors” in our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, and our other SEC filings. We assume no obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.


APPENDIX


Non-GAAP Financial Measures


We use non-GAAP financial measures for financial and operational decision-making purposes, and as a means to evaluate period-to-period comparisons and liquidity. We believe that these non-GAAP financial measures provide useful information about our operating results, enhance the overall understanding of past financial performance and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making.


The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Our non-GAAP financial measures may not provide information that is directly comparable to similarly titled metrics provided by other companies.


Non-GAAP financial measures used in this press release are defined below. For reconciliations of non-GAAP financial measures used in this press release to their most directly comparable GAAP measures, please see the company’s third quarter fiscal year 2026 earnings presentation dated February 9, 2026 and the separate disclosure posted today on the company’s website, both of which are available at ir.dynatrace.com/financial-information/financial-results.


Definitions - Non-GAAP and Other Metrics


Annual Recurring Revenue (ARR) is defined as the daily revenue of all subscription agreements that are actively generating revenue as of the last day of the reporting period multiplied by 365. We exclude from our calculation of ARR any revenues derived from month-to-month agreements and/or product usage overage billings.


Constant Currency amounts for ARR are presented to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign exchange rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year.


Non-GAAP Income from Operations is defined as GAAP income from operations adjusted for the following items: share-based compensation; employer payroll taxes on employee stock transactions; amortization of intangibles; transaction, restructuring and other non-recurring or unusual items that may arise from time to time. The related Non-GAAP Operating Margin is non-GAAP income from operations expressed as a percentage of total revenue.


Free Cash Flow is defined as the net cash provided by or used in operating activities less capital expenditures, reflected as purchase of property and equipment and capitalized software additions in our financial statements. Pre-Tax Free Cash Flow is defined as Free Cash Flow adjusted for cash paid for or received from taxes. Pre-Tax Free Cash Flow margin is Pre-Tax Free Cash Flow expressed as a percentage of total revenue.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260428965818/en/
Investor Contact:

Noelle Faris

VP, Investor Relations

ir@dynatrace.com


Media Relations:

Stacy Gong

VP, Corporate Communications

pr-team@dynatrace.com


Original: Dynatrace Acknowledges Shareholder Letter and Highlights Continued Value Creation

Dynatrace shares jump after Starboard Value builds stakeApril 28, 2026 6:25 AM
IH Market News
Dynatrace (NYSE:DT) shares rose more than 8% in premarket trading on Tuesday following a report by The Wall Street Journal that activist investor Starboard Value has acquired a significant position in the AI software company and is advocating for strategic changes to lift its valuation.According to the report, which cited a draft letter from a senior executive, Starboard Value views Dynatrace as undervalued relative to comparable companies.The investor has reportedly been in private discussions with the company’s management over recent months.Starboard is said to be urging the company to speed up its share repurchase efforts and believes Dynatrace has the capacity to return more than $2.5 billion to shareholders over the next three years, the report added.Dynatrace stock price

Original: Dynatrace shares jump after Starboard Value builds stake

Dynatrace to Acquire Bindplane to Establish Telemetry Pipelines for AI and Cloud-Native ObservabilityApril 8, 2026 4:05 PM
Business Wire
Combined platform will deliver an open-standards-based telemetry pipeline for logs, metrics, and traces, providing control from the edge through analytics


Dynatrace (NYSE: DT), the leading AI-powered observability platform, today announced it has signed a definitive agreement to acquire Bindplane, a company whose open-standards-based telemetry pipeline helps organizations capture and manage data at scale.


As cloud-native architectures and AI-driven development accelerate, organizations are seeing rapid growth in telemetry – the operational signals that show what’s happening inside digital systems. Telemetry pipelines that capture, optimize, and deliver this data in an actionable form have become foundational to modern software ecosystems.


Bindplane is a leader in this category. Its technology optimizes and governs telemetry at the edge to improve data quality, reduce ingest costs, and enhance compliance through the removal, masking, and encryption of sensitive data. Bindplane also provides a natural transition path from legacy monitoring tools to modern, cloud-native observability.


"Telemetry pipelines have become a critical observability requirement in the AI era as technology teams must collect and send data to and from a plethora of sources," said Stephen Elliot, Group VP, IDC. “Customers are purchasing solutions to control, enrich, and shape data for effective and efficient security and operations, enabling a scalable foundation for AI strategies.”


“Together, Dynatrace and Bindplane will enable a new level of control over telemetry,” said Steve Tack, Chief Product Officer at Dynatrace. “As data volumes surge and AI becomes central to how teams build and operate software, customers need a unified, open approach to managing their data. Our combined offering will create a market leading foundation that gives customers the clarity and control they need to operate with confidence and drive innovation. The acquisition will allow Dynatrace to accelerate its Log Management and Analytics roadmap as customers will gain expanded ingest capacity across a broader range of data sources and the freedom to route telemetry to any destination.”


“As organizations modernize and adopt AI-driven development, telemetry has become one of their most valuable and yet challenging assets,” said Michael Kelly, CEO at Bindplane. “Bindplane helps customers reduce complexity, improve data quality, and accelerate their digital transformation. We’re excited to join Dynatrace to enable even more teams around the world to turn their data into a strategic advantage.”


The transaction is expected to close later this month, subject to customary closing conditions, and is not expected to have a material impact on Dynatrace’s FY’27 financial results.


To learn more, please visit:



The Dynatrace blog



The Bindplane blog



About Dynatrace


Dynatrace is advancing observability for today’s digital businesses, helping to transform the complexity of modern digital ecosystems into powerful business assets. By leveraging AI-powered insights, Dynatrace enables organizations to analyze, automate, and innovate faster to drive their business forward. Learn more at www.dynatrace.com.


Cautionary Language Concerning Forward-Looking Statements


This press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the anticipated benefits of the proposed acquisition, Dynatrace’s and Bindplane’s respective capabilities, the expected benefits to organizations from using Dynatrace and Bindplane, the expected impact of the proposed acquisition on Dynatrace’s Log Management and Analytics roadmap, and the expected timing for closing the proposed acquisition. These forward-looking statements include all statements that are not historical facts and statements identified by words such as “will,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies, and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies, and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations, or strategies will be attained or achieved. Actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control, including the risks set forth under the caption “Risk Factors” in our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, and our other SEC filings. We assume no obligation to update any forward-looking statements contained in this document as a result of new information, future events, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260407343061/en/
Investor Contact:

Noelle Faris

VP, Investor Relations

Noelle.Faris@dynatrace.com
Media Relations:

Dynatrace PR Team

pr-team@dynatrace.com


Original: Dynatrace to Acquire Bindplane to Establish Telemetry Pipelines for AI and Cloud-Native Observability

https://finance.yahoo.com/news/dynatrace-aws-alliance-reshapes-cloud-131238970.html

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge.

Dynatrace (NYSE:DT) recently announced a milestone partnership with Amazon Web Services, expanding its role in cloud observability.

The company is highlighting new AI driven observability capabilities as part of this deeper collaboration with AWS.

Dynatrace leadership has been discussing these moves and the company’s direction around the time of a major industry conference appearance.

NYSE Content Update: Two MSCI Indexes to Begin Trading on NYSE Arca OptionsFebruary 25, 2026 8:55 AM
PR Newswire (US)

NYSE issues a pre-market daily advisory direct from the trading floor.NEW YORK, Feb. 25, 2026 /PRNewswire/ -- The New York Stock Exchange (NYSE) provides a daily pre-market update directly from the NYSE Trading Floor. Access today's NYSE Pre-market update for market insights before trading begins. 



Ashley Mastronardi delivers the pre-market update on February 25thEquities are higher Wednesday morning as Nvidia prepares to release its fourth quarter earnings after market close.MSCI Emerging Markets Index Options and MSCI EAFE Index Options are set to begin trading on NYSE Arca Options today under the ticker symbols MXEF and MXEADynatrace (NYSE: DT) CEO Rick McConnell will join NYSE Live today to announce the recent milestone of surpassing $1 billion in lifetime AWS Sales.AI-enabled design leader Canva announced the acquisition of MangoAI and Cavalry to expand its professional creative suite and AI capabilities.Opening Bell
Americares highlights the importance of increasing access to healthcareClosing Bell
Bristol-Myers Squibb (NYSE: BMY) marks its annual meeting of top 100 global leadersFor market insights, IPO activity, and today's opening bell, download the NYSE TV App: TV.NYSE.com














View original content to download multimedia:https://www.prnewswire.com/news-releases/nyse-content-update-two-msci-indexes-to-begin-trading-on-nyse-arca-options-302697102.htmlSOURCE New York Stock Exchange

Original: NYSE Content Update: Two MSCI Indexes to Begin Trading on NYSE Arca Options

UUPS - The share prices were still being pushed down quite a bit before the very good news.

For the fourth quarter, the company projects adjusted earnings in the range of
$0.38 to $0.39 per share
on total revenues between
$518 million and $523 million.

On average, analysts polled expect the company to report earnings of
$0.37 per share on revenues of $514.35 million for the quarter.

Looking ahead to fiscal 2026, the company now projects adjusted earnings
in a range of $1.67 to $1.69 per share
on total revenues between
$2.005 billion and $2.010 billion.

Dynatrace also announced that its Board of Directors has authorized a new
share repurchase program for up to $1 billion
of common stock.

Dynatrace Jumps as Q3 Results Beat Expectations and Full-Year Guidance Is LiftedFebruary 9, 2026 10:01 AM
IH Market News
Dynatrace (NYSE:DT) shares rallied more than 10% in premarket trading on Monday after the AI-driven software group delivered stronger-than-expected third-quarter results for fiscal 2026 and upgraded its outlook for the full year.The observability platform provider reported fiscal Q3 earnings per share of $0.44, ahead of the $0.41 analysts had forecast. Revenue reached $515 million, topping market expectations of $505.8 million.Annual recurring revenue rose 16% on a constant-currency basis, while subscription revenue posted the same 16% growth rate, highlighting continued demand for the company’s AI-powered monitoring tools.Looking to the fourth quarter of fiscal 2026, Dynatrace expects earnings per share in the range of $0.38 to $0.39, compared with consensus estimates of $0.37. Revenue for the quarter is projected between $518 million and $523 million, above the $514.4 million anticipated by analysts.For the full fiscal year, the company raised its earnings outlook to $1.67 to $1.69 per share, up from prior guidance of $1.62 to $1.64 and above the $1.64 consensus estimate.Dynatrace also increased its full-year revenue forecast to between $2.0 billion and $2.01 billion, compared with its earlier range of $1.98 billion to $1.99 billion and analyst expectations of $1.99 billion. Full-year annual recurring revenue is now projected at $2.05 billion to $2.06 billion, an improvement from the previous outlook of $2.01 billion to $2.02 billion.Dynatrace stock price

Original: Dynatrace Jumps as Q3 Results Beat Expectations and Full-Year Guidance Is Lifted

Dynatrace Reports Third Quarter Fiscal Year 2026 Financial ResultsFebruary 9, 2026 6:30 AM
Business Wire
Exceeds high end of guidance across all metrics; raises FY'26 guidance


Delivers ARR growth of 16% on a constant currency basis


Achieves GAAP Operating Margin of 14% and Non-GAAP Operating Margin of 30%


Announces new $1 billion share repurchase program


Dynatrace (NYSE: DT), the leading AI-powered observability platform, today announced financial results for the third quarter of fiscal 2026 ended December 31, 2025.


"Our third quarter results surpassed the high end of our guidance across all top line growth and profitability metrics. Notably, we've generated double-digit net new ARR growth for three consecutive quarters, which reflects the growing number of enterprises adopting Dynatrace as their end-to-end observability platform,” said Rick McConnell, CEO of Dynatrace. “As organizations broadly deploy AI, observability is mission critical to managing the reliability and performance of those workloads. The Dynatrace platform combines the strengths of deterministic and agentic AI to deliver trustworthy insights that drive optimal business outcomes.”


Dynatrace also announced today that its Board of Directors has authorized a new share repurchase program for up to $1 billion of common stock.


"In the last four months, we repurchased over $200 million of Dynatrace stock, significantly accelerating the pace of our repurchases and nearly completing our inaugural $500 million buyback program," said Jim Benson, Chief Financial Officer. "This new $1 billion authorization reflects our conviction in the underlying strength of the business and commitment to driving shareholder value. Our scale, balance sheet, and proven ability to generate strong cash flow allow us to invest for durable long-term growth, while also returning capital to shareholders."


Third Quarter Fiscal 2026 Financial and Other Recent Business Highlights:


All growth rates are compared to the third quarter of fiscal 2025, unless otherwise noted.


Financial Highlights:



Total ARR of $1,972 million, an increase of 20%, or 16% on a constant currency basis



Total revenue of $515 million, an increase of 18%, or 16% on a constant currency basis



Subscription revenue of $493 million, an increase of 18%, or 16% on a constant currency basis



GAAP income from operations of $73 million and non-GAAP income from operations of $153 million



GAAP net income per share of $0.13 and non-GAAP net income per share of $0.44, on a dilutive basis



Business Highlights:



Go-to-market traction:


Closed 12 deals greater than $1 million in ARR in the quarter, 11 of which were in collaboration with partners, and five of which were new logos, contributing to record new logo ARR.



Surpassed the milestone of $100 million in annualized consumption dollars for log management, which continues to be the company's fastest growing major product category.






Product innovations:


Unveiled Dynatrace Intelligence, a new agentic AI-powered operations system that combines deterministic and agentic AI to deliver reliable, autonomous actions at enterprise scale.



Introduced domain specific agents to augment site reliability engineer (SRE), development and security teams with autonomous action.



Expanded cloud-native integrations across Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) to give enterprises a unified view across multi-cloud environments.



Delivered significantly evolved user experience to unify frontend, backend, AI telemetry, database, cloud, and mobile into an active system of control for cloud and AI-native software delivery.



Launched next-generation Real User Monitoring (RUM) capabilities fully integrated into our Grail data lakehouse.






Strategic ecosystem advancements:


Integrated Dynatrace with Amazon Bedrock AgentCore, delivering real-time visibility into autonomous agents and their interactions across AWS services.



Introduced a next-generation cloud operations solution for Microsoft Azure and embedded Dynatrace with Microsoft’s Azure SRE Agent to transform incident management.



Expanded collaboration with GCP, becoming a launch partner for Gemini Command Line Interface (CLI) extensions and Gemini Enterprise to accelerate intelligent automation across GCP environments.






Share Repurchase Program



Dynatrace has substantially completed its $500 million share repurchase program announced in May 2024. During the third quarter of fiscal 2026, Dynatrace spent $160 million to repurchase 3.5 million shares at an average price of $45.31 under that program. From the inception of the program through February 6, 2026, Dynatrace repurchased 10.6 million shares for $495 million at an average price of $46.79.




Share repurchases under the new $1 billion program may be made from time to time on the open market or through privately negotiated transactions, including, without limitation, through Rule 10b5-1 trading plans, any other legally permissible means, or any combination of the foregoing. The share repurchase program has no time limit, does not obligate Dynatrace to acquire a specified number of shares, and may be suspended, modified, or terminated at any time, without prior notice. The number of shares to be repurchased will depend on market conditions and other factors. Repurchases under the program are expected to be funded from a combination of existing cash balances and future cash flow. 





Third Quarter 2026 Financial Highlights




(Unaudited – In thousands, except per share data)








 



 






Three Months Ended December 31,








 






2025






 






2024








Annual recurring revenue (ARR):






 






 






 








Total ARR






$






1,972,283






 






 






$






1,647,412






 








Year-over-Year Increase






 






20






%






 






 








Year-over-Year Increase - constant currency (*)






 






16






%






 






 








 






 






 






 








Revenue:






 






 






 








Total revenue






$






515,473






 






 






$






436,169






 








Year-over-Year Increase






 






18






%






 






 








Year-over-Year Increase - constant currency (*)






 






16






%






 






 








 






 






 






 








Subscription revenue






$






493,372






 






 






$






417,207






 








Year-over-Year Increase






 






18






%






 






 








Year-over-Year Increase - constant currency (*)






 






16






%






 






 








 






 






 






 








GAAP Financial Measures:






 






 






 








GAAP income from operations






$






72,738






 






 






$






47,464






 








GAAP operating margin






 






14






%






 






 






11






%








 






 






 






 








GAAP net income






$






40,055






 






 






$






361,752






 








 






 






 






 








GAAP net income per share - diluted






$






0.13






 






 






$






1.19






 








 






 






 






 








GAAP shares outstanding - diluted






 






303,250






 






 






 






303,467






 








 






 






 






 








Net cash provided by operating activities






$






33,780






 






 






$






42,238






 








Net cash provided by operating activities as a percent of revenue






 






7






%






 






 






10






%








 






 






 






 








Non-GAAP Financial Measures (*):






 






 






 








Non-GAAP income from operations






$






153,428






 






 






$






130,734






 








Non-GAAP operating margin






 






30






%






 






 






30






%








 






 






 






 








Non-GAAP net income






$






134,666






 






 






$






111,679






 








 






 






 






 








Non-GAAP net income per share - diluted






$






0.44






 






 






$






0.37






 








 






 






 






 








Non-GAAP shares outstanding - diluted






 






303,250






 






 






 






303,467






 








 






 






 






 








Free Cash Flow






$






27,234






 






 






$






37,569






 








Free Cash Flow margin






 






5






%






 






 






9






%














 



* For additional information, please see the "Non-GAAP Financial Measures" and "Definitions - Non-GAAP and Other Metrics" sections of this press release.







Financial Outlook


Based on information available as of February 9, 2026, Dynatrace is issuing guidance for the fourth quarter and updating its prior guidance for full year fiscal 2026 in the tables below.


This guidance is based on the average foreign exchange rates for the month of January 2026. We expect foreign exchange to be a tailwind of approximately $49 million on ARR and approximately $37 million on revenue for fiscal 2026 compared to ARR and revenue at constant currency. This represents an incremental tailwind of approximately $11 million to ARR and $3 million to revenue compared to our prior guidance. This guidance also excludes the impact of any share repurchases after December 31, 2025.


Growth rates for ARR, Total revenue, and Subscription revenue are presented in constant currency to provide better visibility into the underlying growth of the business.




All growth rates below are compared to the full year and fourth quarter of fiscal 2025.












 



(In millions, except per share data)






Current Guidance

Fiscal 2026






 






Prior Guidance

Fiscal 2026*






 






Guidance Change

at Midpoint**








ARR






$2,053 - $2,061






 






$2,010 - $2,025






 






$40








As reported






18.5% - 19%






 






16% - 17%






 






225 bps








Constant currency






15.5% - 16%






 






14% - 15%






 






125 bps








Total revenue






$2,005 - $2,010






 






$1,985 - $1,995






 






$18








As reported






18% - 18.5%






 






17% - 17.5%






 






100 bps








Constant currency






16%






 






15% - 15.5%






 






75 bps








Subscription revenue






$1,917 - $1,922






 






$1,898 - $1,908






 






$17








As reported






18% - 18.5%






 






17% - 17.5%






 






100 bps








Constant currency






16%






 






15% - 15.5%






 






75 bps








Non-GAAP income from operations






$582 - $587






 






$571 - $581






 






$9








Non-GAAP operating margin






29%






 






29%






 






—








Non-GAAP net income






$508 - $513






 






$497 - $506






 






$9








Non-GAAP net income per diluted share






$1.67 - $1.69






 






$1.62 - $1.64






 






$0.05








Diluted weighted average shares outstanding






304






 






307 - 308






 






(4)








Free cash flow






$520 - $525






 






$505 - $515






 






$13








Free cash flow margin






26%






 






26%






 






—












 



*Prior guidance was issued on November 5, 2025.

**Guidance change at midpoint is rounded to the nearest million.









(In millions, except per share data)






Q4 Fiscal 2026

Guidance









Total revenue






$518 - $523









As reported






16% - 17%









Constant currency






13% - 14%









Subscription revenue






$493 - $498









As reported






16% - 17%









Constant currency






13% - 14%









Non-GAAP income from operations






$133 - $138









Non-GAAP operating margin






26%









Non-GAAP net income






$115 - $120









Non-GAAP net income per diluted share






$0.38 - $0.39









Diluted weighted average shares outstanding






303 - 304








Conference Call and Webcast Information


Dynatrace will host a conference call and live webcast to discuss its results and business outlook at 8:00 a.m. Eastern Time today, February 9, 2026. To access the conference call from the U.S. and Canada, dial (866) 405-1247, or internationally, dial (201) 689-8045 with event confirmation #: 13758089. The call will also be available live via webcast on the company’s website, ir.dynatrace.com.


An audio replay of the call will also be available until 11:59 p.m. Eastern Time on May 9, 2026 by dialing (877) 660-6853 from the U.S. and Canada, or for international callers by dialing (201) 612-7415 and entering event confirmation #: 13758089. In addition, an archived webcast will be available at ir.dynatrace.com.


We announce material financial information to our investors using our Investor Relations website, press releases, SEC filings and public conference calls and webcasts. We also use these channels to disclose information about the company, our planned financial and other announcements, attendance at upcoming investor and industry conferences, and for complying with our disclosure obligations under Regulation FD.


Non-GAAP Financial Measures


In addition to disclosing financial measures prepared in accordance with GAAP, this press release and the accompanying tables contain certain non-GAAP financial measures as defined by Regulation G, including non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share, free cash flow, and free cash flow margin. We also use or discuss non-GAAP financial measures in conference calls, slide presentations and webcasts.


We use these non-GAAP financial measures for financial and operational decision-making purposes, and as a means to evaluate period-to-period comparisons and liquidity. We believe that these non-GAAP financial measures provide useful information about our operating results, enhance the overall understanding of past financial performance and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making.


The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Our non-GAAP financial measures may not provide information that is directly comparable to similarly titled metrics provided by other companies.


Non-GAAP financial measures are defined in this press release and the tables included in this press release include reconciliations of historical non-GAAP financial measures to their most directly comparable GAAP measures.


We also include non-GAAP financial measures in our financial outlook included in this press release. Reconciliations of forward-looking non-GAAP income from operations, non-GAAP net income, non-GAAP net income per diluted share, and free cash flow guidance to the most directly comparable GAAP measures are not available without unreasonable efforts due to the high variability, complexity, and low visibility with respect to the charges excluded from these non-GAAP measures; in particular, the measures and effects of share-based compensation expense, employer taxes and tax deductions specific to equity compensation awards that are directly impacted by future hiring, turnover and retention needs, as well as unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.


Definitions - Non-GAAP and Other Metrics


Annual Recurring Revenue (ARR) is defined as the daily revenue of all subscription agreements that are actively generating revenue as of the last day of the reporting period multiplied by 365. We exclude from our calculation of ARR any revenues derived from month-to-month agreements and/or product usage overage billings.


Constant Currency amounts for ARR, Total revenue, and Subscription revenue are presented to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign exchange rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year.


Non-GAAP Income from Operations is defined as GAAP income from operations adjusted for the following items: share-based compensation; employer payroll taxes on employee stock transactions; amortization of intangibles; transaction, restructuring and other non-recurring or unusual items that may arise from time to time. The related Non-GAAP Operating Margin is non-GAAP income from operations expressed as a percentage of total revenue.


Non-GAAP Net Income is defined as GAAP net income adjusted for the following items: income tax expense/benefit; non-GAAP effective cash taxes; net interest expense and income; net cash received from and paid for interest; share-based compensation; employer payroll taxes on employee stock transactions, amortization of intangibles; gains and losses on currency translation; and transaction, restructuring and other non-recurring or unusual items that may arise from time to time. Non-GAAP net income per diluted share is calculated as non-GAAP net income divided by the diluted weighted average shares outstanding used to compute GAAP net income per diluted share.


Free Cash Flow is defined as the net cash provided by or used in operating activities less capital expenditures, reflected as purchase of property and equipment and capitalized software additions in our financial statements. The related margin is free cash flow expressed as a percentage of total revenue.


About Dynatrace


Dynatrace (NYSE: DT) is advancing observability for today’s digital businesses, helping to transform the complexity of modern digital ecosystems into powerful business assets. By leveraging AI-powered insights, Dynatrace enables organizations to analyze, automate, and innovate faster to drive their business forward. To learn more about Dynatrace, visit www.dynatrace.com, visit our blog and follow us on LinkedIn and X @dynatrace.


Dynatrace and the Dynatrace logo are trademarks of the Dynatrace, Inc. group of companies. All other trademarks are the property of their respective owners. © 2026 Dynatrace LLC.


Cautionary Language Concerning Forward-Looking Statements


This press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the company's new share repurchase program, its ability to invest for durable long-term growth while also returning capital to shareholders, the expected and current benefits that we believe organizations receive from using the Dynatrace platform and offerings of our partners and other companies with which we collaborate and integrate, and our financial and business outlook, including our financial guidance for the full year and fourth quarter of fiscal 2026. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as “will,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” or words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation, our ability to maintain our revenue growth rates in future periods; market adoption of our product offerings; continued demand for, and spending on, our solutions; our ability to innovate and develop solutions that meet customer needs as cloud and AI workloads grow rapidly; the ability of our platform and solutions to effectively interoperate with customers’ IT infrastructures; our ability to acquire new customers and retain and expand our relationships with existing customers; our ability to expand our sales and marketing capabilities; our ability to compete; our ability to maintain successful relationships with partners; security breaches, other security incidents and any real or perceived errors, failures, defects or vulnerabilities in our solutions; our ability to protect our intellectual property; our ability to hire and retain necessary qualified employees to grow our business and expand our operations; our ability to successfully complete acquisitions and to integrate newly acquired businesses and offerings; the effect on our business of the macroeconomic environment, associated global economic conditions and geopolitical disruption; and other risks set forth under the caption “Risk Factors” in our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, and our other SEC filings. We assume no obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.




DYNATRACE, INC.




CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS




(Unaudited – In thousands, except per share data)










 



 






Three Months Ended

December 31,






 






Nine Months Ended

December 31,








 






2025






 






2024






 






2025






 






2024








Revenue:






 






 






 






 






 






 






 








Subscription






$






493,372






 






 






$






417,207






 






 






$






1,423,968






 






 






$






1,198,593






 








Service






 






22,101






 






 






 






18,962






 






 






 






62,703






 






 






 






54,925






 








Total revenue






 






515,473






 






 






 






436,169






 






 






 






1,486,671






 






 






 






1,253,518






 








Cost of revenue:






 






 






 






 






 






 






 








Cost of subscription






 






73,833






 






 






 






60,666






 






 






 






207,255






 






 






 






170,034






 








Cost of service






 






21,137






 






 






 






18,139






 






 






 






60,993






 






 






 






52,536






 








Amortization of acquired technology






 






866






 






 






 






3,756






 






 






 






2,561






 






 






 






12,528






 








Total cost of revenue






 






95,836






 






 






 






82,561






 






 






 






270,809






 






 






 






235,098






 








Gross profit






 






419,637






 






 






 






353,608






 






 






 






1,215,862






 






 






 






1,018,420






 








 






 






 






 






 






 






 






 








Operating expenses:






 






 






 






 






 






 






 








Research and development






 






120,569






 






 






 






98,343






 






 






 






343,733






 






 






 






281,287






 








Sales and marketing






 






174,058






 






 






 






154,472






 






 






 






507,047






 






 






 






443,802






 








General and administrative






 






52,260






 






 






 






49,354






 






 






 






157,001






 






 






 






143,285






 








Amortization of other intangibles






 






12






 






 






 






3,975






 






 






 






36






 






 






 






13,527






 








Total operating expenses






 






346,899






 






 






 






306,144






 






 






 






1,007,817






 






 






 






881,901






 








Income from operations






 






72,738






 






 






 






47,464






 






 






 






208,045






 






 






 






136,519






 








Interest income, net






 






12,083






 






 






 






11,726






 






 






 






37,620






 






 






 






37,351






 








Other (expense) income, net






 






(370






)






 






 






(2,072






)






 






 






7,281






 






 






 






(6,145






)








Income before income taxes






 






84,451






 






 






 






57,118






 






 






 






252,946






 






 






 






167,725






 








Income tax (expense) benefit






 






(44,396






)






 






 






304,634






 






 






 






(107,693






)






 






 






276,655






 








Net income






$






40,055






 






 






$






361,752






 






 






$






145,253






 






 






$






444,380






 








Net income per share:






 






 






 






 






 






 






 








Basic






$






0.13






 






 






$






1.21






 






 






$






0.48






 






 






$






1.49






 








Diluted






$






0.13






 






 






$






1.19






 






 






$






0.48






 






 






$






1.47






 








Weighted average shares outstanding:






 






 






 






 






 






 






 








Basic






 






301,127






 






 






 






298,646






 






 






 






300,939






 






 






 






298,049






 








Diluted






 






303,250






 






 






 






303,467






 






 






 






304,765






 






 






 






302,815






 









UNAUDITED SHARE-BASED COMPENSATION












 



 






Three Months Ended

December 31,







 






Nine Months Ended

December 31,









 






2025






 






2024






 






2025






 






2024








Cost of revenue






$






10,792







 






$






9,821







 






$






30,657







 






$






27,265









Research and development






 






29,160







 






 






26,582







 






 






85,739







 






 






74,769









Sales and marketing






 






21,883







 






 






20,709







 






 






64,493







 






 






57,481









General and administrative






 






16,083







 






 






15,027







 






 






45,738







 






 






41,984









Total share-based compensation






$






77,918







 






$






72,139







 






$






226,627







 






$






201,499










DYNATRACE, INC.




CONDENSED CONSOLIDATED BALANCE SHEETS




(In thousands, except share and per share data)










 



 






December

31, 2025






 






March 31, 2025








 






(unaudited)






 






 








Assets






 






 






 








Current assets:






 






 






 








Cash and cash equivalents






$






1,091,534






 






 






$






1,017,039






 








Short-term investments






 






96,780






 






 






 






96,189






 








Accounts receivable, net






 






468,041






 






 






 






624,437






 








Deferred commissions, current






 






123,565






 






 






 






109,895






 








Prepaid expenses and other current assets






 






87,152






 






 






 






83,901






 








Total current assets






 






1,867,072






 






 






 






1,931,461






 








Long-term investments






 






58,291






 






 






 






51,648






 








Property and equipment, net






 






67,713






 






 






 






61,522






 








Operating lease right-of-use assets, net






 






76,424






 






 






 






67,479






 








Goodwill






 






1,345,187






 






 






 






1,336,435






 








Intangible assets, net






 






22,868






 






 






 






25,534






 








Deferred tax assets, net






 






514,237






 






 






 






529,550






 








Deferred commissions, non-current






 






111,045






 






 






 






95,297






 








Other assets






 






37,823






 






 






 






40,752






 








Total assets






$






4,100,660






 






 






$






4,139,678






 








 






 






 






 








Liabilities and shareholders' equity






 






 






 








Current liabilities:






 






 






 








Accounts payable






$






11,103






 






 






$






27,286






 








Accrued expenses, current






 






240,018






 






 






 






252,503






 








Deferred revenue, current






 






924,672






 






 






 






1,087,518






 








Operating lease liabilities, current






 






17,543






 






 






 






13,979






 








Total current liabilities






 






1,193,336






 






 






 






1,381,286






 








Deferred revenue, non-current






 






52,790






 






 






 






50,989






 








Accrued expenses, non-current






 






35,981






 






 






 






24,452






 








Operating lease liabilities, non-current






 






68,276






 






 






 






61,384






 








Deferred tax liabilities






 






1,198






 






 






 






419






 








Total liabilities






 






1,351,581






 






 






 






1,518,530






 








 






 






 






 








Shareholders' equity:






 






 






 








Common shares, $0.001 par value, 600,000,000 shares authorized, 299,571,042 and 299,813,048 shares issued and outstanding at December 31, 2025 and March 31, 2025, respectively






 






300






 






 






 






300






 








Additional paid-in capital






 






2,352,238






 






 






 






2,370,563






 








Retained earnings






 






430,180






 






 






 






284,927






 








Accumulated other comprehensive loss






 






(33,639






)






 






 






(34,642






)








Total shareholders' equity






 






2,749,079






 






 






 






2,621,148






 








Total liabilities and shareholders' equity






$






4,100,660






 






 






$






4,139,678






 









DYNATRACE, INC.




CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS




(Unaudited – In thousands)










 



 






Three Months Ended

December 31,






 






Nine Months Ended

December 31,








 






2025






 






2024






 






2025






 






2024








Cash flows from operating activities:






 






 






 






 






 






 






 








Net income






$






40,055






 






 






$






361,752






 






 






$






145,253






 






 






$






444,380






 








Adjustments to reconcile net income to cash provided by operations:






 






 






 






 






 






 






 








Depreciation






 






4,336






 






 






 






5,216






 






 






 






13,744






 






 






 






13,851






 








Amortization






 






1,395






 






 






 






8,247






 






 






 






4,151






 






 






 






27,603






 








Share-based compensation






 






77,918






 






 






 






72,139






 






 






 






226,627






 






 






 






201,499






 








Deferred income taxes






 






9,580






 






 






 






(339,736






)






 






 






18,474






 






 






 






(378,795






)








Other






 






123






 






 






 






1,002






 






 






 






(7,917






)






 






 






4,135






 








Net change in operating assets and liabilities:






 






 






 






 






 






 






 








Accounts receivable






 






(152,513






)






 






 






(95,826






)






 






 






168,032






 






 






 






204,251






 








Deferred commissions






 






(600






)






 






 






4,131






 






 






 






(23,854






)






 






 






(3,035






)








Prepaid expenses and other assets






 






4,859






 






 






 






(7,500






)






 






 






9,004






 






 






 






(21,573






)








Accounts payable and accrued expenses






 






3,307






 






 






 






2,871






 






 






 






(30,448






)






 






 






(27,608






)








Operating leases, net






 






710






 






 






 






(1,031






)






 






 






1,456






 






 






 






434






 








Deferred revenue






 






44,610






 






 






 






30,973






 






 






 






(189,033






)






 






 






(168,513






)








Net cash provided by operating activities






 






33,780






 






 






 






42,238






 






 






 






335,489






 






 






 






296,629






 








 






 






 






 






 






 






 






 








Cash flows from investing activities:






 






 






 






 






 






 






 








Purchase of property and equipment






 






(6,546






)






 






 






(4,669






)






 






 






(18,215






)






 






 






(11,540






)








Capitalized software additions






 






—






 






 






 






—






 






 






 






(194






)






 






 






—






 








Acquisition of a business, net of cash acquired






 






—






 






 






 






—






 






 






 






—






 






 






 






(100






)








Purchases of investments






 






(45,094






)






 






 






(27,965






)






 






 






(108,858






)






 






 






(107,989






)








Proceeds from sales and maturities of investments






 






34,760






 






 






 






27,770






 






 






 






103,882






 






 






 






68,145






 








Net cash used in investing activities






 






(16,880






)






 






 






(4,864






)






 






 






(23,385






)






 






 






(51,484






)








 






 






 






 






 






 






 






 








Cash flows from financing activities:






 






 






 






 






 






 






 








Proceeds from employee stock purchase plan






 






12,519






 






 






 






10,770






 






 






 






24,390






 






 






 






21,159






 








Proceeds from exercise of stock options






 






963






 






 






 






6,130






 






 






 






4,701






 






 






 






14,903






 








Repurchases of common stock






 






(159,999






)






 






 






(39,993






)






 






 






(255,033






)






 






 






(130,100






)








Taxes paid related to net share settlement of equity awards






 






(3,296






)






 






 






(4,372






)






 






 






(19,634






)






 






 






(16,338






)








Other






 






(552






)






 






 






—






 






 






 






(3,866






)






 






 






(1,656






)








Net cash used in financing activities






 






(150,365






)






 






 






(27,465






)






 






 






(249,442






)






 






 






(112,032






)








 






 






 






 






 






 






 






 








Effect of exchange rates on cash and cash equivalents






 






(24






)






 






 






(9,604






)






 






 






11,833






 






 






 






(4,614






)








 






 






 






 






 






 






 






 








Net (decrease) increase in cash and cash equivalents






 






(133,489






)






 






 






305






 






 






 






74,495






 






 






 






128,499






 








 






 






 






 






 






 






 






 








Cash and cash equivalents, beginning of period






 






1,225,023






 






 






 






907,177






 






 






 






1,017,039






 






 






 






778,983






 








Cash and cash equivalents, end of period






$






1,091,534






 






 






$






907,482






 






 






$






1,091,534






 






 






$






907,482






 









DYNATRACE, INC.




GAAP to Non-GAAP Reconciliations




(Unaudited - In thousands, except percentages)










 



 






Three Months Ended

December 31,






 






Nine Months Ended

December 31,








 






2025






 






2024






 






2025






 






2024








Non-GAAP cost of revenue:






 






 






 






 






 






 






 








Cost of revenue






$






95,836






 






 






$






82,561






 






 






$






270,809






 






 






$






235,098






 








Share-based compensation






 






(10,792






)






 






 






(9,821






)






 






 






(30,657






)






 






 






(27,265






)








Employer payroll taxes on employee stock transactions






 






(264






)






 






 






(469






)






 






 






(1,969






)






 






 






(1,786






)








Amortization of intangibles






 






(866






)






 






 






(3,756






)






 






 






(2,561






)






 






 






(12,528






)








Non-GAAP cost of revenue






$






83,914






 






 






$






68,515






 






 






$






235,622






 






 






$






193,519






 








 






 






 






 






 






 






 






 








Non-GAAP gross profit:






 






 






 






 






 






 






 








Gross profit






$






419,637






 






 






$






353,608






 






 






$






1,215,862






 






 






$






1,018,420






 








Share-based compensation






 






10,792






 






 






 






9,821






 






 






 






30,657






 






 






 






27,265






 








Employer payroll taxes on employee stock transactions






 






264






 






 






 






469






 






 






 






1,969






 






 






 






1,786






 








Amortization of intangibles






 






866






 






 






 






3,756






 






 






 






2,561






 






 






 






12,528






 








Non-GAAP gross profit






$






431,559






 






 






$






367,654






 






 






$






1,251,049






 






 






$






1,059,999






 








 






 






 






 






 






 






 






 








GAAP gross margin






 






81






%






 






 






81






%






 






 






82






%






 






 






81






%








Non-GAAP gross margin






 






84






%






 






 






84






%






 






 






84






%






 






 






85






%








 






 






 






 






 






 






 






 








Non-GAAP operating expenses:






 






 






 






 






 






 






 








Operating expenses






$






346,899






 






 






$






306,144






 






 






$






1,007,817






 






 






$






881,901






 








Share-based compensation






 






(67,126






)






 






 






(62,318






)






 






 






(195,970






)






 






 






(174,234






)








Employer payroll taxes on employee stock transactions






 






(1,630






)






 






 






(2,825






)






 






 






(10,115






)






 






 






(9,688






)








Amortization of intangibles






 






(12






)






 






 






(3,975






)






 






 






(36






)






 






 






(13,527






)








Transaction, restructuring, and other






 






—






 






 






 






(106






)






 






 






—






 






 






 






(106






)








Non-GAAP operating expenses






$






278,131






 






 






$






236,920






 






 






$






801,696






 






 






$






684,346






 








 






 






 






 






 






 






 






 








Non-GAAP income from operations:






 






 






 






 






 






 






 








Income from operations






$






72,738






 






 






$






47,464






 






 






$






208,045






 






 






$






136,519






 








Share-based compensation






 






77,918






 






 






 






72,139






 






 






 






226,627






 






 






 






201,499






 








Employer payroll taxes on employee stock transactions






 






1,894






 






 






 






3,294






 






 






 






12,084






 






 






 






11,474






 








Amortization of intangibles






 






878






 






 






 






7,731






 






 






 






2,597






 






 






 






26,055






 








Transaction, restructuring, and other






 






—






 






 






 






106






 






 






 






—






 






 






 






106






 








Non-GAAP income from operations






$






153,428






 






 






$






130,734






 






 






$






449,353






 






 






$






375,653






 








 






 






 






 






 






 






 






 








GAAP operating margin






 






14






%






 






 






11






%






 






 






14






%






 






 






11






%








Non-GAAP operating margin






 






30






%






 






 






30






%






 






 






30






%






 






 






30






%









DYNATRACE, INC.




GAAP to Non-GAAP Reconciliations




(Unaudited - In thousands, except per share data)










 



 






Three Months Ended

December 31,






 






Nine Months Ended

December 31,








 






2025






 






2024






 






2025






 






2024








Non-GAAP net income:






 






 






 






 






 






 






 








Net income






$






40,055






 






 






$






361,752






 






 






 






145,253






 






 






 






444,380






 








Income tax expense (benefit)






 






44,396






 






 






 






(304,634






)






 






 






107,693






 






 






 






(276,655






)








Non-GAAP effective cash tax






 






(30,568






)






 






 






(30,588






)






 






 






(89,361






)






 






 






(88,538






)








Interest income, net






 






(12,083






)






 






 






(11,726






)






 






 






(37,620






)






 






 






(37,351






)








Cash received from interest, net






 






11,806






 






 






 






11,533






 






 






 






33,682






 






 






 






36,151






 








Share-based compensation






 






77,918






 






 






 






72,139






 






 






 






226,627






 






 






 






201,499






 








Employer payroll taxes on employee stock transactions






 






1,894






 






 






 






3,294






 






 






 






12,084






 






 






 






11,474






 








Amortization of intangibles






 






878






 






 






 






7,731






 






 






 






2,597






 






 






 






26,055






 








Transaction, restructuring, and other






 






—






 






 






 






106






 






 






 






—






 






 






 






106






 








Loss (gain) on currency translation






 






370






 






 






 






2,072






 






 






 






(7,281






)






 






 






6,145






 








Non-GAAP net income






$






134,666






 






 






$






111,679






 






 






$






393,674






 






 






$






323,266






 








 






 






 






 






 






 






 






 








Share count:






 






 






 






 






 






 






 








Weighted-average shares outstanding - basic






 






301,127






 






 






 






298,646






 






 






 






300,939






 






 






 






298,049






 








Weighted-average shares outstanding - diluted






 






303,250






 






 






 






303,467






 






 






 






304,765






 






 






 






302,815






 








 






 






 






 






 






 






 






 








Shares used in non-GAAP per share calculations:






 






 






 






 






 






 






 








Weighted-average shares outstanding - basic






 






301,127






 






 






 






298,646






 






 






 






300,939






 






 






 






298,049






 








Weighted-average shares outstanding - diluted






 






303,250






 






 






 






303,467






 






 






 






304,765






 






 






 






302,815






 








 






 






 






 






 






 






 






 








Non-GAAP net income per share:






 






 






 






 






 






 






 








Net income per share - basic






$






0.13






 






 






$






1.21






 






 






$






0.48






 






 






$






1.49






 








Net income per share - diluted






$






0.13






 






 






$






1.19






 






 






$






0.48






 






 






$






1.47






 








Non-GAAP net income per share - basic






$






0.45






 






 






$






0.37






 






 






$






1.31






 






 






$






1.08






 








Non-GAAP net income per share - diluted






$






0.44






 






 






$






0.37






 






 






$






1.29






 






 






$






1.07






 









 






Three Months Ended

December 31,







Nine Months Ended

December 31,








 






2025






 






2024







2025






 






2024








Free cash flow:






 






 






 







 






 






 








Net cash provided by operating activities






$






33,780






 






 






$






42,238






 







$






335,489






 






 






$






296,629






 








Purchase of property and equipment






 






(6,546






)






 






 






(4,669






)







 






(18,215






)






 






 






(11,540






)








Capitalized software additions






 






—






 






 






 






—






 







 






(194






)






 






 






—






 








Free cash flow






$






27,234






 






 






$






37,569






 







$






317,080






 






 






$






285,089






 







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260209016398/en/
Investor Contact:

Noelle Faris

VP, Investor Relations

ir@dynatrace.com


Media Contact:

Stacy Gong

VP, Corporate Communications

pr-team@dynatrace.com


Original: Dynatrace Reports Third Quarter Fiscal Year 2026 Financial Results