Dynatrace Reports Fourth Quarter and Full Year Fiscal 2026 Financial Results

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

BOSTON: 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.