Dynatrace Inc
Q1 2027 Earnings
Market Reaction
Did DT Beat Earnings? Q1 2027 Results
Dynatrace delivered a clean beat across the board in its fiscal first quarter of 2027, with earnings per share of $0.48 topping the $0.44 consensus estimate by 8.16% and revenue of $554.55 million edging past expectations by 0.93%, extending the company's streak of consensus EPS beats to four consecutive quarters. The 16.2% year-over-year revenue gain reflected sustained enterprise appetite for Dynatrace's AI-powered observability platform, with total ARR climbing 17% to $2.14 billion and record new logo ARR growth signaling that customer acquisition is accelerating alongside expansion within existing accounts. A standout detail from the quarter: annualized logs consumption nearly doubled in two quarters to $200.00 million, illustrating how the company's shift toward consumption-based models is gaining tangible traction, a dynamic that had investors watching ARR closely heading into the print. Dynatrace raised its full-year non-GAAP EPS guidance to $1.97 to $1.99, even as foreign exchange headwinds prompted modest reductions to ARR and revenue midpoints, with constant currency ARR growth guidance held firm at 15.5% to 16.5%.
- 41% organic net new ARR growth
- Record new logo ARR growth of more than 160%
- Four consecutive quarters of acceleration in trailing-twelve-month organic net new ARR growth
- Annualized logs consumption nearly doubled in two quarters to $200 million, growing well over 100% YoY
- Strengthening enterprise demand as customers expand cloud-native workloads and accelerate AI initiatives
“Dynatrace delivered an exceptional quarter, led by 41% organic net new ARR growth. Demand continues to strengthen as enterprises expand cloud-native workloads and accelerate their AI initiatives. As software becomes increasingly AI-driven, customers are turning to Dynatrace for the deterministic answers, contextual analytics, and intelligent automation required to operate at scale, and we are increasingly confident in the opportunity ahead.”
Dynatrace CEO, on the earnings call
Forward Guidance & Outlook
For Q2 FY27, Dynatrace guides total revenue of $565–$570 million (14%–15% growth, 15%–16% constant currency), subscription revenue of $540–$545 million, non-GAAP operating income of $166–$170 million (29.5%–30% margin), and non-GAAP EPS of $0.48–$0.49. For full-year FY27, the company updated guidance to: ARR of $2,359–$2,379 million (15%–16% growth, 15.5%–16.5% constant currency), total revenue of $2,306–$2,320 million (14%–15% growth), subscription revenue of $2,206–$2,220 million, non-GAAP operating income of $682–$690 million (29.5%–29.75% margin), non-GAAP EPS of $1.97–$1.99, and adjusted free cash flow of $610–$615 million (26.5% margin). FX is expected to be a headwind of approximately $14 million on ARR and $4 million on revenue for FY27, representing an incremental headwind of $23 million to ARR and $19 million to revenue versus prior guidance.
DT YoY Financials
DT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.