Dynatrace

DT Q1 2026 Earnings

Reported Aug 6, 2025 at 6:32 AM ET · SEC Source

Q1 26 EPS

$0.42

BEAT +11.55%

Est. $0.38

Q1 26 Revenue

$477.3M

BEAT +2.05%

Est. $467.8M

vs S&P Since Q1 26

-36.4%

TRAILING MARKET

DT -20.5% vs S&P +15.9%

Market Reaction

Did DT Beat Earnings? Q1 2026 Results

Dynatrace kicked off fiscal 2026 with a decidedly strong first quarter, posting non-GAAP diluted EPS of $0.42 against a consensus estimate of $0.38, a beat of 11.55%, while revenue of $477.35 million topped expectations by 2.05% and grew 19.6% year-o… Read more Dynatrace kicked off fiscal 2026 with a decidedly strong first quarter, posting non-GAAP diluted EPS of $0.42 against a consensus estimate of $0.38, a beat of 11.55%, while revenue of $477.35 million topped expectations by 2.05% and grew 19.6% year-over-year. The primary engine behind the results was accelerating platform adoption, with Annual Recurring Revenue reaching $1.82 billion, up 18% year-over-year, and the company's DPS licensing model now accounting for over 65% of ARR as customers consolidated onto its unified observability platform. Notably, the quarter featured 12 expansion deals greater than $1 million in annual contract value, with half of those involving significant log management deployments, a product area that analysts have flagged as a key growth catalyst. Free cash flow was robust at $262.02 million, representing a 55% margin. Encouraged by the momentum, Dynatrace raised its full-year fiscal 2026 revenue guidance to $1.97 billion to $1.99 billion and lifted its non-GAAP EPS outlook to $1.58 to $1.61, signaling continued confidence in the durability of demand.

Key Takeaways

  • 12 expansion deals greater than $1 million in ACV during the quarter
  • Accelerating log management deployment with 50% of large deals featuring significant Log Management
  • DPS licensing model adoption: over 45% of customer base and over 65% of ARR
  • 10 of 12 large expansion deals involved partner collaboration
  • Subscription revenue growth of 20% YoY (19% constant currency)
24/7 Wall St

DT YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

DT Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 26 Q4 26

“We delivered a strong start to the fiscal year, exceeding guidance across all our metrics, driven by a large number of seven-figure expansion deals and accelerating log management deployment.”

— Rick McConnell, Q1 2026 Earnings Press Release