DT Q2 2026 Earnings
Reported Nov 5, 2025 at 6:49 AM ET · SEC Source
Q2 26 EPS
$0.44
BEAT +7.53%
Est. $0.41
Q2 26 Revenue
$493.8M
BEAT +1.34%
Est. $487.3M
vs S&P Since Q2 26
-21.2%
TRAILING MARKET
DT -13.0% vs S&P +8.2%
Market Reaction
Did DT Beat Earnings? Q2 2026 Results
Dynatrace turned in a convincing second quarter of fiscal 2026, with both earnings and revenue landing ahead of Wall Street expectations as demand for AI-powered observability continued to build. The enterprise software company posted non-GAAP EPS of… Read more Dynatrace turned in a convincing second quarter of fiscal 2026, with both earnings and revenue landing ahead of Wall Street expectations as demand for AI-powered observability continued to build. The enterprise software company posted non-GAAP EPS of $0.44, beating the $0.41 consensus estimate by 7.53%, while revenue climbed 18.1% year-over-year to $493.85 million, edging past the $487.34 million consensus by 1.34%. The standout driver was accelerating deal momentum, with annual contract value from seven-figure deals growing 53% year-over-year, as large enterprises consolidated observability tooling onto the Dynatrace platform. Annual recurring revenue reached $1.90 billion, up 17% from a year ago, with 70% of that ARR now flowing through the company's flexible DPS licensing model. Confidence in the trajectory prompted management to raise full-year fiscal 2026 revenue guidance to $1.99 billion to $2.00 billion and lift non-GAAP EPS guidance to $1.62 to $1.64, while third-quarter revenue is expected in the range of $503 million to $508 million.
Key Takeaways
- • Growing demand for end-to-end observability driven by large-scale tool consolidations
- • 53% year-over-year growth in ACV from 7-figure deals
- • DPS licensing model now at 50% of customer base and 70% of ARR
- • Cloud and AI workload growth driving need for AI-powered observability
- • Nearly all large deals leveraging end-to-end observability
DT YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
DT Revenue by Segment
With YoY comparisons, source: SEC Filings
“Our strong second quarter results were fueled by the growing demand for end-to-end observability driven by large-scale tool consolidations. As cloud and AI workloads grow rapidly, the need for an AI-powered observability platform is critical to managing the related complexity and scale. We believe Dynatrace's precise answers, advanced analytics, and deep intelligence uniquely position us to capitalize on the market opportunity ahead.”
— Rick McConnell, Q2 2026 Earnings Press Release
DT Earnings Trends
DT vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
DT EPS Trend
Earnings per share: estimate vs actual
DT Revenue Trend
Quarterly revenue: estimate vs actual
DT Quarterly Results
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q4 26 BEAT FY | $0.39 | $0.41 | +5.34% | $531.7M | +2.03% |
| FY Full Year | — | $1.70 | — | $2.02B | — |
| Q3 26 BEAT | $0.41 | $0.44 | +7.19% | $515.5M | +1.83% |
| Q2 26 BEAT | $0.41 | $0.44 | +7.53% | $493.8M | +1.34% |
| Q1 26 BEAT | $0.38 | $0.42 | +11.55% | $477.3M | +2.05% |