Dynatrace Inc
Q3 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −4.02%.
Did DT Beat Earnings? Q3 2026 Results
Dynatrace posted a strong fiscal third quarter, with results beating Wall Street expectations across the board and prompting a raise to its full-year outlook. The observability software company reported non-GAAP EPS of $0.44, ahead of the $0.41 consensus estimate by 7.19%, while revenue climbed 18.2% year over year to $515.47 million, topping the $506.23 million consensus by 1.83%. The quarter's standout driver was accelerating go-to-market momentum, including 12 deals exceeding $1.00 million in ARR and record new logo ARR, helping push total ARR to $1.97 billion, up 20% as reported. Log management crossing $100.00 million in annualized consumption dollars underscored broadening product adoption. Looking ahead, Dynatrace raised its full-year FY2026 revenue guidance to $2.01 billion and lifted non-GAAP EPS guidance to $1.67-$1.69, while also authorizing a new $1.00 billion share repurchase program, a signal analysts noted reflects management's confidence in sustained execution and enterprise demand for its AI-powered platform.
- Total ARR grew 20% YoY (16% constant currency) to $1,972 million
- Double-digit net new ARR growth for three consecutive quarters
- Log management surpassed $100 million in annualized consumption dollars, fastest-growing major product category
- Closed 12 deals greater than $1 million in ARR, 11 involving partners, 5 new logos contributing to record new logo ARR
- Subscription revenue grew 18% YoY to $493 million
- Non-GAAP operating margin of 30%
“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.”
Dynatrace CEO, on the earnings call
Forward Guidance & Outlook
Dynatrace raised its full-year FY2026 guidance across all metrics. ARR is now expected at $2,053–$2,061 million (up from $2,010–$2,025 million), representing 18.5%–19% as-reported growth and 15.5%–16% constant currency growth. Full-year total revenue guidance was raised to $2,005–$2,010 million (18%–18.5% growth), subscription revenue to $1,917–$1,922 million, non-GAAP income from operations to $582–$587 million (29% margin), non-GAAP EPS to $1.67–$1.69, and free cash flow to $520–$525 million (26% margin). For Q4 FY2026, the company guided total revenue of $518–$523 million (16%–17% growth), non-GAAP operating income of $133–$138 million (26% margin), and non-GAAP EPS of $0.38–$0.39. Foreign exchange is expected to be a tailwind of approximately $49 million on ARR and $37 million on revenue for the full year.
DT YoY Financials
DT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.