Dynatrace Inc
Q4 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.69%.
Did DT Beat Earnings? Q4 2026 Results
Dynatrace closed out fiscal 2026 on a strong note, posting Q4 revenue of $531.72 million, up 19.4% year-over-year and ahead of the $521.15 million consensus estimate by 2.03%, while non-GAAP EPS of $0.41 beat the $0.39 analyst forecast by 5.34%. The headline driver was continued momentum in the company's subscription business, with subscription revenue of $505.75 million growing 19% year-over-year and annual recurring revenue crossing $2.05 billion, up 18% from a year ago, marking the fourth consecutive quarter of 16% constant currency ARR growth. Log management stood out operationally, with Q4 consumption expanding more than 100% year-over-year, and Dynatrace closed a record 22 deals exceeding $1.00 million in annual contract value during the quarter. Analysts have noted that the company's $529.48 million in full-year free cash flow significantly exceeded its $162.67 million GAAP net income, suggesting underlying earnings power that statutory figures understate. Looking ahead, Dynatrace guided full-year FY27 revenue of $2.32 billion to $2.33 billion, reflecting 15% to 16% growth, with non-GAAP EPS of $1.93 to $1.95 and free cash flow of $613.00 million to $620.00 million.
- Fourth consecutive quarter of 16% constant currency ARR growth
- Record 22 deals greater than $1 million in annual contract value in Q4, nine of which were new logos
- Log management consumption grew more than 100% year-over-year in Q4
- Increase in average deal size driven by go-to-market strategy traction
- Surpassed $1 billion in cumulative AWS Marketplace sales
“Dynatrace delivered a strong finish to FY26, surpassing $2 billion in ARR and achieving our fourth consecutive quarter of 16% constant currency ARR growth. 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.”
Dynatrace CEO, on the earnings call
Forward Guidance & Outlook
For Q1 FY27, Dynatrace guides total revenue of $547-$551 million (15% as reported, 13%-14% constant currency), subscription revenue of $523-$527 million (14%-15% as reported, 13%-14% constant currency), non-GAAP income from operations of $150-$154 million (27.5%-28% margin), non-GAAP net income of $130-$134 million, and non-GAAP EPS of $0.44-$0.45. For full-year FY27, the company guides ARR of $2,382-$2,402 million (16%-17% as reported, 15.5%-16.5% constant currency), total revenue of $2,317-$2,335 million (15%-16% as reported, 14%-15% constant currency), subscription revenue of $2,217-$2,235 million (15%-16% as reported, 14%-15% constant currency), non-GAAP income from operations of $682-$690 million (29.5% margin), non-GAAP net income of $584-$594 million, non-GAAP EPS of $1.93-$1.95, and free cash flow of $613-$620 million (26.5% margin). FX tailwind is expected to be approximately $10 million on ARR and $15 million on revenue for FY27. Guidance excludes impact of share repurchases during FY27.
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Figures from SEC filings and company reports. Not investment advice.