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Dynatrace (DT) FY2026 results: revenue $2.0 billion, up 18.8% on the year

Dynatrace, Inc. (DT) reported revenue of $2.0 billion for fiscal 2026, the year ended 31 March 2026, up 18.8% on the year before. Net income was $163 million, down 66.4%, and diluted earnings per share $0.54. The figures are the company's own, from the 10-K it filed with the SEC on 20 May 2026.

Revenue
$2.0 billion
+18.8% on the year
FY2019FY2026
Operating margin
12.2%
10.6% a year earlier
FY2019FY2026
Net income
$163 million
-66.4% on the year
FY2019FY2026
Diluted EPS
$0.54
-66.0% on the year
FY2019FY2026

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 18 new.

  • ARR passed $2 billion: Total ARR reached $2,054 million, up 18% as reported and 16% in constant currency. This is the fourth consecutive quarter of 16% constant currency ARR growth.
  • Log management fastest growing category: Log management remained the fastest-growing major product category. Fourth-quarter consumption grew more than 100% year over year.
  • Record 22 large deals in Q4: The company closed 22 deals above $1 million in annual contract value in the quarter, a record. Nine of them were new logos.
  • Full-year operating margins stated: Fiscal 2026 GAAP operating margin was 12%, compared with 11% in fiscal 2025. Non-GAAP operating margin was 29% in both years.
  • Q4 GAAP margin hit by impairment: Fourth-quarter GAAP operating margin was 7%, against 10% a year earlier. The quarter included an $18.5 million impairment of long-lived assets and $28.1 million of transaction, restructuring and other charges. Non-GAAP operating margin was 27%.
Read the Q4 FY2026 earnings call summary

From this 10-K

Dynatrace sells software that watches how a company's applications, cloud infrastructure and AI systems are running, works out why something has gone wrong, and can act on it automatically. The field is called observability, and the company combines it with runtime application security and what it calls agentic AI operations. The platform works across the major cloud providers, Amazon Web Services, Microsoft Azure and Google Cloud Platform, as well as on-premises and mainframe systems. Its principal executive offices are in Boston, Massachusetts.

Dynatrace, Inc., the 10-K for 2026

Dynatrace sells software that watches how a company's applications, cloud infrastructure and AI systems are running, works out why something has gone wrong, and can act on it automatically. The field is called observability, and the company combines it with runtime application security and what it calls agentic AI operations. The platform works across the major cloud providers, Amazon Web Services, Microsoft Azure and Google Cloud Platform, as well as on-premises and mainframe systems. Its principal executive offices are in Boston, Massachusetts.

How the platform is built

All observability, security and business data, including logs, traces, metrics, real user data and events, is stored in one data lakehouse called Grail, without upfront indexing or schema design. A technology called Smartscape maps the dependencies between applications, infrastructure, networks, services and users into a near real-time dependency graph, so the platform can show why something is happening and what it affects. Dynatrace Intelligence, an agentic operations system that combines deterministic AI with agentic AI, sits at the core. OneAgent is installed once on a host and then collects data and metrics across the chain of applications running there. PurePath captures timing and code-level context for distributed traces end to end. Bindplane and OpenPipeline bring in and process telemetry data from other sources, such as OpenTelemetry.

What customers use it for

Its solutions cover observability for generative AI applications, large language models and AI agents; log management and analytics; cloud, infrastructure and application observability; and digital experience monitoring with real-user and synthetic monitoring and session replays. Application Security detects runtime vulnerabilities in applications, libraries and code and can block attacks that exploit them. Other solutions automate software delivery workflows, serve developers, and link the performance of digital services to business indicators.

How it is sold and deployed

Most customers run Dynatrace as software-as-a-service, and it can also be deployed on infrastructure the customer provisions. Under its Dynatrace Platform Subscription model, a customer commits to a minimum annual spend and draws it down by actual usage against a rate card, using any capability in any quantity. The global direct sales team targets the largest 15,000 companies globally, alongside partners including global system integrators such as Accenture, Atos, Deloitte, DXC and Kyndryl, the major cloud providers, resellers and technology partners such as Atlassian, Red Hat, ServiceNow and VMware. Resellers also cover countries where Dynatrace has no direct presence.

Customers and people

As of March 31, 2026 it had approximately 4,100 customers in over 110 countries, in industries including banking and financial services, government, insurance, retail and wholesale, transportation and software. No end-customer represented more than 10% of revenue in the last three fiscal years. Development uses an agile process with 100% test automation. At the same date it had approximately 5,600 employees in approximately 40 countries, approximately 30% of them in the United States and approximately 28% in Austria.

From Dynatrace's annual report on Form 10-K for the year ended 31 March 2026. The filing

Written from the 10-K filed 20 May 2026: read the full 10-K.

The four quarters: Q1 FY2026 · Q2 FY2026 · Q3 FY2026 · Q4 FY2026

Income statement (profit and loss)

$ millionFY2026FY2025FY2024On the yearLast 8 years
Revenue2,0181,6991,431+18.8%
Cost of revenue372320266+16.2%
Gross profit1,6461,3781,164+19.4%
Gross margin81.6%81.2%81.4%
Research and development474385305+23.3%
Operating income245179128+36.8%
Operating margin12.2%10.6%9.0%
Interest expense0.81.01.4-20.0%
Pre-tax income300223155+34.2%
Income tax137-2600.3
Effective tax rate45.7%-116.5%0.2%
Net income163484155-66.4%
Net margin8.1%28.5%10.8%
Diluted EPS$0.54$1.59$0.52-66.0%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2026FY2025FY2024On the yearLast 8 years
Operating cash flow562459378+22.3%
Capital expenditure32.226.126.5+23.2%
Free cash flow530433352+22.2%
Free cash flow margin26.2%25.5%24.6%
Cash from investing-15.7-69.3-193
Cash from financing-474-15250.7
Depreciation and amortisation24.048.154.9-50.0%
Share-based compensation300272209+10.3%
Buybacks4791730.0+177.3%
Diluted shares, weighted304m304m299m+0.0%
Shares outstanding at period end295m300m297m-1.7%

Balance sheet

$ millionFY2026FY2025FY2024On the yearLast 8 years
Shareholders' equity2,6112,6212,015-0.4%
Debt0.00.00.0
Operating lease liabilities14261.454.0+130.9%
Other liabilities1,6631,4571,340+14.1%
Total liabilities and equity4,4164,1403,410+6.7%
Fixed assets73.061.553.3+18.6%
Goodwill1,3501,3361,335+1.0%
Intangible assets22.925.551.0-10.5%
Investments127148104-14.2%
Cash and equivalents1,0971,017779+7.9%
Receivables710624603+13.7%
Other assets1,035927484+11.7%
Total assets4,4164,1403,410+6.7%

10-K for the year ended 31 March 2026, filed 20 May 2026: the filing.