Dynatrace (DT) Q2 FY2027 earnings: revenue $580 million, up 17.4% on the year

Dynatrace, Inc. (DT) reported revenue of $580 million for Q2 FY2027, the quarter ended 30 September 2026, up 17.4% on the same quarter a year earlier. Net income was $68 million, up 18.4% on the year, and diluted earnings per share $0.23. The figures are the company's own, from the 10-Q it filed with the SEC on 3 November 2026.

Revenue

$580 million

+17.4% on the year · +4.6% on the quarter

Q3 FY2025Q2 FY2027

Operating margin

16.5%

14.8% a year earlier

Q3 FY2025Q2 FY2027

Net income

$68 million

+18.4% on the year · +84.9% on the quarter

Q3 FY2025Q2 FY2027

Diluted EPS

$0.23

+21.1% on the year · +91.7% on the quarter

Q3 FY2025Q2 FY2027

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 9 raised, 6 lowered, 10 new.

ARR reached $2.21 billion: Total ARR was $2,207 million, up 16% on reported and constant-currency bases, against $1,899 million a year earlier.
Revenue rose 17% to $580 million: Total revenue was $579.9 million against $493.8 million, up 17% reported and in constant currency. Subscription revenue was $553.1 million, up 17%.
Full-year guidance ranges revised: Full-year ARR and revenue ranges raised; operating income, margin, net income, EPS and adjusted free cash flow ranges lowered; third-quarter ranges added.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q2 FY2027	Q1 FY2027	Q2 FY2026	On the quarter	On the year
Revenue	580	555	494	+4.6%	+17.4%
Cost of revenue	113	103	89.8	+9.0%	+25.6%
Gross profit	467	451	404	+3.6%	+15.6%
Gross margin	80.6%	81.3%	81.8%
Research and development	132	136	115	-2.8%	+15.0%
Operating income	95.6	71.5	73.0	+33.8%	+31.1%
Operating margin	16.5%	12.9%	14.8%
Interest expense	0.7	0.2	0.2	+250.0%	+250.0%
Pre-tax income	107	80.8	87.1	+32.4%	+22.8%
Income tax	39.2	44.1	29.9	-11.2%	+31.3%
Effective tax rate	36.7%	54.6%	34.3%
Net income	67.8	36.7	57.2	+84.9%	+18.4%
Net margin	11.7%	6.6%	11.6%
Diluted EPS	$0.23	$0.12	$0.19	+91.7%	+21.1%

$ million except per share.

Free 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

$ million	Q2 FY2027	Q1 FY2027	Q2 FY2026	On the quarter	On the year
Operating cash flow	41.1	306	32.0	-86.6%	+28.3%
Capital expenditure	5.1	3.2	4.2	+61.2%	+21.3%
Free cash flow	36.0	303	27.8	-88.1%	+29.4%
Free cash flow margin	6.2%	54.7%	5.6%
Cash from investing	-12.3	-72.9	1.9
Cash from financing	994	-270	-55.2
Depreciation and amortisation	8.0	7.6	5.7	+4.8%	+40.1%
Share-based compensation	78.2	73.6	76.8	+6.2%	+1.8%
Buybacks	247	275	50.0	-10.2%	+394.7%
Diluted shares, weighted	302m	294m	304m	+2.7%	-0.9%
Shares outstanding at period end	286m	290m	302m	-1.4%	-5.1%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q2 FY2027	Q1 FY2027	Q2 FY2026	On the quarter	On the year
Shareholders' equity	2,274	2,451	2,779	-7.2%	-18.2%
Debt	1,411	0.0	0.0
Operating lease liabilities	131	136	69.8	-4.0%	+87.3%
Other liabilities	1,463	1,523	1,233	-3.9%	+18.6%
Total liabilities and equity	5,279	4,109	4,082	+28.5%	+29.3%
Fixed assets	71.6	71.6	66.1	-0.1%	+8.3%
Goodwill	1,412	1,413	1,344	-0.1%	+5.0%
Intangible assets	62.0	65.3	24.1	-5.0%	+157.7%
Investments	106	98.2	144	+7.6%	-26.7%
Cash and equivalents	2,076	1,058	1,225	+96.2%	+69.4%
Receivables	447	380	315	+17.6%	+41.9%
Other assets	1,105	1,023	963	+8.0%	+14.7%
Total assets	5,279	4,109	4,082	+28.5%	+29.3%

Questions

What was Dynatrace's revenue in Q2 FY2027?

Dynatrace (DT) reported revenue of $580 million for Q2 FY2027, the quarter ended 30 September 2026, up 17.4% on the same quarter a year earlier.

How much did Dynatrace earn in Q2 FY2027?

Net income for Q2 FY2027 was $68 million, up 18.4% on the year, and diluted earnings per share $0.23.

When did Dynatrace report Q2 FY2027 results?

Dynatrace filed its 10-Q for the quarter ended 30 September 2026 with the SEC on 3 November 2026.

Quarterly results, the last 20 quarters

	Q3 FY2022	Q4 FY2022 *	Q1 FY2023 †	Q2 FY2023 †	Q3 FY2023 †	Q4 FY2023 * †	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026	Q4 FY2026 *	Q1 FY2027	Q2 FY2027
Revenue	241	253	267	279	297	314	333	352	365	381	399	418	436	445	477	494	515	532	555	580
Cost of revenue	44.5	47.9	51.8	55.7	55.8	59.6	62.3	64.4	67.9	71.9	74.8	77.8	82.6	85.1	85.2	89.8	95.8	101	103	113
Gross profit	196	205	215	224	242	255	271	287	297	309	324	340	354	360	392	404	420	430	451	467
Gross margin	82%	81%	81%	80%	81%	81%	81%	82%	81%	81%	81%	81%	81%	81%	82%	82%	81%	81%	81%	81%
R&D	40.9	42.8	49.4	52.9	54.5	61.5	66.3	74.1	80.1	84.3	87.6	95.4	98.3	103	108	115	121	131	136	132
Operating income	21.2	17.6	19.1	20.4	33.9	19.4	34.3	35.3	35.7	23.1	42.0	47.0	47.5	42.9	62.3	73.0	72.7	37.3	71.5	95.6
Operating margin	9%	7%	7%	7%	11%	6%	10%	10%	10%	6%	11%	11%	11%	10%	13%	15%	14%	7%	13%	16%
Interest expense	n/a	n/a	n/a	n/a	n/a	n/a	0.4	0.4	0.2	0.4	0.1	0.4	0.3	0.2	0.2	0.2	0.2	0.2	0.2	0.7
Pre-tax income	17.4	17.3	14.7	18.7	30.7	25.9	41.7	40.7	42.4	30.1	52.8	57.8	57.1	55.7	81.4	87.1	84.5	46.8	80.8	107
Tax rate	16%	95%	86%	44%	51%	-210%	8%	12%	-1%	-26%	27%	24%	-533%	29%	41%	34%	53%	63%	55%	37%
Net income	14.6	0.9	2.1	10.5	15.0	80.3	38.2	35.8	42.7	37.9	38.6	44.0	362	39.3	48.0	57.2	40.1	17.4	36.7	67.8
Net margin	6%	0%	1%	4%	5%	26%	11%	10%	12%	10%	10%	11%	83%	9%	10%	12%	8%	3%	7%	12%
Diluted EPS	$0.05	$0.00	$0.01	$0.04	$0.05	$0.27	$0.13	$0.12	$0.14	$0.13	$0.13	$0.15	$1.19	$0.13	$0.16	$0.19	$0.13	$0.06	$0.12	$0.23
Operating cash flow	60.8	88.3	143	29.4	62.0	120	134	36.9	75.7	132	231	23.6	42.2	163	270	32.0	33.8	226	306	41.1
Capital expenditure	4.2	5.9	6.9	4.3	4.4	5.9	10.3	2.8	3.6	9.8	3.4	3.5	4.7	14.6	7.5	4.2	6.5	14.0	3.2	5.1
Free cash flow	56.7	82.4	136	25.1	57.6	115	124	34.1	72.0	122	227	20.1	37.6	148	262	27.8	27.2	212	303	36.0
Buybacks	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	45.0	50.0	n/a	n/a	275	247
Shares outstanding	286m	286m	287m	288m	289m	290m	293m	294m	296m	297m	298m	299m	299m	300m	302m	302m	300m	295m	290m	286m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS 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 the share count are as they are. Free 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. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 30 September 2026, filed 3 November 2026: the filing.