Dynatrace (DT) Q4 2026 earnings summary

Executive summary

• Achieved $2.05 billion in ARR as of Q4 FY26, marking four consecutive quarters of 16% constant currency ARR growth and surpassing the $2 billion milestone.

• Delivered double-digit net new ARR growth for the first time in three years, with strong momentum in large enterprise deals and new logo acquisitions.

• Major platform innovations launched, including Dynatrace Intelligence and domain-specific AI agents, with expanded integrations across AWS, Azure, GCP, Anthropic, and GitHub Advanced Security.

• Acquired DevCycle and Bindplane to enhance feature management and telemetry pipeline capabilities.

• Recognized as a leader in observability and AIOps by Gartner, Forrester, ISG, and as a Customers' Choice in the 2025 Gartner Peer Insights Voice of the Customer.

Financial highlights

• Q4 FY26 total revenue was $532 million, subscription revenue $506 million, both up 16% year-over-year (19% as reported).

• Full-year FY26 total revenue reached $2.02 billion, subscription revenue $1.93 billion, both up 17% (19% as reported).

• Q4 FY26 non-GAAP operating margin was 27%; full-year non-GAAP operating margin was 29%.

• Q4 FY26 non-GAAP net income was $124 million ($0.41 per diluted share); full-year non-GAAP net income was $518 million ($1.70 per diluted share).

• Free cash flow for FY26 was $529 million (26% of revenue), with pre-tax free cash flow at 32%.

Outlook and guidance

• FY27 ARR guidance: $2.38–$2.4 billion, representing 15.5%–16.5% constant currency growth.

• FY27 total revenue guidance: $2.32–$2.34 billion; subscription revenue: $2.22–$2.24 billion, both up 14%–15%.

• FY27 non-GAAP operating margin expected at 29.5%; non-GAAP net income $584–$594 million ($1.93–$1.95 per diluted share).

• Free cash flow margin expected at 26.5%, with pre-tax free cash flow margin at 32%.

• Net new ARR expected to grow 16%–23% year-over-year, with growth weighted toward the first half.