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, with strong momentum in large enterprise deals and new logo acquisitions.

• Maintained a 95% subscription revenue mix and a 110% net retention rate, reflecting strong customer loyalty and expansion.

• Launched major platform innovations, including Dynatrace Intelligence and domain-specific AI agents, and completed acquisitions of DevCycle and Bindplane.

• Recognized as a leader in observability and AIOps by Gartner, Forrester, ISG, and 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 on a constant currency basis.

• Full-year FY26 total revenue reached $2.02 billion, subscription revenue $1.93 billion, both up 17% year-over-year.

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

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

• Q4 FY26 GAAP net income per share was $0.06; non-GAAP was $0.41 (diluted).

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%.

• Non-GAAP operating margin expected at ~29.5%, with free cash flow margin at 26.5%.

• Non-GAAP net income forecasted at $584–$594 million, EPS $1.93–$1.95 per diluted share.

• Net new ARR expected to be $320–$340 million, up 16%–23% year-over-year.