Quarterly ResultMay 13, 2026, 06:37 AM
Dynatrace Q4 ARR $2.05B, +16%; FY26 Non-GAAP Op. Margin 29%
AI Summary
Dynatrace reported strong financial results for Q4 and full year fiscal 2026, with Annual Recurring Revenue (ARR) surpassing $2 billion and achieving 16% constant currency ARR growth for the fourth consecutive quarter. The company also significantly increased its share repurchase activity, buying back $224 million of stock in Q4. Dynatrace highlighted business momentum through increased deal sizes, rapid growth in log management, strategic acquisitions, and strong hyperscaler engagement, while also providing positive financial outlook for fiscal year 2027.
Key Highlights
- Q4 Total ARR reached $2.05 billion, an 18% increase (+16% constant currency) year-over-year.
- Full Year FY26 Total Revenue was $2.02 billion, up 19% (+17% constant currency) YoY.
- Full Year FY26 Non-GAAP Operating Margin was 29%, with GAAP Operating Margin at 12%.
- Full Year FY26 Free Cash Flow was $529 million, representing a 26% margin.
- Repurchased $224 million of stock in Q4, completing a $500 million program and starting a new $1 billion program.
- Closed a record 22 deals greater than $1 million in ACV in Q4, including 9 new logos.
- Acquired DevCycle and Bindplane, enhancing AI-powered observability and feature management.
- Provided FY27 guidance: ARR $2.38B-$2.40B (+15.5%-16.5% cc) and Total Revenue $2.32B-$2.34B (+14%-15% cc).