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Dynatrace Inc (DT)
NYSE:DT
Earnings Data
Report Date
May 20, 2026After Close (Confirmed)
Period Ending
2026 (Q4)Consensus EPS Forecast
0.39Last Year’s EPS
0.33Same Quarter Last Year
Strong Buy
Based on 26 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong operational and financial momentum: ARR and revenue growth of 16% YoY, robust net new ARR and new-logo metrics, logs consumption exceeding $100M with >100% YoY growth, profitability and cash-generation beats, and an expanded $1B buyback program. Management raised full-year guidance and highlighted product differentiation (Grail, SmartScape, Dynatrace Intelligence), strategic hyperscaler integrations, and customer outcomes. Risks discussed included quarter-seasonal free cash flow variability, a lag between consumption growth and ARR realization, ongoing reliance on expansion within the installed base, cautious customer adoption timelines for agentic AI, and competitive/LLM-related questions. On balance, the positives — sustained ARR stabilization, accelerating consumption, product differentiation, and upgraded guidance — materially outweigh the noted challenges.Company Guidance
ARR Growth and Stabilization
ARR ended Q3 at $1.97 billion, up 16% year-over-year, representing three consecutive quarters of stabilized ARR growth and positioning the company on track to surpass $2.0B ARR in FY2026.
Strong Net New ARR and New Logo Performance
Q3 net new ARR was $75 million (adjusted for FX), up 11% year-over-year and marking the third consecutive quarter of double-digit net new ARR growth. The company added 164 new logos with average ARR per new logo > $160k and average land size > $200k.
Revenue and Profitability Beat
Total revenue was $515 million and subscription revenue $493 million, both up 16% year-over-year and exceeding the high end of guidance. Non-GAAP operating margin was 30%, and non-GAAP net income was $135 million ($0.44 per diluted share), ahead of guidance.
Logs Consumption Surge
Annualized logs consumption surpassed $100 million and is growing at over 100% year-over-year; logs are identified as the fastest-growing product category and a significant new ARR driver embedded in many end-to-end deals.
Strong Cash Generation and Capital Returns
Trailing twelve-month free cash flow was $463 million (24% of revenue) and pre-tax free cash flow 30% of revenue. The board authorized a new $1 billion share repurchase program (double prior program); Q3 repurchases included 3.5M shares for $160M at ~ $45 average.
Raised FY Guidance
Management raised full-year guidance: ARR growth guidance increased by 125 basis points to 15.5%–16%, revenue and subscription growth guidance raised (midpoint +75 bps to ~16%), non-GAAP operating margin to ~29%, free cash flow margin to ~26%, and non-GAAP EPS guidance raised to $1.67–$1.69.
Customer Outcomes and Momentum
Multiple customer case studies highlighted material operational improvements (e.g., airline: 31% better reliability and 75% fewer incidents; Telus: average time to resolve issues reduced from 40 to 5 minutes; Nationwide: 74% reduction in priority-one incidents). Dozens of 7-figure wins and increased platform standardization reported.
Product & Ecosystem Differentiation
Announced Dynatrace Intelligence (agentic operations OS), emphasized Grail (massively parallel observability lakehouse) and SmartScape (real-time topology) as key differentiators. Strategic partnerships and hyperscaler integrations (Amazon Bedrock, Azure SRE agent, GCP Gemini) plus acquisition of DevCycle to extend developer/feature management capabilities.
DT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
DT Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 09, 2026 | $33.71 | $36.18 | +7.33% |
Nov 05, 2025 | $49.63 | $47.39 | -4.51% |
Aug 06, 2025 | $50.53 | $50.53 | 0.00% |
May 14, 2025 | $50.54 | $53.50 | +5.86% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Dynatrace Inc (DT) report earnings?
Dynatrace Inc (DT) is schdueled to report earning on May 20, 2026, After Close (Confirmed).
What is Dynatrace Inc (DT) earnings time?
Dynatrace Inc (DT) earnings time is at May 20, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is DT EPS forecast?
DT EPS forecast for the fiscal quarter 2026 (Q4) is 0.39.
