Strong Start to Fiscal 2026
Dynatrace reported a strong start to fiscal 2026 with subscription revenue growing 19% and ARR growing 16%. Pretax free cash flow was 33% of revenue on a trailing 12-month basis.
Expansion of Large Deals
The company closed 12 seven-figure ACV deals in the quarter. The strategic enterprise pipeline grew nearly 50% year-over-year, with the pipeline contribution of deals greater than $1 million more than doubling.
Growth in Log Management
Dynatrace's logs consumption increased 36% sequentially and over 100% year-over-year. The company is confident in achieving $100 million in annualized logs consumption by the end of this fiscal year.
Recognition as Industry Leader
Dynatrace was named a leader in the 2025 Gartner Magic Quadrant for observability platforms and ranked #1 in four out of six use cases in the 2025 Gartner critical capabilities for observability platforms report.
Increase in DPS Adoption
Over 45% of Dynatrace's customer base and over 65% of ARR is now on the Dynatrace Platform Subscription licensing model, which leads to higher consumption and capability adoption.