Global Finance News
09 Feb 2026, 16:41
Dynatrace reported third-quarter fiscal 2026 results that exceeded the high end of guidance across all major metrics and prompted the company to raise its full-year outlook, while also announcing a new $1 billion share repurchase program.
For the quarter ended December 31, 2025, Dynatrace delivered total ARR of $1.97 billion, up 20% year over year, or 16% on a constant currency basis, supported by continued double-digit net new ARR growth for a third consecutive quarter. Revenue rose 18% to $515 million, with subscription revenue of $493 million growing at the same pace. Profitability improved meaningfully, with a GAAP operating margin of 14% and a non-GAAP operating margin of 30%. GAAP operating income reached $73 million, while non-GAAP operating income was $153 million, and diluted GAAP and non-GAAP EPS came in at $0.13 and $0.44, respectively.
Management highlighted strong enterprise demand for AI-driven observability as organizations scale AI workloads, alongside momentum in large deals, new customer additions, and rapid growth in log management. The company also emphasized ongoing product innovation, including the launch of Dynatrace Intelligence and deeper integrations across AWS, Microsoft Azure, and Google Cloud.
Alongside the results, Dynatrace announced authorization of a new $1 billion share repurchase program, following the near completion of its initial $500 million buyback. The company said the new program reflects confidence in its growth trajectory, cash flow generation, and long-term shareholder value creation.
For the quarter ended December 31, 2025, Dynatrace delivered total ARR of $1.97 billion, up 20% year over year, or 16% on a constant currency basis, supported by continued double-digit net new ARR growth for a third consecutive quarter. Revenue rose 18% to $515 million, with subscription revenue of $493 million growing at the same pace. Profitability improved meaningfully, with a GAAP operating margin of 14% and a non-GAAP operating margin of 30%. GAAP operating income reached $73 million, while non-GAAP operating income was $153 million, and diluted GAAP and non-GAAP EPS came in at $0.13 and $0.44, respectively.
Management highlighted strong enterprise demand for AI-driven observability as organizations scale AI workloads, alongside momentum in large deals, new customer additions, and rapid growth in log management. The company also emphasized ongoing product innovation, including the launch of Dynatrace Intelligence and deeper integrations across AWS, Microsoft Azure, and Google Cloud.
Alongside the results, Dynatrace announced authorization of a new $1 billion share repurchase program, following the near completion of its initial $500 million buyback. The company said the new program reflects confidence in its growth trajectory, cash flow generation, and long-term shareholder value creation.
