Dynatrace (NYSE: DT) has released its financial results for the third quarter of fiscal 2026, ended December 31, 2025. The company has exceeded the high end of its guidance across all top-line growth and profitability metrics. Here are the key financial highlights compared to the third quarter of fiscal 2025:
- Total ARR (Annual Recurring Revenue) reached $1,972 million, marking a 20% increase or 16% on a constant currency basis.
- Total revenue stood at $515 million, an 18% increase or 16% on a constant currency basis.
- Subscription revenue saw a significant increase to $493 million, up 18% or 16% on a constant currency basis.
- GAAP income from operations reached $73 million, and non-GAAP income from operations stood at $153 million.
- GAAP net income per share was $0.13, while non-GAAP net income per share stood at $0.44 on a dilutive basis.
Regarding the company's share repurchase program, Dynatrace has authorized a new $1 billion share repurchase program, reflecting confidence in the underlying strength of the business and a commitment to driving shareholder value.
In addition to the financial performance, Dynatrace achieved notable business highlights during the quarter:
- Closed 12 deals greater than $1 million in ARR, 11 of which were in collaboration with partners, and five of which were new logos, contributing to record new logo ARR.
- Surpassed the milestone of $100 million in annualized consumption dollars for log management, which continues to be the company's fastest-growing major product category.
The company also announced several product innovations and strategic ecosystem advancements during the quarter. These include the introduction of Dynatrace Intelligence, a new agentic AI-powered operations system, and expanded cloud-native integrations across Amazon Web Services, Microsoft Azure, and Google Cloud Platform.
Looking ahead, Dynatrace has raised its guidance for the full year fiscal 2026. The updated guidance includes expectations for total ARR, total revenue, subscription revenue, non-GAAP income from operations, non-GAAP net income, non-GAAP net income per diluted share, and free cash flow.
The company will host a conference call and live webcast to discuss its results and business outlook at 8:00 a.m. Eastern Time on February 9, 2026. The call will be available live via webcast on the company’s website, ir.dynatrace.com.
Dynatrace (NYSE: DT) is a leading AI-powered observability platform that is advancing observability for today’s digital businesses, helping to transform the complexity of modern digital ecosystems into powerful business assets. The market has reacted to these announcements by moving the company's shares 1.27% to a price of $39.88. For more information, read the company's full 8-K submission here.
