Dynatrace (DT) FY2026 ARR Surpasses $2B on Strong Q4 Revenue Growth

Dynatrace Inc. (NYSE:DT) is one of the best low priced technology stocks to buy according to hedge funds. On May 13, Dynatrace closed its FY2026 by surpassing $2 billion in ARR, marking an 18% increase (16% on a constant currency basis). For FQ4, the company reported total revenue of $532 million and subscription revenue of $506 million, both growing 19% year-over-year. Q4 GAAP income from operations was $37 million ($0.06 per diluted share), while non-GAAP income from operations reached $143 million ($0.41 per diluted share).

For the full FY2026, total revenue increased 19% to $2.02 billion, and subscription revenue rose 19% to $1.93 billion. Full-year GAAP operating income stood at $245 million, yielding a 12% operating margin, while non-GAAP operating income hit $592 million with a 29% operating margin. Dynatrace generated $562 million in GAAP operating cash flow and $529 million in free cash flow, while accelerating its capital return by repurchasing $224 million of its common stock during Q4.

Operational milestones included securing 22 deals exceeding $1 million in annual contract value, expanding log management consumption by over 100%, and completing the acquisitions of DevCycle and Bindplane. The company also surpassed $1 billion in lifetime AWS Marketplace sales and expanded its Model Context Protocol server capabilities with Anthropic’s Claude. Looking to FY2027, Dynatrace Inc. (NYSE:DT) targets full-year ARR between $2.38 billion and $2.40 billion, total revenue between $2.32 billion and $2.34 billion, and free cash flow between $613 million and $620 million.

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Dynatrace Inc. (NYSE:DT) is a technology company that advances observability for digital businesses and primarily operates an AI-powered observability platform called Dynatrace.

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