Dynatrace reported a solid Q2 FY2026, delivering 16% year-over-year ARR growth to $1.90 billion and total revenue of $494 million, led by subscription revenue of $473 million (+17%). Gross margin stood at 81.8% with non-GAAP operating margin of 31% for the quarter, and trailing-12-month free cash flow represented 32% of revenue. Management reinforced a strategic shift toward end-to-end observability and autonomous operations powered by the third-generation platform (Grail data lake, Smartscape topology, Davis AI, Copilot remediation). The company raised its full-year guidance, highlighting durable demand for platform adoption, large-scale tool consolidation, and the accelerating consumption backdrop, particularly in logs. Management also emphasized DPS as the de facto contracting model, with 50% of customers and 70% of ARR on DPS by Q2, signaling higher cross-sell and consumption velocity. Key growth drivers include logs (fastest-growing category near $100M annualized consumption), a maturing partner ecosystem (GSIs, hyperscalers), and strategic collaborations (ServiceNow, Atlassian, GitHub). While the near-term outlook remains constructive, the firm acknowledged timing variability in large-scale deals and a macro environment that remains dynamic in EMEA, guiding a prudent second half. Investors should monitor DPS adoption trajectory, platform consumption as a leading indicator for expansions, and potential headwinds from revenue recognition shifts impacting quarterly ODC revenue cadence.