"Our largest GSI partners' ARR contribution in the first quarter has more than tripled year-over-year," said CEO Rick McConnell, reflecting growth driven by strategic partnerships.
— Rick McConnell
03Detailed Report
DT
Dynatrace Inc
Period
Q1 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 17, 2026
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Executive Summary
Dynatrace Inc. reported a robust financial performance for Q1 2026, with total revenue reaching $477.3 million, reflecting a year-over-year increase of 19% and a quarter-over-quarter growth of 7.23%. Subscription revenue, which constitutes the majority of the company's income, also grew by 19%, fueled by a strong annual recurring revenue (ARR) of $1.82 billion, representing a 16% growth year-over-year. The management's focus on end-to-end observability solutions continues to resonate well with customers, as reflected in their strong commitment to the platform and the increasing adoption of its AI-driven capabilities. The company aims to leverage its momentum in consumption growth as it navigates a dynamic technological landscape.
Key Performance Indicators
Revenue
Increasing
477.35M
QoQ: 7.23% | YoY: 19.57%
Gross Profit
Increasing
392.14M
82.15% margin
QoQ: 8.91% | YoY: 20.86%
Operating Income
Increasing
62.34M
QoQ: 45.26% | YoY: 48.32%
Net Income
Increasing
114.83M
QoQ: 192.15% | YoY: 197.32%
EPS
Increasing
0.16
QoQ: 23.08% | YoY: 23.08%
Revenue Trend
Margin Analysis
Financial Highlights
Dynatrace's Q1 2026 results showcased significant performance indicators:
- Total Revenue: $477.3 million (YoY: +19%, QoQ: +7.23%)
- Subscription Revenue: $458 million (YoY: +19%)
- Annual Recurring Revenue (ARR): $1.82 billion (YoY: +16%)
- Net Income: $114.8 million (YoY: +197.32%)
- Earnings Per Share (EPS): $0.16 (YoY: +23.08%)
- Free Cash Flow: $262 million, representing 26% of total revenue (TTM).
These impressive results were attributed to strategic investments in customer acquisition and retention, leading to an increase in the number of logos added to the platform, as well as significant expansion in existing customer utilization.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
477.35M
19.57%
7.23%
Gross Profit
392.14M
20.86%
8.91%
Operating Income
62.34M
48.32%
45.26%
Net Income
114.83M
197.32%
192.15%
EPS
0.16
23.08%
23.08%
Key Financial Ratios
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