Rick McConnell, CEO: "We continue to see strength in the observability market as virtually all organizations aspire to have their software work perfectly."
— Rick McConnell
03Detailed Report
DT
Dynatrace Inc
Period
Q4 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 17, 2026
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Executive Summary
Dynatrace Inc (NYSE: DT) reported strong financial results for Q4 2025, marked by a revenue increase of 19% year-over-year (YoY) to $445 million and subscription revenue growth of 20%. The company surpassed a significant milestone with Annual Recurring Revenue (ARR) reaching $1.73 billion, representing a growth of 17% YoY. Strong performance was driven by an increase in customer adoption of its Dynatrace Platform Subscription (DPS) model, which now accounts for over 60% of ARR. Management highlighted the growing demand for AI-powered observability tools as businesses look to enhance user experiences and optimize operational efficiency amid uncertain economic conditions. The introduction of innovative products and strong market positioning, particularly in observability and AI operations, positions Dynatrace favorably for future growth.
Key Performance Indicators
Revenue
Increasing
445.17M
QoQ: 2.06% | YoY: 16.89%
Gross Profit
Increasing
360.07M
80.88% margin
QoQ: 1.83% | YoY: 16.54%
Operating Income
Increasing
42.91M
QoQ: -9.59% | YoY: 85.59%
Net Income
Increasing
39.30M
QoQ: -89.14% | YoY: 3.58%
EPS
Stable
0.13
QoQ: -89.26% | YoY: 0.00%
Revenue Trend
Margin Analysis
Financial Highlights
### Financial Performance:
- Total Revenue: $445 million (+19% YoY, +2% QoQ)
- Subscription Revenue: $424 million (+20% YoY)
- Net Income: $39.3 million (+3.6% YoY, -89.1% QoQ)
- Earnings Per Share (EPS): $0.13 (diluted)