The strong Q4 beat and above-consensus FY2027 guidance, combined with accelerating buybacks and record large-deal activity, signal sustained momentum. Watch for potential upward estimate revisions from analysts and monitor Q1 FY2027 results for continued ARR growth acceleration toward the 16-17% guided range.
Price Chart
Executive Summary
Dynatrace reported Q4 FY2026 results that exceeded the high end of prior guidance across all metrics, with total revenue of $531.7M (+19% YoY) and non-GAAP EPS of $0.41, surpassing the $0.39 consensus. The company also issued a strong FY2027 outlook, guiding for ARR of $2,382-2,402M (16-17% growth) and non-GAAP EPS of $1.93-1.95, well above the $1.70 reported for FY2026, while accelerating share repurchases to $224M in Q4.
Key Financial Metrics
Key Facts
- Q4 FY2026 total revenue of $531.7M, +19% YoY, above $521.2M consensus
- Q4 non-GAAP EPS of $0.41, +24% YoY, above $0.39 consensus (5.1% beat)
- Full year FY2026 total revenue of $2,018M, +19% YoY
- ARR surpassed $2B for the first time, reaching $2,054M (+18% reported, +16% constant currency)
- FY2027 guidance: total revenue $2,317-2,335M (15-16% growth), non-GAAP EPS $1.93-1.95
- Record 22 deals >$1M ACV in Q4, 9 of which were new logos
- Q4 share repurchases of $224M, up 40% sequentially; $1B program underway
- Log management consumption grew >100% YoY for the fourth consecutive quarter
- GAAP operating margin declined to 7% in Q4 from 10% a year ago, due to $18.5M impairment and $28.1M in transaction/restructuring costs
- Free cash flow of $212.4M in Q4, 40% margin vs 33% a year ago
Financial Impact
Q4 revenue beat consensus by ~$10.5M (2.0%); non-GAAP EPS beat by $0.02 (5.1%); FY2027 guidance midpoint implies ~15% revenue growth and ~14% EPS growth
Risk Factors
- GAAP operating margin compressed to 7% in Q4 due to impairment and restructuring charges
- FY2027 constant currency revenue growth guidance of 14-15% represents deceleration from FY2026's 17%
- Heavy reliance on large deal concentration (22 deals >$1M ACV) may create lumpiness
- Integration risk from two recent acquisitions (DevCycle, Bindplane)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001773383-26-000011 |
| Document: dt-20260513.htm | 0001773383-26-000011 |
| Document: 0001773383-26-000011-index-headers.html | 0001773383-26-000011 |
| Document: 0001773383-26-000011-index.html | 0001773383-26-000011 |
| Document: 0001773383-26-000011.txt | 0001773383-26-000011 |
| 8-K Data (Synthetic) | 0001773383-26-000011 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 5, 2026 8w ago | 8-K | $50.57 $50.87 | ▲ +0.60% | ▲ +1.20% | $59.32 (+17.31%) |
Jul 29, 2026 9w ago | DEFA14A / 8-K | $43.88 $51.60 | ▲ +17.59% | ▲ +12.57% | $59.32 (+35.19%) |
Jul 10, 2026 12w ago | DEFA14A | $43.68 $48.93 | ▲ +12.01% | ▲ +9.59% | $59.32 (+35.81%) |
Jul 1, 2026 13w ago | 8-K | $45.38 $43.88 | ▼ −3.31% | ▼ −1.12% | $59.32 (+30.72%) |
May 13, 2026 20w ago | 8-K | $34.62 $40.37 | ▲ +16.62% | ▲ +17.23% | $59.32 (+71.36%) |
US Market Status
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