Dynatrace Delivers Double Beat, Raises The Bar For 2026

Dynatrace, Inc (NYSE:DT) reported fourth-quarter 2025 results on Wednesday.

The company reported quarterly revenue growth of 17% year-over-year to $445.17 million, beating the analyst consensus estimate of $434.78 million.

Adjusted EPS was $0.33, up from $0.30, beating the analyst consensus estimate of $0.30.

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The stock price gained after the report.

Annual Recurring Revenue (ARR) increased by 15% Y/Y or 17% in constant currency. Revenues from Subscription rose 18% Y/Y to $423.57 million.

The adjusted operating margin expanded 100 bps to 26%, with operating income up 24% Y/Y to $117.89 million.

As of March-end, Dynatrace held $1.11 billion in cash and equivalents.

During the fourth quarter, Dynatrace repurchased 0.79 million shares for approximately $43 million under its $500 million share repurchase program.

Q1 Outlook: Dynatrace expects revenue of $465.00 million-$470.00 million (analyst consensus $454.51 million). Dynatrace expects adjusted EPS of $0.37-$0.38 (consensus estimate $0.35).

2026 Outlook: Dynatrace expects revenue of $1.950 billion-$1.965 billion versus the analyst consensus of $1.940 billion. ARR is expected to be $1.975 billion-$1.990 billion.

Dynatrace expects adjusted EPS of $1.56-$1.59 versus the consensus estimate of $1.54.

Price Action: DT shares traded higher by 4.8% at $53.00 at last check Wednesday.

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