Dynatrace beats top-line and bottom-line estimates; initiates Q4 and updates FY26 outlook

2026-02-09 06:39:33 ET

• Dynatrace press release ( DT ): Q3 Non-GAAP EPS of $0.44 beats by $0.03 .
• Revenue of $515.47M (+18.2% Y/Y) beats by $9.24M .
• Total ARR of $1,972 million, an increase of 20%, or 16% on a constant currency basis.
• Subscription revenue of $493 million, an increase of 18%, or 16% on a constant currency basis.

• (In millions, except per share data)	Current GuidanceFiscal 2026		Prior GuidanceFiscal 2026*		Guidance Changeat Midpoint**
  ARR	$2,053 - $2,061		$2,010 - $2,025		$40
  As reported	18.5% - 19%		16% - 17%		225 bps
  Constant currency	15.5% - 16%		14% - 15%		125 bps
  Total revenue	$2,005 - $2,010 vs. $1.99B consensus		$1,985 - $1,995		$18
  As reported	18% - 18.5%		17% - 17.5%		100 bps
  Constant currency	16%		15% - 15.5%		75 bps
  Subscription revenue	$1,917 - $1,922		$1,898 - $1,908		$17
  As reported	18% - 18.5%		17% - 17.5%		100 bps
  Constant currency	16%		15% - 15.5%		75 bps
  Non-GAAP income from operations	$582 - $587		$571 - $581		$9
  Non-GAAP operating margin	29%		29%		—
  Non-GAAP net income	$508 - $513		$497 - $506		$9
  Non-GAAP net income per diluted share	$1.67 - $1.69 vs. $1.64 consensus		$1.62 - $1.64		$0.05
  Diluted weighted average shares outstanding	304		307 - 308		(4)
  Free cash flow	$520 - $525		$505 - $515		$13
  Free cash flow margin	26%		26%		—
  *Prior guidance was issued on November 5, 2025.**Guidance change at midpoint is rounded to the nearest million.

  (In millions, except per share data)	Q4 Fiscal 2026Guidance
  Total revenue	$518 - $523 vs. $514.35M consensus
  As reported	16% - 17%
  Constant currency	13% - 14%
  Subscription revenue	$493 - $498
  As reported	16% - 17%
  Constant currency	13% - 14%
  Non-GAAP income from operations	$133 - $138
  Non-GAAP operating margin	26%
  Non-GAAP net income	$115 - $120
  Non-GAAP net income per diluted share	$0.38 - $0.39 vs. $0.37 consensus
  Diluted weighted average shares outstanding	303 - 304

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