AI Earnings Predictions for Dynatrace Inc. (DT)

EX-99.1

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EX-99.1

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EXHIBIT 99.1

Dynatrace Reports Second Quarter Fiscal Year 2027 Financial Results

ARR grew 16% year-over-year to $2.21 billion

GAAP Operating Margin of 16%; Non-GAAP Operating Margin of 32%

Additional $1 billion authorized for share repurchase program

Investor Day to be held in February 2027

BOSTON, Mass., November 3, 2026 - Dynatrace (NYSE: DT), the leading AI-powered observability platform, today announced financial results for the second quarter of fiscal 2027 ended September 30, 2026.

“Our Q2 results reflect continued top-line growth and strong operational efficiency,” said Rick McConnell, Chief Executive Officer, Dynatrace. “As organizations increasingly deploy AI agents into production, the need for enterprise-grade observability and governance has never been greater. By bringing Arize together with the Dynatrace platform, we are extending our end-to-end capabilities across the AI lifecycle, from development through production, giving customers greater control over model reliability, application performance, and business outcomes.”

“Our robust cash generation enables us to fund our strategic growth priorities while returning substantial capital to shareholders,” said Jim Benson, Chief Financial Officer, Dynatrace. “Expanding our share repurchase authorization by $1 billion underscores the strength of our balance sheet, our confidence in our long-term growth trajectory, and our commitment to thoughtful capital allocation.”

Investor Day

Dynatrace will host an Investor Day on February 16, 2027 in Las Vegas, Nevada in conjunction with its annual Perform user conference. During the event, management will detail the company’s long-term strategic growth priorities, product vision, and operational roadmap toward achieving a “Rule of 50”1 profile in fiscal 2029. Management will also present a capital allocation framework and multi-year financial targets.

Second Quarter Fiscal 2027 Financial and Other Recent Business Highlights:

All growth rates are compared to the second quarter of fiscal 2026, unless otherwise noted.

Financial Highlights:

•Total ARR of $2,207 million, an increase of 16% on an as reported and constant currency basis

•Total revenue of $580 million, an increase of 17% on an as reported and constant currency basis

•Subscription revenue of $553 million, an increase of 17% on an as reported and constant currency basis

•GAAP income from operations of $96 million and non-GAAP income from operations of $184 million

•GAAP net income per share of $0.23 and non-GAAP net income per share of $0.54, on a dilutive basis

Business Highlights

•Platform consumption continued to grow in excess of 20% year-over-year, with AI customer cohorts consuming more than twice the rate of other customers.

•Log management continued to grow well over 100% year-over-year and infrastructure management has surpassed $500 million in annualized consumption, growing approximately 30%.

•More than 1,100 customers are leveraging Dynatrace agents to facilitate autonomous operations, up from more than 800 last quarter.

•Closed 14 deals exceeding $1 million in annual contract value (ACV) during Q2, including a major U.S. bank whose total contract value now exceeds nine figures.

•Completed the acquisition of Arize on October 1, 2026, combining industry-leading AI evaluation and large language model (LLM) monitoring with the Dynatrace platform to help enterprises scale reliable AI agents and applications.

•Announced a strategic partnership with CrowdStrike that unites AI-native cybersecurity and observability, enabling us to further accelerate log management adoption and help customers avoid vendor lock-in.

•Named a Leader in the Forrester Wave™: AIOps Platforms, Q4 2026 report.

1 Dynatrace defines “Rule of 50” as the sum of ARR growth rate at constant currency and non-GAAP operating margin percentage.

1

•Achieved FedRAMP Class D (High) “Initial Implementation” status, advancing toward authorization at the highest U.S. federal cloud security baseline for agencies' most sensitive unclassified workloads.

Share Repurchase Program

•During the second quarter of fiscal 2027, Dynatrace spent $246 million to repurchase 5.2 million shares at an average price of $47.38.

•Dynatrace also announced today that its Board of Directors has authorized an incremental share repurchase program for up to $1 billion of common stock. Including the new authorization, Dynatrace currently has approximately $1.3 billion of total remaining buyback capacity.

•Share repurchases may be made from time to time on the open market or through privately negotiated transactions, including, without limitation, through Rule 10b5-1 trading plans, any other legally permissible means, or any combination of the foregoing. The share repurchase program has no time limit, does not obligate Dynatrace to acquire a specified number of shares, and may be suspended, modified, or terminated at any time

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