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Dynatrace Reports Second Quarter Fiscal Year 2026 Financial Results
Exceeds high end of guidance across all metrics; raises FY'26 guidance
Delivers ARR growth of 16% and Subscription Revenue growth of 17% on a constant currency basis
Achieves GAAP Operating Margin of 15% and Non-GAAP Operating Margin of 31%

BOSTON, Mass., November 5, 2025 - Dynatrace (NYSE: DT), the leading AI-powered observability platform, today announced financial results for the second quarter of fiscal 2026 ended September 30, 2025.
“Our strong second quarter results were fueled by the growing demand for end-to-end observability driven by large-scale tool consolidations,” said Rick McConnell, CEO of Dynatrace. “As cloud and AI workloads grow rapidly, the need for an AI-powered observability platform is critical to managing the related complexity and scale. We believe Dynatrace's precise answers, advanced analytics, and deep intelligence uniquely position us to capitalize on the market opportunity ahead.”

Second Quarter Fiscal 2026 Financial and Other Recent Business Highlights:
All growth rates are compared to the second quarter of fiscal 2025, unless otherwise noted.
Financial Highlights:
•Total ARR of $1,899 million, an increase of 17%, or 16% on a constant currency basis
•Total revenue of $494 million, an increase of 18%, or 17% on a constant currency basis
•Subscription revenue of $473 million, an increase of 18%, or 17% on a constant currency basis
•GAAP income from operations of $73 million and non-GAAP income from operations of $153 million
•GAAP net income per share of $0.19 and non-GAAP net income per share of $0.44, on a dilutive basis
Business Highlights:
•Strategic ecosystem advancements:
•Announced a multi-year strategic collaboration with ServiceNow to advance autonomous IT operations to empower customers to drive better outcomes, optimize services, and provide seamless digital experiences that drive customer and employee satisfaction.
•Announced an integration with Atlassian, embedding real-time production insights directly into incident management processes.
•Joined the GitHub Model Context Protocol (MCP) Registry, reinforcing Dynatrace's support for open, modern cloud ecosystems to help developers quickly discover and integrate AI-ready services.

•Go-to-market traction:
•The annual contract value (ACV) from 7-figure deals closed in the quarter grew 53% year-over-year, all of which were in collaboration with partners, and nearly all leveraging end-to-end observability.
•Dynatrace Platform Subscription (DPS) licensing models achieved a major milestone, with 50% of our customer base and 70% of our ARR now leveraging this flexible and scalable subscription approach.

•Industry recognition:
•Named a Leader in the 2025 Gartner Magic Quadrant for Digital Experience Monitoring, positioned furthest for Completeness of Vision.1
•Achieved the AWS Generative AI Competency, affirming Dynatrace's technical proficiency and proven customer success in helping organizations monitor and govern generative AI applications in production.

Share Repurchase Program
•During the second quarter of fiscal 2026, Dynatrace spent $50 million to repurchase 994,000 shares at an average price of $50.27 under its $500 million share repurchase program. From the inception of the program in May 2024 through September 30, 2025, Dynatrace has repurchased 5.3 million shares for $268 million at an average price of $50.05.
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Second Quarter 2026 Financial Highlights
(Unaudited – In thousands, except per share data)
Three Months Ended September 30,
20252024
Annual recurring revenue (ARR):
Total ARR$1,899,402 $1,616,531 
Year-over-Year Increase
17%
Year-over-Year Increase - constant currency (*)
16%
Revenue:
Total revenue$493,849 $418,129 
Year-over-Year Increase
18%
Year-over-Year Increase - constant currency (*)
17%
Subscription revenue
$473,089 $399,810 
Year-over-Year Increase
18%
Year-over-Year Increase - constant currency (*)
17%
GAAP Financial Measures:
GAAP income from operations$72,969 $47,026 
GAAP operating margin15%11%
GAAP net income$57,243 $44,008 
GAAP net income per share - diluted$0.19 $0.15 
GAAP shares outstanding - diluted304,303 301,373 
Net cash provided by operating activities$32,017 $23,650 
Net cash provided by operating activities as a percent of revenue6%6%
Non-GAAP Financial Measures (*):
Non-GAAP income from operations$152,819 $130,669 
Non-GAAP operating margin 31%31%
Non-GAAP net income $132,731 $112,661 
Non-GAAP net income per share - diluted $0.44 $0.37 
Non-GAAP shares outstanding - diluted 304,303 301,373 
Free Cash Flow $27,830 $20,138 
Free Cash Flow margin6%5%
* For additional information, please see the "Non-GAAP Financial Measures" and "Definitions - Non-GAAP and Other Metrics" sections of this press release.


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Financial Outlook
Based on information available as of November 5, 2025, Dynatrace is issuing guidance for the third quarter and updating its prior guidance for full year fiscal 2026 in the table below.
This guidance is based on foreign exchange rates as of October 31, 2025. We expect foreign exchange to be a tailwind of approximately $38 million on ARR and approximately $34 million on revenue for fiscal 2026 compared to ARR and revenue at constant currency. This represents an incremental tailwind of approximately $5 million to both ARR and revenue compared to our prior guidance. This guidance also excludes the impact of any share repurchases after September 30, 2025.
Growth rates for ARR, Total revenue, and Subscription revenue are presented in constant currency to provide better visibility into the underlying growth of the business.
All growth rates below are compared to the third quarter and full year of fiscal 2025.
(In millions, except per share data)
Q3 Fiscal 2026 Guidance
Total revenue
$503 - $508
As reported
15% - 16%
Constant currency
13% - 14%
Subscription revenue
$481 - $486
As reported
15% - 16%
Constant currency
13% - 14%
Non-GAAP income from operations
$143 - $148
Non-GAAP operating margin
28.5% - 29%
Non-GAAP net income
$123 - $128
Non-GAAP net income per diluted share
$0.40 - $0.42
Diluted weighted average shares outstanding
305 - 306

(In millions, except per share data)
Current Guidance
Fiscal 2026
Prior Guidance
Fiscal 2026*
Guidance Change
at Midpoint**
ARR
$2,010 - $2,025
$1,988 - $2,003
$22
As reported
16% - 17%
15% - 16%
100 bps
Constant currency
14% - 15%
13% - 14%
100 bps
Total revenue
$1,985 - $1,995
$1,970 - $1,985
$13
As reported
17% - 17.5%
16% - 17%
75 bps
Constant currency
15% - 15.5%
14% - 15%
75 bps
Subscription revenue
$1,898 - $1,908
$1,884 - $1,899
$12
As reported
17% - 17.5%
16% - 17%
75 bps
Constant currency
15% - 15.5%
14% - 15%
75 bps
Non-GAAP income from operations
$571 - $581
$563 - $573
$8
Non-GAAP operating margin
29%
29%
—
Non-GAAP net income
$497 - $506
$488 - $500
$8
Non-GAAP net income per diluted share
$1.62 - $1.64
$1.58 - $1.61
$0.04
Diluted weighted average shares outstanding
307 - 308
309 - 310
(2)
Free cash flow
$505 - $515
$505 - $515
—
Free cash flow margin
26%
26%
—
*Prior guidance was issued on August 6, 2025.
**Guidance change at midpoint is rounded to the nearest million.





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Conference Call and Webcast Information
Dynatrace will host a conference call and live webcast to discuss its results and business outlook at 8:00 a.m. Eastern Time today, November 5, 2025. To access the conference call from the U.S. and Canada, dial (866) 405-1247, or internationally, dial (201) 689-8045 with event confirmation #: 13756802. The call will also be available live via webcast on the company’s website, ir.dynatrace.com.

An audio replay of the call will also be available until 11:59 p.m. Eastern Time on February 4, 2026, by dialing (877) 660-6853 from the U.S. and Canada, or for international callers by dialing (201) 612-7415 and entering event confirmation #: 13756802. In addition, an archived webcast will be available at ir.dynatrace.com.
We announce material financial information to our investors using our Investor Relations website, press releases, SEC filings and public conference calls and webcasts. We also use these channels to disclose information about the company, our planned financial and other announcements, attendance at upcoming investor and industry conferences, and for complying with our disclosure obligations under Regulation FD.
Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in accordance with GAAP, this press release and the accompanying tables contain certain non-GAAP financial measures as defined by Regulation G, including non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share, free cash flow, and free cash flow margin. We also use or discuss non-GAAP financial measures in conference calls, slide presentations and webcasts.

We use these non-GAAP financial measures for financial and operational decision-making purposes, and as a means to evaluate period-to-period comparisons and liquidity. We believe that these non-GAAP financial measures provide useful information about our operating results, enhance the overall understanding of past financial performance and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making.

The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Our non-GAAP financial measures may not provide information that is directly comparable to similarly titled metrics provided by other companies.

Non-GAAP financial measures are defined in this press release and the tables included in this press release include reconciliations of historical non-GAAP financial measures to their most directly comparable GAAP measures.

We also include non-GAAP financial measures in our financial outlook included in this press release. Reconciliations of forward-looking non-GAAP income from operations, non-GAAP net income, non-GAAP net income per diluted share, and free cash flow guidance to the most directly comparable GAAP measures are not available without unreasonable efforts due to the high variability, complexity, and low visibility with respect to the charges excluded from these non-GAAP measures; in particular, the measures and effects of share-based compensation expense, employer taxes and tax deductions specific to equity compensation awards that are directly impacted by future hiring, turnover and retention needs, as well as unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.
Definitions - Non-GAAP and Other Metrics
Annual Recurring Revenue (ARR) is defined as the daily revenue of all subscription agreements that are actively generating revenue as of the last day of the reporting period multiplied by 365. We exclude from our calculation of ARR any revenues derived from month-to-month agreements and/or product usage overage billings.
Constant Currency amounts for ARR, Total revenue, and Subscription revenue are presented to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign exchange rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year.
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Non-GAAP Income from Operations is defined as GAAP income from operations adjusted for the following items: share-based compensation; employer payroll taxes on employee stock transactions; amortization of intangibles; transaction, restructuring and other non-recurring or unusual items that may arise from time to time. The related Non-GAAP Operating Margin is non-GAAP income from operations expressed as a percentage of total revenue.
Non-GAAP Net Income is defined as GAAP net income adjusted for the following items: income tax expense/benefit; non-GAAP effective cash taxes; net interest expense and income; net cash received from and paid for interest; share-based compensation; employer payroll taxes on employee stock transactions, amortization of intangibles; gains and losses on currency translation; and transaction, restructuring and other non-recurring or unusual items that may arise from time to time. Non-GAAP net income per diluted share is calculated as non-GAAP net income divided by the diluted weighted average shares outstanding used to compute GAAP net income per diluted share.
Free Cash Flow is defined as the net cash provided by or used in operating activities less capital expenditures, reflected as purchase of property and equipment and capitalized software additions in our financial statements. The related margin is free cash flow expressed as a percentage of total revenue.
About Dynatrace
Dynatrace (NYSE: DT) is advancing observability for today’s digital businesses, helping to transform the complexity of modern digital ecosystems into powerful business assets. By leveraging AI-powered insights, Dynatrace enables organizations to analyze, automate, and innovate faster to drive their business forward. To learn more about Dynatrace, visit www.dynatrace.com, visit our blog and follow us on LinkedIn and X @dynatrace.
Dynatrace and the Dynatrace logo are trademarks of the Dynatrace, Inc. group of companies. All other trademarks are the property of their respective owners. © 2025 Dynatrace LLC.
Cautionary Language Concerning Forward-Looking Statements
This press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding cloud and artificial intelligence (AI) workload growth and the related need for AI-powered observability platforms, Dynatrace's capabilities and platform and the company's related market opportunity, the expected and current benefits that we believe organizations receive from using the Dynatrace platform and offerings of our partners and other companies with which we collaborate, and our financial and business outlook, including our financial guidance for the third quarter and full year of fiscal 2026. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as “will,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” or words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation, our ability to maintain our revenue growth rates in future periods; market adoption of our product offerings; continued demand for, and spending on, our solutions; our ability to innovate and develop solutions that meet customer needs as cloud and AI workloads grow rapidly; the ability of our platform and solutions to effectively interoperate with customers’ IT infrastructures; our ability to acquire new customers and retain and expand our relationships with existing customers; our ability to expand our sales and marketing capabilities; our ability to compete; our ability to maintain successful relationships with partners; security breaches, other security incidents and any real or perceived errors, failures, defects or vulnerabilities in our solutions; our ability to protect our intellectual property; our ability to hire and retain necessary qualified employees to grow our business and expand our operations; our ability to successfully complete acquisitions and to integrate newly acquired businesses and offerings; the effect on our business of the macroeconomic environment, associated global economic conditions and geopolitical disruption; and other risks set forth under the caption “Risk Factors” in our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, and our other SEC filings. We assume no obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.

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Gartner Disclaimers
1) Gartner, Magic Quadrant for Digital Experience Monitoring, Padraig Byrne, Pankaj Prasad, DB Cummings, Martin Caren, and Tanmay Bisht, 27 October 2025.
The Gartner content described herein (the “Gartner Content”) represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and is not a representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this earnings press release), and the opinions expressed in the Gartner Content are subject to change without notice.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and MAGIC QUADRANT is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved.
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DYNATRACE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited – In thousands, except per share data)
Three Months Ended
September 30,		Six Months Ended
September 30,
2025202420252024
Revenue:
Subscription$473,089 $399,810 $930,596 $781,386 
Service20,760 18,319 40,602 35,963 
Total revenue493,849 418,129 971,198 817,349 
Cost of revenue:
Cost of subscription68,404 55,796 133,422 109,368 
Cost of service20,501 17,595 39,856 34,397 
Amortization of acquired technology859 4,393 1,695 8,772 
Total cost of revenue89,764 77,784 174,973 152,537 
Gross profit404,085 340,345 796,225 664,812 
Operating expenses:
Research and development 114,992 95,366 223,164 182,944 
Sales and marketing 167,675 144,224 332,989 289,330 
General and administrative48,437 48,953 104,741 93,931 
Amortization of other intangibles12 4,776 24 9,552 
Total operating expenses331,116 293,319 660,918 575,757 
Income from operations72,969 47,026 135,307 89,055 
Interest income, net13,242 12,850 25,537 25,625 
Other income (expense), net894 (2,038)7,651 (4,073)
Income before income taxes87,105 57,838 168,495 110,607 
Income tax expense(29,862)(13,830)(63,297)(27,979)
Net income$57,243 $44,008 $105,198 $82,628 
Net income per share:
Basic$0.19 $0.15 $0.35 $0.28 
Diluted$0.19 $0.15 $0.35 $0.27 
Weighted average shares outstanding:
Basic301,558 298,089 300,859 297,736 
Diluted304,303 301,373 304,801 301,714 
UNAUDITED SHARE-BASED COMPENSATION
Three Months Ended
September 30,		Six Months Ended
September 30,
2025202420252024
Cost of revenue$10,015 $9,714 $19,865 $17,444 
Research and development29,718 26,607 56,579 48,187 
Sales and marketing22,576 20,750 42,610 36,772 
General and administrative14,505 14,632 29,655 26,957 
Total share-based compensation$76,814 $71,703 $148,709 $129,360 
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DYNATRACE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
September 30, 2025March 31, 2025
(unaudited)
Assets
Current assets:
Cash and cash equivalents$1,225,023 $1,017,039 
Short-term investments89,637 96,189 
Accounts receivable, net315,044 624,437 
Deferred commissions, current121,948 109,895 
Prepaid expenses and other current assets86,517 83,901 
Total current assets1,838,169 1,931,461 
Long-term investments54,538 51,648 
Property and equipment, net66,084 61,522 
Operating lease right-of-use assets, net78,143 67,479 
Goodwill1,344,006 1,336,435 
Intangible assets, net24,055 25,534 
Deferred tax assets, net523,479 529,550 
Deferred commissions, non-current111,943 95,297 
Other assets41,316 40,752 
Total assets$4,081,733 $4,139,678 
Liabilities and shareholders' equity
Current liabilities:
Accounts payable$21,617 $27,286 
Accrued expenses, current230,030 252,503 
Deferred revenue, current889,957 1,087,518 
Operating lease liabilities, current16,980 13,979 
Total current liabilities1,158,584 1,381,286 
Deferred revenue, non-current42,975 50,989 
Accrued expenses, non-current30,865 24,452 
Operating lease liabilities, non-current69,844 61,384 
Deferred tax liabilities871 419 
Total liabilities1,303,139 1,518,530 
Shareholders' equity:
Common shares, $0.001 par value, 600,000,000 shares authorized, 301,791,098 and 299,813,048 shares issued and outstanding at September 30, 2025 and March 31, 2025, respectively
302 300 
Additional paid-in capital2,424,121 2,370,563 
Retained earnings390,125 284,927 
Accumulated other comprehensive loss(35,954)(34,642)
Total shareholders' equity2,778,594 2,621,148 
Total liabilities and shareholders' equity$4,081,733 $4,139,678 
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DYNATRACE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited – In thousands)
Six Months Ended
September 30,
20252024
Cash flows from operating activities:
Net income$105,198 $82,628 
Adjustments to reconcile net income to cash provided by operations:
Depreciation
9,408 8,635 
Amortization
2,756 19,356 
Share-based compensation
148,709 129,360 
Deferred income taxes
8,894 (39,059)
Other
(8,040)3,133 
Net change in operating assets and liabilities:
Accounts receivable
320,545 300,077 
Deferred commissions
(23,254)(7,166)
Prepaid expenses and other assets
4,145 (14,073)
Accounts payable and accrued expenses
(33,755)(30,479)
Operating leases, net
746 1,465 
Deferred revenue
(233,643)(199,486)
Net cash provided by operating activities
301,709 254,391 
Cash flows from investing activities:
Purchase of property and equipment
(11,669)(6,871)
Capitalized software additions
(194)— 
Acquisition of a business, net of cash acquired— (100)
Purchases of investments(63,764)(80,024)
Proceeds from sales and maturities of investments69,122 40,375 
Net cash used in investing activities
(6,505)(46,620)
Cash flows from financing activities:
Proceeds from employee stock purchase plan
11,871 10,389 
Proceeds from exercise of stock options3,738 8,773 
Repurchases of common stock
(95,034)(90,107)
Taxes paid related to net share settlement of equity awards(16,338)(11,966)
Other(3,314)(1,656)
Net cash used in financing activities(99,077)(84,567)
Effect of exchange rates on cash and cash equivalents11,857 4,990 
Net increase in cash and cash equivalents207,984 128,194 
Cash and cash equivalents, beginning of period1,017,039 778,983 
Cash and cash equivalents, end of period$1,225,023 $907,177 
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DYNATRACE, INC.
GAAP to Non-GAAP Reconciliations
(Unaudited - In thousands, except percentages)
Three Months Ended September 30, 2025
GAAPShare-based compensationEmployer payroll taxes on employee stock transactionsAmortization of intangiblesTransaction, restructuring, and otherNon-GAAP
Non-GAAP income from operations:
Cost of revenue$89,764 $(10,015)$(289)$(859)$— $78,601 
Gross profit404,085 10,015 289 859 — 415,248 
Gross margin82%84%
Research and development114,992 (29,718)(1,156)— — 84,118 
Sales and marketing167,675 (22,576)(549)— — 144,550 
General and administrative48,437 (14,505)(171)— — 33,761 
Amortization of other intangibles12 — — (12)— — 
Income from operations$72,969 $76,814 $2,165 $871 $— $152,819 
Operating margin15%31%

Three Months Ended September 30, 2024
GAAPShare-based compensationEmployer payroll taxes on employee stock transactionsAmortization of intangiblesTransaction, restructuring, and otherNon-GAAP
Non-GAAP income from operations:
Cost of revenue$77,784 $(9,714)$(431)$(4,393)$— $63,246 
Gross profit340,345 9,714 431 4,393 — 354,883 
Gross margin81%85%
Research and development95,366 (26,607)(1,305)— — 67,454 
Sales and marketing 144,224 (20,750)(729)— — 122,745 
General and administrative 48,953 (14,632)(306)— — 34,015 
Amortization of other intangibles4,776 — — (4,776)— — 
Income from operations$47,026 $71,703 $2,771 $9,169 $— $130,669 
Operating margin11%31%





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DYNATRACE, INC.
GAAP to Non-GAAP Reconciliations
(Unaudited - In thousands, except per share data)
Three Months Ended September 30,
20252024
Non-GAAP net income:
Net income$57,243 $44,008 
Income tax expense29,862 13,830 
Non-GAAP effective cash tax(30,129)(30,856)
Interest income, net(13,242)(12,850)
Cash received from interest, net10,041 12,848 
Share-based compensation76,814 71,703 
Employer payroll taxes on employee stock transactions2,165 2,771 
Amortization of intangibles871 9,169 
Transaction, restructuring, and other— — 
(Gain) loss on currency translation(894)2,038 
Non-GAAP net income$132,731 $112,661 
Share count:
Weighted-average shares outstanding - basic301,558 298,089 
Weighted-average shares outstanding - diluted304,303 301,373 
Shares used in non-GAAP per share calculations:
Weighted-average shares outstanding - basic301,558 298,089 
Weighted-average shares outstanding - diluted304,303 301,373 
Non-GAAP net income per share:
Net income per share - basic$0.19 $0.15 
Net income per share - diluted$0.19 $0.15 
Non-GAAP net income per share - basic$0.44 $0.38 
Non-GAAP net income per share - diluted$0.44 $0.37 

Three Months Ended September 30,
20252024
Free cash flow:
Net cash provided by operating activities$32,017 $23,650 
Purchase of property and equipment(4,187)(3,512)
Capitalized software additions— — 
Free cash flow$27,830 $20,138 
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DYNATRACE, INC.
GAAP to Non-GAAP Reconciliations
(Unaudited - In thousands, except percentages)
Six Months Ended September 30, 2025
GAAPShare-based compensationEmployer payroll taxes on employee stock transactionsAmortization of intangiblesTransaction, restructuring, and otherNon-GAAP
Non-GAAP income from operations:
Cost of revenue$174,973 $(19,865)$(1,705)$(1,695)$— $151,708 
Gross profit796,225 19,865 1,705 1,695 — 819,490 
Gross margin82%84%
Research and development223,164 (56,579)(4,559)— — 162,026 
Sales and marketing332,989 (42,610)(2,850)— — 287,529 
General and administrative104,741 (29,655)(1,076)— — 74,010 
Amortization of other intangibles24 — — (24)— — 
Income from operations$135,307 $148,709 $10,190 $1,719 $— $295,925 
Operating margin14%30%

Six Months Ended September 30, 2024
GAAPShare-based compensationEmployer payroll taxes on employee stock transactionsAmortization of intangiblesTransaction, restructuring, and otherNon-GAAP
Non-GAAP income from operations:
Cost of revenue$152,537 $(17,444)$(1,317)$(8,772)$— $125,004 
Gross profit664,812 17,444 1,317 8,772 — 692,345 
Gross margin81%85%
Research and development182,944 (48,187)(3,714)— (3)131,040 
Sales and marketing289,330 (36,772)(2,233)— — 250,325 
General and administrative93,931 (26,957)(916)— 3 66,061 
Amortization of other intangibles9,552 — — (9,552)— — 
Income from operations$89,055 $129,360 $8,180 $18,324 $— $244,919 
Operating margin11%30%



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DYNATRACE, INC.
GAAP to Non-GAAP Reconciliations
(Unaudited - In thousands, except per share data)
Six Months Ended September 30,
20252024
Non-GAAP net income:
Net income$105,198 $82,628 
Income tax expense63,297 27,979 
Non-GAAP effective cash tax(58,793)(57,950)
Interest income, net(25,537)(25,625)
Cash received from interest, net21,876 24,618 
Share-based compensation148,709 129,360 
Employer payroll taxes on employee stock transactions10,190 8,180 
Amortization of intangibles1,719 18,324 
Transaction, restructuring, and other— — 
(Gain) loss on currency translation(7,651)4,073 
Non-GAAP net income$259,008 $211,587 
Share count:
Weighted-average shares outstanding - basic300,859 297,736 
Weighted-average shares outstanding - diluted304,801 301,714 
Shares used in non-GAAP per share calculations:
Weighted-average shares outstanding - basic300,859 297,736 
Weighted-average shares outstanding - diluted304,801 301,714 
Non-GAAP net income per share:
Net income per share - basic$0.35 $0.28 
Net income per share - diluted$0.35 $0.27 
Non-GAAP net income per share - basic$0.86 $0.71 
Non-GAAP net income per share - diluted$0.85 $0.70 


Six Months Ended September 30,
20252024
Free cash flow:
Net cash provided by operating activities
$301,709 $254,391 
Purchase of property and equipment(11,669)(6,871)
Capitalized software additions(194)— 
Free cash flow$289,846 $247,520 
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Contacts

Investor Contact:
Noelle Faris
VP, Investor Relations
ir@dynatrace.com

Media Relations:
Dynatrace PR Team
pr-team@dynatrace.com





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