Form 8-K

8-K — Dynatrace, Inc.

Accession: 0001773383-26-000011

Filed: 2026-05-13

Period: 2026-05-13

CIK: 0001773383

SIC: 7372 (SERVICES-PREPACKAGED SOFTWARE)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — dt-20260513.htm (Primary)

EX-99.1 (fy26q4-earningsreleaseex99.htm)

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XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K

8-K (Primary)

Filename: dt-20260513.htm · Sequence: 1

dt-20260513

0001773383false00017733832026-05-132026-05-13

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 13, 2026

DYNATRACE, INC.

(Exact name of Registrant as specified in its charter)

Delaware

001-39010

47-2386428

(State or other jurisdiction of

incorporation)

(Commission

File Number)

(I.R.S. Employer

Identification No.)

280 Congress Street, 11th Floor

Boston,

Massachusetts 02210

(Address of principal executive offices)

(Zip Code)

(781) 530-1000

Registrant's telephone number, including area code

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered

Common Stock, par value $0.001 per share DT New York Stock Exchange

Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.02. Results of Operations and Financial Conditions.

On May 13, 2026, Dynatrace, Inc. (the "Company") issued a press release announcing, and will hold a conference call to discuss, the Company's financial results and other information for the fiscal quarter and year ended March 31, 2026. The full text of the press release is furnished as Exhibit 99.1 to this report and incorporated into this Item 2.02 by reference.

The information in this Item 2.02 of this Report on Form 8-K and Exhibit 99.1 attached hereto is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit

No. Description

99.1

Press Release issued by Dynatrace, Inc. dated May 13, 2026

104 Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: May 13, 2026

DYNATRACE, INC.

By: /s/ James Benson

Name: James Benson

Title: Executive Vice President, Chief Financial Officer & Treasurer

EX-99.1

Filename: fy26q4-earningsreleaseex99.htm · Sequence: 2

Document

Exhibit 99.1

Dynatrace Reports Fourth Quarter and Full Year Fiscal 2026 Financial Results

Surpasses $2 billion in ARR and reports double digit net new ARR growth

Delivers fourth consecutive quarter of 16% ARR growth on a constant currency basis

Achieves FY26 GAAP Operating Margin of 12% and Non-GAAP Operating Margin of 29%

Increases Q4 share repurchases sequentially by 40% to $224 million

BOSTON, Mass., May 13, 2026 - Dynatrace (NYSE: DT), the leading AI-powered observability platform, today announced financial results for the fourth quarter and full year ended March 31, 2026.

"Dynatrace delivered a strong finish to FY26, surpassing $2 billion in ARR and achieving our fourth consecutive quarter of 16% constant currency ARR growth,” said Rick McConnell, CEO of Dynatrace. “In an AI‑first world, observability has become mission critical to a vastly higher percentage of workloads. Customers are choosing Dynatrace for our end‑to‑end platform, which serves as both the intelligence engine for deterministic AI and contextual analytics, as well as the control plane to coordinate agentic action. By enabling system resilience and AI reliability, Dynatrace is helping customers drive more autonomous operations and optimal business outcomes. As we look ahead, our objective is to accelerate ARR growth while delivering balanced growth and profitability."

“We significantly increased the pace of our share buyback in the fourth quarter, repurchasing $224 million of Dynatrace stock,” said Jim Benson, Chief Financial Officer. “This uptick reflects our conviction in Dynatrace’s operational momentum, long term growth and cash flow trajectory, and the underlying value of our shares. Through our disciplined capital allocation approach and strong balance sheet, we will continue investing in innovation and growth while delivering value to shareholders.”

All growth rates are compared to the fourth quarter and full year fiscal 2025 ended March 31, 2025 unless otherwise noted.

Fourth Quarter Fiscal 2026 Financial Highlights:

•Total ARR of $2,054 million, an increase of 18%, or 16% on a constant currency basis

•Total revenue of $532 million, an increase of 19%, or 16% on a constant currency basis

•Subscription revenue of $506 million, an increase of 19%, or 16% on a constant currency basis

•GAAP income from operations of $37 million and non-GAAP income from operations of $143 million

•GAAP net income per share of $0.06 and non-GAAP net income per share of $0.41, on a dilutive basis

Full Year Fiscal 2026 Financial Highlights:

•Total revenue of $2,018 million, an increase of 19%, or 17% on a constant currency basis

•Subscription revenue of $1,930 million, an increase of 19%, or 17% on a constant currency basis

•GAAP income from operations of $245 million and non-GAAP income from operations of $592 million

•GAAP net income per share of $0.54 and non-GAAP net income per share of $1.70, on a dilutive basis

•GAAP operating cash flow of $562 million and free cash flow of $529 million

Business Highlights:

•Ongoing traction in go-to-market strategy resulted in an increase in average deal size. Dynatrace closed a record 22 deals greater than $1 million in annual contract value (ACV) in the fourth quarter, nine of which were new logos.

•Log management remained the fastest growing major product category, with Q4 consumption continuing to grow more than 100% year-over-year.

•Enhanced the company's offerings through two acquisitions:

◦DevCycle, a feature management platform on the OpenFeature standard that helps developers, site reliability engineers, and platform teams bring progressive delivery for AI-native applications directly into the Dynatrace platform.

◦Bindplane, a company whose open-standards-based telemetry pipeline capabilities combined with AI-powered observability gives customers greater access, flexibility, and control of their logs, metrics, and

application data.

•Surpassed $1 billion in AWS Marketplace sales, a key indicator of hyperscaler engagement.

•Expanded the Dynatrace Model Context Protocol (MCP) server as a connector for Anthropic's Claude Code, Cowork, and Chat to bring observability and security context into every Claude session. And extended integration with GitHub Advanced Security to share the runtime context of monitored Kubernetes environments with developers and security teams.

•Recognized as a Customers’ Choice in the 2025 Gartner Peer Insights Voice of the Customer for Observability Platforms report.1

Share Repurchase Program

•During the fourth quarter of fiscal 2026, Dynatrace spent $224 million to repurchase 5.9 million shares at an average price of $37.71. Dynatrace completed its initial $500 million share repurchase program, and $151 million of purchases in the fourth quarter were under its new $1 billion program announced in February 2026.

Fourth Quarter 2026 Financial Highlights

(Unaudited – In thousands, except per share data)

Three Months Ended March 31,

2026 2025

Annual recurring revenue (ARR):

Total ARR $ 2,053,555 $ 1,734,164

Year-over-Year Increase 18 %

Year-over-Year Increase - constant currency (*) 16 %

Revenue:

Total revenue $ 531,716 $ 445,165

Year-over-Year Increase 19 %

Year-over-Year Increase - constant currency (*)

16 %

Subscription revenue $ 505,754 $ 423,570

Year-over-Year Increase 19 %

Year-over-Year Increase - constant currency (*)

16 %

GAAP Financial Measures:

GAAP income from operations $ 37,342 $ 42,914

GAAP operating margin 7 % 10 %

GAAP net income $ 17,416 $ 39,304

GAAP net income per share - diluted $ 0.06 $ 0.13

GAAP shares outstanding - diluted 298,925 304,354

Net cash provided by operating activities $ 226,361 $ 162,790

Net cash provided by operating activities as a percent of revenue 43 % 37 %

Non-GAAP Financial Measures (*):

Non-GAAP income from operations $ 142,576 $ 117,887

Non-GAAP operating margin 27 % 26 %

Non-GAAP net income $ 123,967 $ 99,047

Non-GAAP net income per share - diluted $ 0.41 $ 0.33

Non-GAAP shares outstanding - diluted 298,925 304,354

Free Cash Flow $ 212,403 $ 145,528

Free Cash Flow margin 40 % 33 %

Full Year 2026 Financial Highlights

(Unaudited – In thousands, except per share data)

Year Ended March 31,

2026 2025

Revenue:

Total revenue $ 2,018,387 $ 1,698,683

Year-over-Year Increase 19 %

Year-over-Year Increase - constant currency (*)

17 %

Subscription revenue $ 1,929,722 $ 1,622,163

Year-over-Year Increase 19 %

Year-over-Year Increase - constant currency (*)

17 %

GAAP Financial Measures:

GAAP income from operations

$ 245,387 $ 179,433

GAAP operating margin 12 % 11 %

GAAP net income (**)

$ 162,669 $ 483,684

GAAP net income per share - diluted (**)

$ 0.54 $ 1.59

GAAP shares outstanding - diluted 303,727 303,602

Net cash provided by operating activities $ 561,850 $ 459,419

Net cash provided by operating activities as a percent of revenue 28 % 27 %

Non-GAAP Financial Measures (*):

Non-GAAP income from operations

$ 591,929 $ 493,540

Non-GAAP operating margin 29 % 29 %

Non-GAAP net income $ 517,641 $ 422,313

Non-GAAP net income per share - diluted $ 1.70 $ 1.39

Non-GAAP shares outstanding - diluted 303,727 303,602

Free Cash Flow $ 529,483 $ 430,617

Free Cash Flow margin 26 % 25 %

* For additional information, please see the "Non-GAAP Financial Measures" and "Definitions - Non-GAAP and Other Metrics" sections of this press release.

** During fiscal 2025, Dynatrace completed an intra-entity asset transfer of the global economic rights of intellectual property (IP) from a wholly-owned U.S. subsidiary to a wholly-owned Swiss subsidiary, more closely aligning IP rights with business operations. The transfer generated an income tax benefit of $320.9 million, or $1.06 per share on a dilutive basis.

Financial Outlook

Based on information available as of May 13, 2026, Dynatrace is issuing guidance for the first quarter and full year fiscal 2027 in the table below. Based on foreign exchange rates as of April 30, 2026, the foreign exchange tailwind relative to constant currency is expected to be approximately $10 million on ARR and $15 million on revenue for fiscal 2027. This guidance also excludes the impact of any share repurchases during fiscal 2027.

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 are compared to the first quarter and full year of fiscal 2026 ended March 31, 2026 unless otherwise noted.

(In millions, except per share data) First Quarter

Fiscal 2027 Full Year

Fiscal 2027

ARR -

$2,382 - $2,402

As reported -

16% - 17%

Constant currency -

15.5% - 16.5%

Total revenue

$547 - $551

$2,317 - $2,335

As reported

15%

15% - 16%

Constant currency

13% - 14%

14% - 15%

Subscription revenue

$523 - $527

$2,217 - $2,235

As reported

14% - 15%

15% - 16%

Constant currency

13% - 14%

14% - 15%

Non-GAAP income from operations

$150 - $154

$682 - $690

Non-GAAP operating margin

27.5% - 28%

29.5%

Non-GAAP net income

$130 - $134

$584 - $594

Non-GAAP net income per diluted share

$0.44 - $0.45

$1.93 - $1.95

Diluted weighted average shares outstanding

298 - 299

302 - 304

Free cash flow -

$613 - $620

Free cash flow margin -

26.5%

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, May 13, 2026. To access the conference call from the U.S. and Canada, dial (866) 405-1247, or internationally, dial (201) 689-8045 with event confirmation #: 13760309. 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 August 13, 2026 by dialing (877) 660-6853 from the U.S. or Canada, or for international callers by dialing (201) 612-7415 and entering event confirmation #: 13760309. 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.

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.

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 the company's objective to accelerate ARR growth while delivering balanced growth and profitability, the company's plans to invest in innovation and growth while delivering value to shareholders, 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 integrate, and our financial and business outlook, including our financial guidance for the first quarter and full year of fiscal 2027. 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.

_____________________

Gartner Disclaimers

1Gartner, Voice of the Customer for Observability Platforms, Peer Community Contributors, 24 December 2025.

Gartner Peer Insights content consists of the opinions of individual end users based on their own experiences, and should not be construed as statements of fact, nor do they represent the views of Gartner or its affiliates. Gartner does not endorse any vendor, product or service depicted in this content nor makes any warranties, expressed or implied, with respect to this content, about its accuracy or completeness, including any warranties of merchantability or fitness for a particular purpose.

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.

DYNATRACE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited - In thousands, except per share data)

Three Months Ended March 31, Twelve Months Ended March 31,

2026 2025 2026 2025

Revenue:

Subscription $ 505,754 $ 423,570 $ 1,929,722 $ 1,622,163

Service 25,962 21,595 88,665 76,520

Total revenue 531,716 445,165 2,018,387 1,698,683

Cost of revenue:

Cost of subscription 77,356 63,265 284,611 233,299

Cost of service 23,112 21,095 84,105 73,631

Amortization of acquired technology 927 734 3,488 13,262

Total cost of revenue 101,395 85,094 372,204 320,192

Gross profit 430,321 360,071 1,646,183 1,378,491

Operating expenses:

Research and development 130,579 103,285 474,312 384,572

Sales and marketing 183,442 161,797 690,489 605,599

General and administrative 60,413 52,062 217,414 195,347

Amortization of other intangibles 20 13 56 13,540

Impairment of long-lived assets 18,525 — 18,525 —

Total operating expenses 392,979 317,157 1,400,796 1,199,058

Income from operations 37,342 42,914 245,387 179,433

Interest income, net 10,111 10,930 47,731 48,281

Other (expense) income, net (638) 1,860 6,643 (4,285)

Income before income taxes 46,815 55,704 299,761 223,429

Income tax (expense) benefit (29,399) (16,400) (137,092) 260,255

Net income $ 17,416 $ 39,304 $ 162,669 $ 483,684

Net income per share:

Basic

$ 0.06 $ 0.13 $ 0.54 $ 1.62

Diluted

$ 0.06 $ 0.13 $ 0.54 $ 1.59

Weighted average shares outstanding:

Basic

297,544 299,441 300,102 298,384

Diluted

298,925 304,354 303,727 303,602

SHARE-BASED COMPENSATION

Three Months Ended March 31, Twelve Months Ended March 31,

2026 2025 2026 2025

Cost of revenue $ 9,619 $ 9,659 $ 40,276 $ 36,924

Research and development 28,371 26,097 114,110 100,866

Sales and marketing 19,987 19,855 84,480 77,336

General and administrative 15,022 14,593 60,760 56,577

Total share-based compensation expense $ 72,999 $ 70,204 $ 299,626 $ 271,703

DYNATRACE, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited - In thousands, except share data)

March 31,

2026 2025

Assets

Current assets:

Cash and cash equivalents $ 1,097,220 $ 1,017,039

Short-term marketable securities 74,881 96,189

Accounts receivable, net 710,200 624,437

Deferred contract costs, current 127,495 109,895

Prepaid expenses and other current assets 113,651 83,901

Total current assets 2,123,447 1,931,461

Long-term marketable securities 51,908 51,648

Property and equipment, net 72,993 61,522

Operating lease right-of-use asset, net 139,285 67,479

Goodwill 1,350,256 1,336,435

Intangible assets, net 22,850 25,534

Deferred tax assets, net 508,742 529,550

Deferred contract costs, non-current 113,111 95,297

Other assets 33,133 40,752

Total assets $ 4,415,725 $ 4,139,678

Liabilities and shareholders' equity

Current liabilities:

Accounts payable $ 2,728 $ 27,286

Accrued expenses, current 302,260 252,503

Deferred revenue, current 1,241,488 1,087,518

Operating lease liabilities, current 22,588 13,979

Total current liabilities 1,569,064 1,381,286

Deferred revenue, non-current 53,387 50,989

Accrued expenses, non-current 38,205 24,452

Operating lease liabilities, non-current 141,736 61,384

Deferred tax liabilities 1,943 419

Total liabilities 1,804,335 1,518,530

Shareholders' equity:

Common shares, $0.001 par value, 600,000,000 shares authorized, 294,652,951 and 299,813,048 shares issued and outstanding at March 31, 2026 and 2025, respectively

295 300

Additional paid-in capital 2,199,494 2,370,563

Retained earnings 447,596 284,927

Accumulated other comprehensive loss (35,995) (34,642)

Total shareholders' equity 2,611,390 2,621,148

Total liabilities and shareholders' equity $ 4,415,725 $ 4,139,678

DYNATRACE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited - In thousands)

Three Months Ended March 31, Twelve Months Ended March 31,

2026 2025 2026 2025

Cash flows from operating activities:

Net income $ 17,416 $ 39,304 $ 162,669 $ 483,684

Adjustments to reconcile net income to cash provided by operations:

Depreciation 4,702 5,385 18,446 19,236

Amortization 1,462 1,265 5,613 28,868

Share-based compensation 72,999 70,204 299,626 271,703

Deferred income taxes 6,658 (14,147) 25,132 (392,942)

Impairment of long-lived assets 18,525 — 18,525 —

Other 989 (2,100) (6,928) 2,035

Net change in operating assets and liabilities:

Accounts receivable (245,159) (228,277) (77,127) (24,026)

Deferred contract costs (7,203) (11,613) (31,057) (14,648)

Prepaid expenses and other assets (24,981) (15,020) (15,977) (36,593)

Accounts payable and accrued expenses 56,344 59,142 25,896 31,534

Operating leases, net 978 (665) 2,434 (231)

Deferred revenue 323,631 259,312 134,598 90,799

Net cash provided by operating activities 226,361 162,790 561,850 459,419

Cash flows from investing activities:

Purchase of property and equipment (13,958) (14,566) (32,173) (26,106)

Capitalized software additions — (2,696) (194) (2,696)

Acquisition of businesses, net of cash acquired (6,000) — (6,000) (100)

Purchases of marketable securities (11,448) (37,566) (120,306) (145,555)

Proceeds from sales and maturities of marketable securities 39,847 36,997 143,729 105,142

Other (750) — (750) —

Net cash provided by (used in) investing activity 7,691 (17,831) (15,694) (69,315)

Cash flows from financing activities:

Proceeds from employee stock purchase plan — — 24,390 21,159

Proceeds from exercise of stock options 1,786 6,092 6,487 20,995

Repurchases of common stock (223,675) (42,518) (478,708) (172,618)

Taxes paid related to net share settlement of equity awards (2,211) (2,620) (21,845) (18,958)

Other (552) (552) (4,418) (2,208)

Net cash used in financing activities (224,652) (39,598) (474,094) (151,630)

Effect of exchange rates on cash and cash equivalents (3,714) 4,196 8,119 (418)

Net increase in cash and cash equivalents 5,686 109,557 80,181 238,056

Cash and cash equivalents, beginning of period 1,091,534 907,482 1,017,039 778,983

Cash and cash equivalents, end of period $ 1,097,220 $ 1,017,039 $ 1,097,220 $ 1,017,039

DYNATRACE, INC.

GAAP to Non-GAAP Reconciliations

(Unaudited - In thousands, except percentages)

Three Months Ended March 31, Twelve Months Ended March 31,

2026 2025 2026 2025

Non-GAAP cost of revenue:

Cost of revenue $ 101,395 $ 85,094 $ 372,204 $ 320,192

Share-based compensation (9,619) (9,659) (40,276) (36,924)

Employer payroll taxes on employee stock transactions (489) (661) (2,458) (2,447)

Amortization of intangibles (927) (734) (3,488) (13,262)

Transaction, restructuring, and other (1,475) — (1,475) —

Non-GAAP cost of revenue $ 88,885 $ 74,040 $ 324,507 $ 267,559

Non-GAAP gross profit:

Gross profit $ 430,321 $ 360,071 $ 1,646,183 $ 1,378,491

Share-based compensation 9,619 9,659 40,276 36,924

Employer payroll taxes on employee stock transactions 489 661 2,458 2,447

Amortization of intangibles 927 734 3,488 13,262

Transaction, restructuring, and other 1,475 — 1,475 —

Non-GAAP gross profit $ 442,831 $ 371,125 $ 1,693,880 $ 1,431,124

GAAP gross margin 81 % 81 % 82 % 81 %

Non-GAAP gross margin 83 % 83 % 84 % 84 %

Non-GAAP operating expenses:

Operating expenses $ 392,979 $ 317,157 $ 1,400,796 $ 1,199,058

Share-based compensation (63,380) (60,545) (259,350) (234,779)

Employer payroll taxes on employee stock transactions (2,719) (3,309) (12,834) (12,997)

Amortization of intangibles (20) (13) (56) (13,540)

Transaction, restructuring, and other (26,605) (52) (26,605) (158)

Non-GAAP operating expenses $ 300,255 $ 253,238 $ 1,101,951 $ 937,584

Non-GAAP income from operations:

Income from operations $ 37,342 $ 42,914 $ 245,387 $ 179,433

Share-based compensation 72,999 70,204 299,626 271,703

Employer payroll taxes on employee stock transactions 3,208 3,970 15,292 15,444

Amortization of intangibles 947 747 3,544 26,802

Transaction, restructuring, and other 28,080 52 28,080 158

Non-GAAP income from operations $ 142,576 $ 117,887 $ 591,929 $ 493,540

GAAP operating margin 7 % 10 % 12 % 11 %

Non-GAAP operating margin 27 % 26 % 29 % 29 %

DYNATRACE, INC.

GAAP to Non-GAAP Reconciliations

(Unaudited - In thousands, except per share data)

Three Months Ended March 31, Twelve Months Ended March 31,

2026 2025 2026 2025

Non-GAAP net income:

Net income $ 17,416 $ 39,304 162,669 483,684

Income tax expense (benefit) 29,399 16,400 137,092 (260,255)

Non-GAAP effective cash tax (28,223) (29,616) (117,584) (118,154)

Interest income, net (10,111) (10,930) (47,731) (48,281)

Cash received from interest, net 9,614 10,776 43,296 46,927

Share-based compensation 72,999 70,204 299,626 271,703

Employer payroll taxes on employee stock transactions 3,208 3,970 15,292 15,444

Amortization of intangibles 947 747 3,544 26,802

Transaction, restructuring, and other 28,080 52 28,080 158

Loss (gain) on currency translation 638 (1,860) (6,643) 4,285

Non-GAAP net income $ 123,967 $ 99,047 $ 517,641 $ 422,313

Share count:

Weighted-average shares outstanding - basic 297,544 299,441 300,102 298,384

Weighted-average shares outstanding - diluted 298,925 304,354 303,727 303,602

Shares used in non-GAAP per share calculations:

Weighted-average shares outstanding - basic 297,544 299,441 300,102 298,384

Weighted-average shares outstanding - diluted 298,925 304,354 303,727 303,602

Non-GAAP net income per share:

Net income per share - basic $ 0.06 $ 0.13 $ 0.54 $ 1.62

Net income per share - diluted $ 0.06 $ 0.13 $ 0.54 $ 1.59

Non-GAAP net income per share - basic $ 0.42 $ 0.33 $ 1.72 $ 1.42

Non-GAAP net income per share - diluted $ 0.41 $ 0.33 $ 1.70 $ 1.39

Three Months Ended March 31, Twelve Months Ended March 31,

2026 2025 2026 2025

Free cash flow:

Net cash provided by operating activities $ 226,361 $ 162,790 $ 561,850 $ 459,419

Purchase of property and equipment (13,958) (14,566) (32,173) (26,106)

Capitalized software additions — (2,696) (194) (2,696)

Free cash flow $ 212,403 $ 145,528 $ 529,483 $ 430,617

Contacts

Investor Contact:

Noelle Faris

VP, Investor Relations

ir@dynatrace.com

Media Contact:

Stacy Gong

VP, Corporate Communications

pr-team@dynatrace.com

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Entity Address, Address Line One

280 Congress Street, 11th Floor

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