# Dynatrace, Inc. (DT)

Informational only - not investment advice.

CIK: 0001773383
SIC: 7372 Services-Prepackaged Software
SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7372 Services-Prepackaged Software](/industry/7372/)
Latest 10-K filed: 2026-05-20
SEC page: https://www.sec.gov/edgar/browse/?CIK=1773383
Filing source: https://www.sec.gov/Archives/edgar/data/1773383/000177338326000019/dt-20260331.htm

## At a glance

FY2026 · period end 2026-03-31 · filed 2026-05-20 · accession 0001773383-26-000019 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001773383.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 2,018,387,000 USD | 2026 | verified |
| Net income | 162,669,000 USD | 2026 | verified |
| Assets | 4,415,725,000 USD | 2026 | verified |
| Free cash flow | 529,677,000 USD | 2026 | computed |
| Net margin | 8.06% | 2026 | computed |
| Operating margin | 12.16% | 2026 | computed |
| Revenue YoY | +18.82% | 2026 | computed |
| ROE | 6.23% | 2026 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2026 revenue ÷ FY2025 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | DT | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 8.1% | 1.5% | 64 | 122 |
| Operating margin | 12.2% | 1.3% | 70 | 121 |
| Revenue growth | 18.8% | 13.5% | 70 | 124 |
| FCF margin | 26.2% | 19.3% | 75 | 120 |
| ROE | 6.2% | 2.0% | 59 | 112 |
| ROA | 3.7% | 0.9% | 63 | 124 |
| Liabilities / equity | 0.69 | 0.91 | 32 | 113 |
| Current ratio | 1.35 | 1.57 | 41 | 124 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7372 Services-Prepackaged Software, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 2018387000 | USD | 2026 | 2026-05-20 |
| Net income | 162669000 | USD | 2026 | 2026-05-20 |
| Assets | 4415725000 | USD | 2026 | 2026-05-20 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-20. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001773383.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 398,047,000 | 430,966,000 | 545,803,000 | 703,509,000 | 929,445,000 | 1,158,530,000 | 1,430,530,000 | 1,698,683,000 | 2,018,387,000 |
| Net income |  | 9,222,000 | -116,194,000 | -413,817,000 | 75,714,000 | 52,451,000 | 107,959,000 | 154,632,000 | 483,684,000 | 162,669,000 |
| Operating income |  | -21,759,000 | -72,707,000 | -171,939,000 | 91,896,000 | 81,307,000 | 92,811,000 | 128,400,000 | 179,433,000 | 245,387,000 |
| Gross profit |  | 301,513,000 | 324,165,000 | 416,872,000 | 575,801,000 | 756,569,000 | 935,639,000 | 1,164,077,000 | 1,378,491,000 | 1,646,183,000 |
| Diluted EPS |  |  |  | -1.56 | 0.26 | 0.18 | 0.37 | 0.52 | 1.59 | 0.54 |
| Operating cash flow |  | 118,838,000 | 147,141,000 | -142,455,000 | 220,436,000 | 250,917,000 | 354,885,000 | 378,109,000 | 459,419,000 | 561,850,000 |
| Capital expenditures |  | 11,606,000 | 7,377,000 | 19,721,000 | 14,076,000 | 17,695,000 | 21,540,000 | 26,459,000 | 26,106,000 | 32,173,000 |
| Share buybacks |  |  |  |  |  |  | 0.00 | 0.00 | 172,618,000 | 478,708,000 |
| Assets |  |  | 1,811,366,000 | 2,046,877,000 | 2,256,218,000 | 2,541,310,000 | 2,765,347,000 | 3,409,779,000 | 4,139,678,000 | 4,415,725,000 |
| Liabilities |  |  | 2,201,624,000 | 1,081,173,000 | 1,142,617,000 | 1,236,864,000 | 1,160,478,000 | 1,394,289,000 | 1,518,530,000 | 1,804,335,000 |
| Stockholders' equity | -264,506,000 | -268,690,000 | -390,258,000 | 965,704,000 | 1,113,601,000 | 1,304,446,000 | 1,604,869,000 | 2,015,490,000 | 2,621,148,000 | 2,611,390,000 |
| Cash and cash equivalents |  |  | 51,314,000 | 213,170,000 | 324,962,000 | 462,967,000 | 555,348,000 | 778,983,000 | 1,017,039,000 | 1,097,220,000 |
| Free cash flow |  | 107,232,000 | 139,764,000 | -162,176,000 | 206,360,000 | 233,222,000 | 333,345,000 | 351,650,000 | 433,313,000 | 529,677,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | 2.32% | -26.96% | -75.82% | 10.76% | 5.64% | 9.32% | 10.81% | 28.47% | 8.06% |
| Operating margin |  | -5.47% | -16.87% | -31.50% | 13.06% | 8.75% | 8.01% | 8.98% | 10.56% | 12.16% |
| Return on equity |  |  |  | -42.85% | 6.80% | 4.02% | 6.73% | 7.67% | 18.45% | 6.23% |
| Return on assets |  |  | -6.41% | -20.22% | 3.36% | 2.06% | 3.90% | 4.53% | 11.68% | 3.68% |
| Liabilities / equity |  |  |  | 1.12 | 1.03 | 0.95 | 0.72 | 0.69 | 0.58 | 0.69 |
| Current ratio |  |  | 0.22 | 1.00 | 1.05 | 1.10 | 1.08 | 1.28 | 1.40 | 1.35 |

## As-reported value updates

1 tracked difference above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/DT/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001773383.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2023-Q2 | 2022-09-30 |  |  | 0.04 | reported discrete quarter |
| 2023-Q3 | 2022-12-31 |  |  | 0.05 | reported discrete quarter |
| 2024-Q1 | 2023-06-30 |  |  | 0.13 | reported discrete quarter |
| 2024-Q2 | 2023-09-30 | 351,700,000 | 35,809,000 | 0.12 | reported discrete quarter |
| 2024-Q3 | 2023-12-31 | 365,096,000 | 42,691,000 | 0.14 | reported discrete quarter |
| 2024-Q4 | 2024-03-31 | 380,848,000 | 37,944,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2024-06-30 | 399,220,000 | 38,620,000 | 0.13 | reported discrete quarter |
| 2025-Q2 | 2024-09-30 | 418,129,000 | 44,008,000 | 0.15 | reported discrete quarter |
| 2025-Q3 | 2024-12-31 | 436,169,000 | 361,752,000 | 1.19 | reported discrete quarter |
| 2025-Q4 | 2025-03-31 | 445,165,000 | 39,304,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2025-06-30 | 477,349,000 | 47,955,000 | 0.16 | reported discrete quarter |
| 2026-Q2 | 2025-09-30 | 493,849,000 | 57,243,000 | 0.19 | reported discrete quarter |
| 2026-Q3 | 2025-12-31 | 515,473,000 | 40,055,000 | 0.13 | reported discrete quarter |
| 2026-Q4 | 2026-03-31 | 531,716,000 | 17,416,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2027-Q1 | 2026-06-30 | 554,548,000 | 36,651,000 | 0.12 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from DT's latest 10-K: [/company/DT/business/](/company/DT/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from DT's latest 10-K: [/company/DT/risk-factors/](/company/DT/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1773383/000177338326000050/dt-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-08-05
Report date: 2026-06-30

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q. We prepare our condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable SEC rules and regulations regarding interim financial reporting. The following discussion and analysis contains forward-looking statements that involve risks and uncertainties. When reviewing the discussion below, you should keep in mind the substantial risks and uncertainties that could impact our business. In particular, we encourage you to review the risks and uncertainties described in the section titled “Risk Factors” included elsewhere in this Form 10-Q and in our Form 10-K for the fiscal year ended March 31, 2026 (the “Annual Report”). These risks and uncertainties could cause actual results to differ materially from those projected in forward-looking statements contained in this report or implied by past results and trends. Our fiscal year ends on March 31. Our historical results are not necessarily indicative of the results that may be expected for any period in the future, and our interim results are not necessarily indicative of the results we expect for the full fiscal year or any other period.

Overview

Dynatrace combines broad and deep observability, continuous runtime application security, and advanced agentic AI operations to deliver answers and intelligent automation across IT operations, development, security, business, and executive teams. This unified approach enables organizations to optimize their rapidly evolving AI, cloud, and IT operations, accelerate secure software delivery, and improve digital performance. Our vision is a world where software works perfectly.

Our customers include many of the world’s largest enterprises which deploy the Dynatrace platform to support increasingly complex IT environments. As workloads scale and cybersecurity threats evolve, cloud modernization and rapid AI adoption have significantly increased data volume and complexity, rendering traditional monitoring or observability approaches insufficient for many organizations. We believe this positions Dynatrace to address a significant market opportunity through our differentiated platform, deep cloud ecosystem integrations, and trusted customer and partner relationships.

We take Dynatrace to market through a combination of our global direct sales team and a network of partners, including global system integrators (“GSIs”), cloud providers, resellers and technology alliance partners. Dynatrace addresses customer needs at various scales and sizes, but our global direct sales team targets the largest 15,000 companies globally.

We generate revenue primarily by selling subscriptions, which we define as Software-as-a-Service (“SaaS”) agreements, term-based licenses, and maintenance and support agreements. The majority of our customers deploy Dynatrace as a SaaS solution to get the latest Dynatrace features and updates with greatly reduced administrative effort. We also provide options to deploy our platform in customer-provisioned infrastructure.

Our Dynatrace Platform Subscription (“DPS”) licensing model provides customers with a flexible, scalable, and transparent subscription for the modern cloud. Under the DPS licensing model, a customer makes a minimum annual spend commitment at the platform level and then consumes that commitment based on actual usage and a straightforward rate card. Any platform capability can be used in any quantity at any time based on the customer’s evolving needs.

The Dynatrace platform has been commercially available since 2016 and is the primary offering we sell.

First-Quarter 2027 Financial Highlights

Our financial highlights for the three months ended June 30, 2026 were:

•Our annual recurring revenue (“ARR”) was $2,136 million as of June 30, 2026, which reflected 17% growth year-over-year;

•Our total revenue was $555 million, which reflected 16% growth year-over-year;

•Our subscription revenue was $530 million, which reflected 16% growth year-over-year;

•We delivered GAAP income from operations of $71 million and non-GAAP income from operations(1) of $162 million; and

•Our net cash provided by operating activities and adjusted free cash flow(1) was $306 million and $309 million, respectively.

(1) Non-GAAP financial measure. For additional information, please see the “Key Metrics” section below for applicable definitions and the “Non-GAAP Financial Results” section below for a reconciliation to the most directly comparable GAAP financial measure.

We believe in a disciplined and balanced approach to operating our business. We plan to continue driving innovation to meet customers’ needs and grow our customer relationships. We also plan to invest in future growth opportunities that we expect will drive long-term value, while leveraging our global partner ecosystem, optimizing costs, and improving efficiency and profitability.

18

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We believe this approach is even more important at this time as we navigate the current macroeconomic environment, which can include geopolitical considerations, tariffs and trade policies, fluctuations in credit, equity, and foreign currency markets, changes in inflation, interest rates, consumer confidence and spending, and other factors that may affect the buying patterns of our customers and prospective customers, including the size of transactions and length of sales cycles. In the ongoing dynamic macroeconomic landscape, we have seen resiliency in our industry and we remain confident in our ability to execute in this environment. Please see the section titled “Risk Factors” included under Part II, Item 1A of this Quarterly Report for further discussion of the possible impact of macroeconomic conditions on our business and regarding fluctuations in our annual and quarterly operating results.

Key Factors Affecting Our Performance

Our historical financial performance has been, and we expect our financial performance in the future to be, driven by our ability to:

•Extend our technology and market leadership position. We intend to maintain our position as a leading AI-powered observability platform through increased investment in research and development, and innovation. We plan to expand the functionality of our end-to-end Dynatrace platform and invest in capabilities that address new market opportunities. We plan to continue evolving our AI capabilities to drive differentiation, with a continued focus on agentic AI capabilities and functionalities that can act autonomously to make decisions and take actions without human intervention. We also believe we are well positioned to continue growing our next generation log management offering, which integrates logs, traces, metrics, and other core observability and security data types into a fully integrated platform with a single datastore, providing customers with greater value than log management solutions that are viewed as too expensive, providing too little value, or largely operating independently from existing monitoring tools. We believe this strategy will enable new growth opportunities and allow us to deliver differentiated high-value outcomes to our customers.

•Expand and strengthen our relationships with existing customers. We plan to establish new and deeper relationships within our existing customers’ organizations and expand the breadth of our platform capabilities to provide for expansion opportunities. In addition, we believe the ease of implementation of Dynatrace provides us with the opportunity to expand adoption within our existing enterprise customers, across new customer applications, with AI-native, cloud-native and development teams, and into additional business units or divisions. We also believe that our DPS licensing model will drive broader consumption of the Dynatrace platform and further expansion opportunities for customers that prefer the flexibility and predictability of pricing under that model. With access to the full Dynatrace platform, DPS customers are able to adopt Dynatrace more broadly across their IT environments, which can lead to increased consumption.

•Grow our customer base. We intend to drive new customer growth through ongoing investments in our go-to-market strategy focused on customer segmentation, partner enablement, and continued expansion of our sales motion beyond application performance to include end-to-end observability, tool consolidation, and cloud modernization. We plan to continue addressing customer needs at various scales and sizes, with our global direct sales team targeting the largest 15,000 companies globally. In addition, we plan to expand our reach internationally to what we believe are large, mostly untapped, markets for our company, while leveraging our sector specialization globally. We also are focused on intuitive ways for customer teams to onboard and receive additional value from Dynatrace, including through our free trial program.

•Leverage our strategic partner ecosystem. We intend to invest in our strategic partner ecosystem, with a particular emphasis on building and deepening AI- and cloud-focused, loyal and comprehensive partnerships with GSIs and hyperscaler cloud providers. Cloud migration and modernization are foundational growth drivers for our strategic partners and our company. Our strategic partners work with their customers to help them digitally transform their businesses and reduce cloud complexity. By working more closely with strategic partners, our objective is to participate in digital transformation projects earlier in the purchasing cycle and enable customers to establish more resilient cloud deployments from the start.

Key Metrics

We monitor the following key metrics to help us measure and evaluate the effectiveness of our operations:

[[GREPCENT_TABLE]]
[["","As of June 30,"],["","2026","","2025"],["","(in thousands, except percentages)"],["Total ARR","$","2,135,982","","","$","1,822,205"],["Year-over-year increase","17","%","","18","%"],["Dollar-based net retention rate","110","%","","111","%"]]
[[/GREPCENT_TABLE]]

19

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[[GREPCENT_TABLE]]
[["","Three Months Ended June 30,"],["","2026","","2025"],["","(in thousands)"],["Non-GAAP income from operations(1)","$","161,600","","","$","143,106"],["Adjusted free cash flow(1)","309,177","","","262,157"]]
[[/GREPCENT_TABLE]]

(1) Non-GAAP financial measure. For additional information, please see the applicable definitions below and the “Non-GAAP Financial Results” section below for a reconciliation to the most directly comparable GAAP financial measure.

ARR: We define ARR 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.

Dollar-based net retention rate: We define the dollar-based net retention rate as the ARR at the end of a reporting period for the cohort of Dynatrace accounts as of one year prior to the date of calculation, divided by the ARR one year prior to the date of calculation for that same cohort. Our dollar-based net retention rate reflects customer renewals, expansion, contraction and churn. Dollar-based net retention rate is presented on a constant currency basis.

Non-GAAP income from operations: We define non-GAAP income from operations as GAAP income from operations adjusted for the following items: share-based compensation; employer payroll taxes on employee stock transactions; amortization of intangibles; acquisition

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1773383/000177338326000019/dt-20260331.htm
Complete FY 2026 MD&A: /company/DT/mda/fy2026/

Extracted from a substantive MD&A body after the formal Item 7 span was a TOC or reference stub.
Confidence: high
Filing date: 2026-05-20
Report date: 2026-03-31

Overview

Dynatrace combines broad and deep observability, continuous runtime application security, and advanced agentic AI operations to deliver answers and intelligence automation across IT operations, development, security, business, and executive teams. This unified approach enables organizations to optimize their rapidly evolving AI, cloud, and IT operations, accelerate secure software delivery, and improve digital performance. Our vision is a world where software works perfectly.

Our customers include many of the world’s largest enterprises which deploy the Dynatrace platform to support increasingly complex IT environments. As workloads scale and cybersecurity threats evolve, cloud modernization and rapid AI adoption have significantly increased data volume and complexity, rendering traditional monitoring or observability approaches insufficient for many organizations. We believe this positions Dynatrace to address a significant market opportunity through our differentiated platform, deep cloud ecosystem integrations, and trusted customer and partner relationships.

We take Dynatrace to market through a combination of our global direct sales team and a network of partners, including GSIs, cloud providers, resellers and technology alliance partners. Dynatrace addresses customer needs at various scales and sizes, but our global direct sales team targets the largest 15,000 companies globally.

We generate revenue primarily by selling subscriptions, which we define as SaaS agreements, term-based licenses, and maintenance and support agreements. The majority of our customers deploy Dynatrace as a SaaS solution to get the latest Dynatrace features and updates with greatly reduced administrative effort. We also provide options to deploy our platform in customer-provisioned infrastructure.

Our DPS licensing model provides customers with a flexible, scalable, and transparent subscription for the modern cloud. Under the DPS licensing model, a customer makes a minimum annual spend commitment at the platform level and then consumes that commitment based on actual usage and a straightforward rate card. Any platform capability can be used in any quantity at any time based on the customer’s evolving needs.

The Dynatrace platform has been commercially available since 2016 and is the primary offering we sell.

Fiscal 2026 Financial Highlights

Our financial highlights for the year ended March 31, 2026 were:

•Our annual recurring revenue (“ARR”) was $2,054 million as of March 31, 2026, which reflected 18% growth year-over-year;

•Our total revenue was $2,018 million, which reflected 19% growth year-over-year;

•Our subscription revenue was $1,930 million, which reflected 19% growth year-over-year;

•We delivered GAAP income from operations of $245 million and non-GAAP income from operations(1) of $592 million; and

•Our net cash provided by operating activities and free cash flow(1) was $562 million and $529 million, respectively.

(1) Non-GAAP financial measure. For additional information, please see the “Key Metrics” section below for applicable definitions and the “Non-GAAP Financial Results” section below for a reconciliation to the most directly comparable GAAP financial measure.

We believe in a disciplined and balanced approach to operating our business. We plan to continue driving innovation to meet customers’ needs and grow our customer relationships. We also plan to invest in future growth opportunities that we expect will drive long-term value, while leveraging our global partner ecosystem, optimizing costs, and improving efficiency and profitability.

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We believe this approach is even more important at this time as we navigate the current macroeconomic environment, which can include geopolitical considerations, tariffs and trade policies, fluctuations in credit, equity, and foreign currency markets, changes in inflation, interest rates, consumer confidence and spending, and other factors that may affect the buying patterns of our customers and prospective customers, including the size of transactions and length of sales cycles. In the ongoing dynamic macroeconomic landscape, we have seen resiliency in our industry and we remain confident in our ability to execute in this environment. Please see the section titled “Risk Factors” included under Part I, Item 1A for further discussion of the possible impact of macroeconomic conditions on our business and regarding fluctuations in our annual and quarterly operating results.

Key Factors Affecting Our Performance

Our historical financial performance has been, and we expect our financial performance in the future to be, driven by our ability to:

•Extend our technology and market leadership position. We intend to maintain our position as a leading AI-powered observability platform through increased investment in research and development, and innovation. We plan to expand the functionality of our end-to-end Dynatrace platform and invest in capabilities that address new market opportunities. We plan to continue evolving our AI capabilities to drive differentiation, with a continued focus on agentic AI capabilities and functionalities that can act autonomously to make decisions and take actions without human intervention. We also believe we are well positioned to continue growing our next generation log management offering, which integrates logs, traces, metrics, and other core observability and security data types into a a fully integrated platform with a single datastore, providing customers with greater value than log management solutions that are viewed as too expensive, providing too little value, or largely operating independently from existing monitoring tools. We believe this strategy will enable new growth opportunities and allow us to deliver differentiated high-value outcomes to our customers.

•Expand and strengthen our relationships with existing customers. We plan to establish new and deeper relationships within our existing customers’ organizations and expand the breadth of our platform capabilities to provide for expansion opportunities. In addition, we believe the ease of implementation of Dynatrace provides us with the opportunity to expand adoption within our existing enterprise customers, across new customer applications, with AI-native, cloud-native and development teams, and into additional business units or divisions. We also believe that our DPS licensing model will drive broader consumption of the Dynatrace platform and further expansion opportunities for customers that prefer the flexibility and predictability of pricing under that model. With access to the full Dynatrace platform, DPS customers are able to adopt Dynatrace more broadly across their IT environments, which can lead to increased consumption.

•Grow our customer base. We intend to drive new customer growth through ongoing investments in our go-to-market strategy focused on customer segmentation, partner enablement, and continued expansion of our sales motion beyond application performance to include end-to-end observability, tool consolidation, and cloud modernization. We plan to continue addressing customer needs at various scales and sizes, with our global direct sales team targeting the largest 15,000 companies globally. In addition, we plan to expand our reach internationally to what we believe are large, mostly untapped, markets for our company, while leveraging our sector specialization globally. We also are focused on intuitive ways for customer teams to onboard and receive additional value from Dynatrace, including through our free trial program.

•Leverage our strategic partner ecosystem. We intend to invest in our strategic partner ecosystem, with a particular emphasis on building and deepening AI- and cloud-focused, loyal and comprehensive partnerships with GSIs and hyperscaler cloud providers. Cloud migration and modernization are foundational growth drivers for our strategic partners and our company. Our strategic partners work with their customers to help them digitally transform their businesses and reduce cloud complexity. By working more closely with strategic partners, our objective is to participate in digital transformation projects earlier in the purchasing cycle and enable customers to establish more resilient cloud deployments from the start.

43

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Key Metrics

We monitor the following key metrics to help us measure and evaluate the effectiveness of our operations:

[[GREPCENT_TABLE]]
[["","As of March 31,"],["","2026","","2025","","2024"],["","(in thousands, except percentages)"],["Total ARR","$","2,053,555","","","$","1,734,164","","","$","1,503,819"],["Year-over-year increase","18","%","","15","%","","21","%"],["Dollar-based net retention rate","110","%","","110","%","","111","%"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","Fiscal Years Ended March 31,"],["","2026","","2025","","2024"],["","(in thousands)"],["Non-GAAP income from operations(1)","$","591,929","","","$","493,540","","","$","398,239"],["Free cash flow(1)","529,483","","","430,617","","","346,382"]]
[[/GREPCENT_TABLE]]

(1) Non-GAAP financial measure. For additional information, please see the applicable definitions below and the “Non-GAAP Financial Results” section below for a reconciliation to the most directly comparable GAAP financial measure

ARR: We define ARR 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.

Dollar-based net retention rate: We define the dollar-based net retention rate as the ARR at the end of a reporting period for the cohort of Dynatrace accounts as of one year prior to the date of calculation, divided by the ARR one year prior to the date of calculation for that same cohort. Our dollar-based net retention rate reflects customer renewals, expansion, contraction and churn. Dollar-based net retention rate is presented on a constant currency basis.

Non-GAAP income from operations: We define non-GAAP income from operations 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.

Free cash flow: We define free cash flow 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.

Non-GAAP Financial Results

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we provide investors with certain non-GAAP financial measures, including non-GAAP income from operations and free cash flow. 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.

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Table of Contents

The tables below provide a reconciliation of our non-GAAP income from operations and free cash flow to their most directly comparabl

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2026 MD&A: /company/DT/mda/fy2026/
All MD&A years: /company/DT/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2025 MD&A](/company/DT/mda/fy2025/): filed 2025-05-22; accession 0001773383-25-000065 (https://www.sec.gov/Archives/edgar/data/1773383/000177338325000065/dt-20250331.htm)
- [FY 2024 MD&A](/company/DT/mda/fy2024/): filed 2024-05-23; accession 0001773383-24-000076 (https://www.sec.gov/Archives/edgar/data/1773383/000177338324000076/dt-20240331.htm)
- [FY 2023 MD&A](/company/DT/mda/fy2023/): filed 2023-05-25; accession 0001773383-23-000055 (https://www.sec.gov/Archives/edgar/data/1773383/000177338323000055/dt-20230331.htm)
- [FY 2022 MD&A](/company/DT/mda/fy2022/): filed 2022-05-26; accession 0001773383-22-000053 (https://www.sec.gov/Archives/edgar/data/1773383/000177338322000053/dt-20220331.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 7372 Services-Prepackaged Software) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity

Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/DT.md · JSON record: /company/DT.json · verified financials: /company/DT/financials.json / /company/DT/financials.csv · machine TOC for the whole site: /llms.txt