Dynatrace ( (DT) ) has released its Q2 earnings. Here is a breakdown of the information Dynatrace presented to its investors.
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Dynatrace, a leading AI-powered observability platform provider, specializes in transforming complex digital ecosystems into valuable business assets within the technology sector. The company has reported strong financial results for the second quarter of fiscal year 2026, surpassing its guidance across all key metrics and raising its full-year outlook.
In the latest earnings report, Dynatrace achieved an annual recurring revenue (ARR) growth of 16% and a subscription revenue increase of 17% on a constant currency basis. The company also reported a GAAP operating margin of 15% and a non-GAAP operating margin of 31%. Additionally, Dynatrace announced strategic collaborations with ServiceNow and Atlassian, enhancing its ecosystem and expanding its market reach.
Key financial highlights include a total revenue of $494 million, marking an 18% increase from the previous year, and a GAAP net income per share of $0.19. The company also saw significant growth in large contract values, with a 53% year-over-year increase in annual contract value from seven-figure deals. Furthermore, Dynatrace’s flexible subscription model now accounts for 70% of its ARR.
Looking ahead, Dynatrace has updated its fiscal year 2026 guidance, expecting continued growth in ARR and total revenue, with anticipated foreign exchange tailwinds. The company remains focused on leveraging its AI-driven platform to capitalize on the growing demand for observability solutions in the cloud and AI sectors.