EarningsQ1 2027 Earnings Report
MX:DT Q1 2027 EPS Results
Actual EPS$8.83
Consensus EPS$8.18
Beat/MissBeat by +$0.64
One Year Ago EPS$7.72
MX:DT Q1 2027 Revenue Results
Actual Revenue$10.20B
Expected Revenue$10.11B
Beat/MissBeat by +$86.64M
YoY Revenue Growth+16.17%
Earnings Announcement Details
QuarterQ1 2027
Date08/05/2026
TimeBefore Open
Conference CallWednesday, August 5, 2026
MX:DT Upcoming Earnings
Dynatrace's next earnings date is estimated for October 29, 2026, based on past reporting schedules.
Q1 2027 Earnings Call Audio
MX:DT Q1 2027 Earnings Call
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Q1 2027 Earnings Slide Deck
Q1 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a strong, broad-based quarter with multiple operational and financial beats: accelerating net new ARR, robust logs and consumption growth, record new-logo performance, solid free cash flow and increased shareholder returns. Management reiterated ARR acceleration goals and raised certain revenue and margin posture while remaining conservative on full-year ARR guidance. Key near-term risks include FX headwinds, renewal seasonality concentrated in the back half of the year, reliance on large deals causing timing volatility, and an upcoming CFO transition. Overall the positive momentum and clear AI/agent monetization pathways outweigh the timing and macro/operational risks.Company Guidance
Strong ARR Growth
Total ARR reached $2.14B, up 17% year-over-year. Q1 net new ARR was $85M (66% growth YoY; 41% organic growth excluding $13M from Bindplane). Trailing 12-month organic net new ARR growth accelerated to 17% (from 12% in Q4).
Record New-Logo Performance and Land Size Expansion
Record new-logo ARR growth of more than 160%; added 122 new logos in Q1. Average land size increased to nearly $285,000, and average ARR per customer is now well over $500,000.
Revenue and Profitability Beat
Total revenue $555M and subscription revenue $530M, both up 15% and 100 basis points above the high end of guidance. Non-GAAP operating margin was 29%, exceeding guidance by 100 basis points. Non-GAAP net income $140M; EPS $0.48, $0.03 above guidance.
Robust Consumption and Logs Momentum
Log management remains the fastest-growing product category, growing well above 100% and reaching nearly $200M in annualized consumption (up from $100M two quarters earlier). Consumption growth for customers observing AI is 1.5x that of non-AI cohorts.
AI & Agent Adoption Increasing
Over 1,000 customers now use Dynatrace to observe AI/LLM workloads (up from ~850 last quarter). More than 800 customers run operations autonomously with agentic capabilities (up from ~500 last quarter). Company estimates AI observability TAM > $10B by 2030, growing >50% annually.
Strong Free Cash Flow and Capital Returns
Generated $309M of adjusted free cash flow in Q1; trailing 12-month adjusted free cash flow $579M (28% of revenue; 32% pretax). Repurchased 7.1M shares for $275M in the quarter (up from $224M in Q4).
Strategic Wins and Customer Examples
Closed multiple large deals including an 8-figure ACV new logo in Latin America and several 6- to 7-figure ACV expansions, with customer outcomes such as halving onboarding time, cost savings and platform consolidation wins.
Upgraded Full-Year Revenue & Margin Positioning
Maintained ARR growth guidance of 15.5%–16.5% (constant currency) while raising midpoint revenue guidance slightly to 14.5%–15% growth and increasing the high end of non-GAAP operating margin guidance to 29.75%. Raised non-GAAP EPS outlook to $1.97–$1.99.
MX:DT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed