Dynatrace, Inc.: Beat — EPS $0.54, Revenue $579.92M
Earnings BeatQ2 2027 · Pre-market
Did Dynatrace, Inc. (DT) beat earnings today?
Yes, Dynatrace, Inc. (DT) beat Wall Street analyst expectations for Q2 2027, reporting higher-than-expected EPS and higher-than-expected revenue.
Earnings Per Share+10.20% surprise
$0.54Actual
Expected: $0.49
vs. year ago +22.7%
Total Revenue+2.08% surprise
$579.92MActual
Expected: $568.12M
vs. year ago +17.0%
Released Nov 03 · 6:30 AM ET
Earning Report
| Metric | Q2 FY27 | Q2 FY26 | YoY Change % |
|---|---|---|---|
| Revenue | $579.92M | $493.85M | +17.0% |
| Revenue detail — reported lines | |||
| └─Subscription | $553.11M | $473.09M | +17.0% |
| └─Service | $26.81M | $20.76M | +29.1% |
| Net Income | $67.76M | $57.24M | +18.4% |
| GAAP Basic EPS | $0.24 | $0.19 | +26.3% |
| GAAP Diluted EPS | $0.23 | $0.19 | +21.1% |
| Non-GAAP Basic EPS | $0.56 | $0.44 | +27.3% |
| Non-GAAP Diluted EPS | $0.54 | $0.44 | +22.7% |
Financial Outlook / Guidance
| Metric | Q3 FY27 Outlook | FY27 Outlook | ||
|---|---|---|---|---|
| Guidance | Expected | Guidance | Expected | |
| ARR | — | — | $2,393M-$2,413M (+16.5%-17.5% YoY as reported; +17.5%-18.5% constant currency, prev. $2,359M-$2,379M) | — |
| Total revenue | $591M-$596M (+15%-16% YoY as reported; +15.5%-16.5% constant currency) | $594.84MIn-Line | $2,330M-$2,340M (+15.5%-16% YoY as reported; +16% constant currency, prev. $2,306M-$2,320M) | $2.33BIn-Line |
| Subscription revenue | $567M-$572M (+15%-16% YoY as reported; +15.5%-16.5% constant currency) | — | $2,227M-$2,237M (+15.5%-16% YoY as reported; +16% constant currency, prev. $2,206M-$2,220M) | — |
| Non-GAAP income from operations | $152M-$157M | — | $653M-$661M (prev. $682M-$690M) | — |
| Non-GAAP operating margin | 26% | — | 28%-28.25% (prev. 29.5%-29.75%) | — |
| Non-GAAP net income | $136M-$141M | — | $576M-$584M (prev. $581M-$591M) | — |
| Non-GAAP net income per diluted share | $0.44-$0.45 | $0.48Miss -7.29% | $1.88-$1.90 (prev. $1.97-$1.99) | $1.91Miss -1.05% |
| Diluted weighted average shares outstanding | 313M-314M | — | 306M-308M (prev. 295M-297M) | — |
| Adjusted free cash flow | — | — | $600M-$605M (prev. $610M-$615M) | — |
| Adjusted free cash flow margin | — | — | 26% (prev. 26.5%) | — |
Q3 FY27 Outlook
- ARR
- Guidance—Expected—
- Total revenue
- Guidance$591M-$596M(+15%-16% YoY as reported; +15.5%-16.5% constant currency)Expected$594.84MIn-Line
- Subscription revenue
- Guidance$567M-$572M(+15%-16% YoY as reported; +15.5%-16.5% constant currency)Expected—
- Non-GAAP income from operations
- Guidance$152M-$157MExpected—
- Non-GAAP operating margin
- Guidance26%Expected—
- Non-GAAP net income
- Guidance$136M-$141MExpected—
- Non-GAAP net income per diluted share
- Guidance$0.44-$0.45Expected$0.48Miss -7.29%
- Diluted weighted average shares outstanding
- Guidance313M-314MExpected—
- Adjusted free cash flow
- Guidance—Expected—
- Adjusted free cash flow margin
- Guidance—Expected—
FY27 Outlook
- ARR
- Guidance$2,393M-$2,413M(+16.5%-17.5% YoY as reported; +17.5%-18.5% constant currency, prev. $2,359M-$2,379M)Expected—
- Total revenue
- Guidance$2,330M-$2,340M(+15.5%-16% YoY as reported; +16% constant currency, prev. $2,306M-$2,320M)Expected$2.33BIn-Line
- Subscription revenue
- Guidance$2,227M-$2,237M(+15.5%-16% YoY as reported; +16% constant currency, prev. $2,206M-$2,220M)Expected—
- Non-GAAP income from operations
- Guidance$653M-$661M(prev. $682M-$690M)Expected—
- Non-GAAP operating margin
- Guidance28%-28.25%(prev. 29.5%-29.75%)Expected—
- Non-GAAP net income
- Guidance$576M-$584M(prev. $581M-$591M)Expected—
- Non-GAAP net income per diluted share
- Guidance$1.88-$1.90(prev. $1.97-$1.99)Expected$1.91Miss -1.05%
- Diluted weighted average shares outstanding
- Guidance306M-308M(prev. 295M-297M)Expected—
- Adjusted free cash flow
- Guidance$600M-$605M(prev. $610M-$615M)Expected—
- Adjusted free cash flow margin
- Guidance26%(prev. 26.5%)Expected—
Business Highlights
- ➤More than 1,100 customers leverage Dynatrace agents for autonomous operations.
- ➤Closed 14 deals exceeding $1M ACV, including a major U.S. bank.
- ➤Completed the Arize acquisition on October 1, 2026.
- ➤Arize adds AI evaluation and LLM monitoring capabilities to the Dynatrace platform.
- ➤Announced a strategic CrowdStrike partnership spanning cybersecurity and observability.
- ➤Named a Leader in the Forrester Wave: AIOps Platforms, Q4 2026.
- ➤Achieved FedRAMP Class D (High) Initial Implementation status.
- ➤Repurchased 5.2M shares during the quarter at a $47.38 average price.
- ➤Board authorized an incremental $1B common-stock repurchase program.
- ➤Will host Investor Day on February 16, 2027, alongside Perform in Las Vegas.
Management Commentary
Rick McConnell, Chief Executive Officer
“Our Q2 results reflect continued top-line growth and strong operational efficiency.”
Rick McConnell, Chief Executive Officer
“As organizations increasingly deploy AI agents into production, the need for enterprise-grade observability and governance has never been greater. By bringing Arize together with the Dynatrace platform, we are extending our end-to-end capabilities across the AI lifecycle, from development through production, giving customers greater control over model reliability, application performance, and business outcomes.”
Jim Benson, Chief Financial Officer
“Our robust cash generation enables us to fund our strategic growth priorities while returning substantial capital to shareholders.”
Jim Benson, Chief Financial Officer
“Expanding our share repurchase authorization by $1 billion underscores the strength of our balance sheet, our confidence in our long-term growth trajectory, and our commitment to thoughtful capital allocation.”