Shares of Dynatrace Inc. (NYSE:DT) climbed 3.1% in premarket trading Wednesday after the company reported stronger-than-expected results for the first quarter of fiscal 2026 and raised its outlook for the full year. The performance was fueled by robust expansion deals and increased momentum in log management adoption.
Adjusted earnings per share came in at $0.42, topping the $0.38 consensus estimate by $0.04. Revenue reached $477.3 million, surpassing analyst expectations of $466.99 million and marking a 20% year-over-year increase—or 19% in constant currency terms.
“We delivered a strong start to the fiscal year, exceeding guidance across all our metrics, driven by a large number of seven-figure expansion deals and accelerating log management deployment,” said Rick McConnell, Chief Executive Officer of Dynatrace.
Subscription revenue, the company’s primary revenue stream, rose 20% to $457.5 million (or 19% in constant currency). Total annual recurring revenue (ARR) increased 18% year-over-year to $1.82 billion, or 16% on a constant currency basis.
Dynatrace reported a GAAP operating margin of 13%, while non-GAAP operating margin improved to 30%, reflecting stronger profitability compared to the same period a year ago.
Based on the solid start to the year, the company raised its full-year fiscal 2026 revenue forecast to between $1.97 billion and $1.985 billion, up from the previous range of $1.95 billion to $1.965 billion. It also raised its adjusted earnings guidance to $1.58–$1.61 per share, up slightly from the earlier range of $1.56–$1.59.
For the second quarter, Dynatrace projects revenue between $484 million and $489 million—representing constant currency growth of 15–16%—with adjusted EPS expected to fall between $0.40 and $0.41.
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