Q3 2026 Investor Presentation February 9, 2026 1 Legal Disclaimer This presentation consists of these slides and the associated remarks and comments, which are related and intended to be presented and understood together. Please refer to the appendix of these slides for definitions of certain terms. Cautionary Language Concerning Forward-Looking Statements This presentation includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including sta ...

Revenue Performance - Annual recurring revenue (ARR) reached $1,972 million as of December 31, 2025, reflecting a 20% year-over-year growth[93] - Total revenue for the three months ended December 31, 2025, was $515 million, representing an 18% year-over-year increase[93] - Subscription revenue amounted to $493 million for the same period, also showing an 18% growth year-over-year[93] - Total revenue for the three months ended December 31, 2025, was $515.5 million, an increase of $79.3 million or 18% compared to $436.2 million in the same period of 2024[126] - Subscription revenue increased by $76.2 million, or 18%, driven by existing customers expanding their use of the Dynatrace platform and new customer adoption[128] - Service revenue rose by $3.1 million, or 17%, primarily due to increased customer demand for product enablement and adoption services[129] - Total revenue for the nine months ended December 31, 2025, was $1,486.7 million, a 19% increase from $1,253.5 million in the same period of 2024[146] - Subscription revenue for the nine months ended December 31, 2025, increased by $225.4 million, or 19%, compared to the same period in 2024, due to existing customers expanding their use of the platform[147] Profitability and Expenses - Non-GAAP income from operations was $153 million for the three months ended December 31, 2025, compared to $130 million for the same period in 2024[96] - Gross profit for the three months ended December 31, 2025, was $419.6 million, reflecting a $66.0 million or 19% increase from $353.6 million in 2024[134] - Operating expenses totaled $346.9 million for the three months ended December 31, 2025, compared to $306.1 million in 2024[125] - Net income for the three months ended December 31, 2025, was $40.1 million, a decrease from $361.8 million in the same period of 2024[126] - Gross profit for the nine months ended December 31, 2025, was $1,215.9 million, an increase of $197.4 million, or 19%, compared to $1,018.4 million in 2024[154] - Net income for the nine months ended December 31, 2025, was $145.3 million, a decrease from $444.4 million in the same period of 2024[145] Cash Flow and Financing - Free cash flow for the three months ended December 31, 2025, was $27 million, down from $38 million in the same period of 2024[96] - Net cash provided by operating activities increased to $335.5 million for the nine months ended December 31, 2025, compared to $296.6 million for the same period in 2024, reflecting a $38.9 million increase driven by higher collections from revenue growth[176] - Net cash used in financing activities increased to $249.4 million for the nine months ended December 31, 2025, compared to $112.0 million for the same period in 2024, driven by increased stock repurchases[178] - The company repurchased 5.4 million shares for $255.0 million during the nine months ended December 31, 2025, compared to 2.7 million shares for $130.1 million in the same period of 2024[172] - Net cash used in investing activities decreased to $23.4 million for the nine months ended December 31, 2025, from $51.5 million in the same period of 2024, due to increased proceeds from sales and maturities of investments[177] Research and Development - The company plans to invest in research and development to enhance its AI-powered observability platform and expand its functionality[94] - Research and development expenses increased to $120.6 million, representing 23% of total operating expenses, up from $98.3 million in 2024[126] - Research and development expenses increased by $22.2 million, or 23%, for the three months ended December 31, 2025, primarily due to increased personnel costs and cloud-based hosting costs[138] Customer Strategy - Dynatrace aims to grow its customer base by focusing on the largest 15,000 global enterprise accounts, which typically have annual revenues exceeding $1 billion[94] - The company intends to strengthen relationships with existing customers by expanding the breadth of its platform capabilities[94] - Dynatrace is committed to leveraging its strategic partner ecosystem to enhance cloud-focused partnerships and participate in digital transformation projects[95] Tax and Other Financial Metrics - Income tax expense rose to $107.7 million for the nine months ended December 31, 2025, an increase of $384.3 million from a tax benefit of $276.7 million for the same period in 2024, largely due to a discrete tax benefit from an IP transfer[164] - Other income, net, was $7.3 million for the nine months ended December 31, 2025, compared to an expense of $6.1 million for the same period in 2024, primarily due to foreign currency gains and losses[163] - Total contractual commitments as of December 31, 2025, were $702.8 million, with $74.7 million due within the next 12 months[170] - The company had $399.0 million available under its Credit Facility as of December 31, 2025, with compliance to all applicable covenants[174] - The company expects future capital requirements to depend on growth rate, R&D spending, and market acceptance of products[171]

Financial Performance - Dynatrace reported a total ARR of $1,972 million, reflecting a year-over-year increase of 20%, or 16% on a constant currency basis[7] - Total revenue reached $515 million, marking an 18% increase, or 16% on a constant currency basis[7] - Subscription revenue was $493 million, also up 18%, or 16% on a constant currency basis[7] - Total revenue for the three months ended December 31, 2025, was $515,473,000, representing a 18.2% increase from $436,169,000 in the same period of 2024[35] - Subscription revenue reached $493,372,000 for the three months ended December 31, 2025, up 18.3% from $417,207,000 in the prior year[35] - Gross profit for the nine months ended December 31, 2025, was $1,215,862,000, compared to $1,018,420,000 for the same period in 2024, reflecting a 19.4% increase[35] - Operating income for the three months ended December 31, 2025, was $72,738,000, a 53.2% increase from $47,464,000 in the same quarter of 2024[35] - Net income for the three months ended December 31, 2025, was $40,055,000, a significant decrease from $361,752,000 in the same period of 2024 due to tax benefits in the prior year[35] - The company reported a basic net income per share of $0.13 for the three months ended December 31, 2025, down from $1.21 in the same quarter of 2024[35] - Non-GAAP net income for the three months ended December 31, 2025, was $134,666, up from $111,679 in 2024, indicating a year-over-year increase of 20.4%[45] - Non-GAAP gross profit for the nine months ended December 31, 2025, reached $1,251,049, compared to $1,059,999 in 2024, reflecting a growth of 18.1%[43] Operating Margins - GAAP operating margin improved to 14%, up from 11% in the previous year, while non-GAAP operating margin remained at 30%[11] - Non-GAAP operating margin remained stable at 30% for both the three months ended December 31, 2025, and 2024[43] Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2025, totaled $1,091,534,000, an increase from $1,017,039,000 as of March 31, 2025[39] - The company reported a net cash provided by operating activities of $33,780 for the three months ended December 31, 2025, down from $42,238 in 2024, a decrease of 20.3%[45] - Free cash flow for the three months ended December 31, 2025, was $27,234, down from $37,569 in 2024, showing a decline of 27.5%[45] - The company experienced a net cash used in financing activities of $150,365 for the three months ended December 31, 2025, compared to $27,465 in 2024, reflecting a significant increase in cash outflow[41] Shareholder Actions - Dynatrace announced a new $1 billion share repurchase program, following the completion of a $500 million buyback program[4] Guidance and Expectations - The company expects a foreign exchange tailwind of approximately $49 million on ARR and $37 million on revenue for fiscal 2026[13] - Guidance for fiscal 2026 ARR is updated to $2,053 - $2,061 million, reflecting an increase from prior guidance[15] Assets and Liabilities - Total assets as of December 31, 2025, were $4,100,660,000, slightly down from $4,139,678,000 as of March 31, 2025[39] - The company’s total liabilities decreased to $1,351,581,000 as of December 31, 2025, from $1,518,530,000 as of March 31, 2025[39] - Shareholders' equity increased to $2,749,079,000 as of December 31, 2025, compared to $2,621,148,000 as of March 31, 2025[39] New Initiatives - Dynatrace unveiled Dynatrace Intelligence, a new AI-powered operations system, and expanded cloud-native integrations across major platforms[7]

Core Insights - Dynatrace reported strong financial results for Q3 FY 2026, exceeding guidance across all metrics and raising its full-year guidance [1] - The company achieved a 16% growth in Annual Recurring Revenue (ARR) on a constant currency basis and announced a new $1 billion share repurchase program [1][2] Financial Highlights - GAAP net income per share was $0.13, while non-GAAP net income per share was $0.44 [1] - Total revenue reached $515 million, marking an 18% increase year-over-year, or 16% on a constant currency basis [1] - Subscription revenue was $493 million, also an 18% increase year-over-year, or 16% on a constant currency basis [1] - Total ARR stood at $1,972 million, reflecting a 20% increase year-over-year, or 16% on a constant currency basis [1] Business Highlights - Dynatrace surpassed $100 million in annualized consumption dollars for log management, its fastest-growing product category [1] - The company closed 12 deals exceeding $1 million in ARR during the quarter, with significant contributions from new logos [1] - Product innovations included next-generation Real User Monitoring capabilities and enhanced cloud-native integrations across major platforms [1] Share Repurchase Program - The company has completed its initial $500 million share repurchase program and authorized a new program for up to $1 billion [1] - In Q3 FY 2026, Dynatrace repurchased $160 million worth of shares, accelerating the pace of buybacks [1] Financial Outlook - For FY 2026, Dynatrace expects ARR to be between $2,053 million and $2,061 million, representing an 18.5% to 19% growth [2] - Total revenue guidance for FY 2026 is set between $2,005 million and $2,010 million, indicating an 18% to 18.5% growth [2] - The company anticipates a foreign exchange tailwind of approximately $49 million on ARR and $37 million on revenue for FY 2026 [2]

Wall Street analysts forecast that Dynatrace (DT) will report quarterly earnings of $0.41 per share in its upcoming release, pointing to a year-over-year increase of 10.8%. It is anticipated that revenues will amount to $505.93 million, exhibiting an increase of 16% compared to the year-ago quarter.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projec ...

We recently compiled a list of 10 High Growth Technology Stocks That Are Profitable. The next stock on our list of high growth stocks is Dynatrace, Inc. TheFly reported on January 21 that TD Cowen lowered its price target on DT to $55 from $65 and maintained a Buy rating. The firm expects the company to deliver results above expectations and increase guidance for constant-currency ARR, and also added that the second-half net new ARR outlook appears less risky than previously assumed. TD Cowen Expects Dyn ...

Dynatrace (DT) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power of a changin ...

LAS VEGAS--(BUSINESS WIRE)--At Perform, its flagship annual user conference, Dynatrace (NYSE: DT), the leading AI-powered observability platform, announced next-generation Real User Monitoring (RUM) capabilities that deliver unified insights across modern web and mobile applications. RUM has become essential to understanding how applications perform for real users. But as organizations shift to dynamic, cloud-native, and AI-driven architectures – including LLM-powered services – traditional RUM. ...

LAS VEGAS--(BUSINESS WIRE)--At Perform, its flagship annual user conference, Dynatrace (NYSE: DT), the leading AI-powered observability platform, announced a deeply integrated set of developer experience and agentic AI capabilities. These updates evolve observability from passive insight into an intelligent control layer that actively guides, optimizes, and protects software delivery in real time. Software delivery is undergoing a major shift as cloud-native architectures, AI-assisted development, and agent ...

LAS VEGAS--(BUSINESS WIRE)--At Perform, its flagship annual user conference, Dynatrace (NYSE: DT), the leading AI-powered observability platform, showcased how customers are using Dynatrace AI Observability to scale AI applications safely, reliably, and cost-effectively. Gartner® predicts that "40% of enterprise apps will be integrated with task-specific agents, up from less than 5% now†– making the shift from experimentation to production a business priority.1 Organizations need observability. ...