Earnings Releases·Nov 3, 2026, 8:08 AM ET

Dynatrace — Second Quarter Fiscal 2027 Earnings Summary

**Financial Performance:** Total revenue grew 17% year-over-year to $580 million, while ARR increased 16% to $2.207 billion; GAAP operating margin expanded to 16% and Non-GAAP margin to 32%, with adjusted free cash flow margin reaching 7%.
**Guidance Changes:** Full-year ARR and total revenue guidance were raised to $2.393–$2.413 billion and $2.330–$2.340 billion respectively, though Non-GAAP operating margin, net income, and adjusted free cash flow guidance were lowered to reflect approximately 175 basis points of dilution from the Arize acquisition.
**Strategic M&A and Capital Returns:** Completed the acquisition of Arize on October 1, 2026, to integrate AI evaluation capabilities, while the Board authorized an incremental $1 billion share repurchase program, bringing total remaining buyback capacity to $1.3 billion.
**Product Momentum and Outlook:** Platform consumption grew over 20% year-over-year with AI cohorts consuming twice the rate of others, and management targets achieving a "Rule of 50" profile by fiscal 2029 despite expected foreign exchange headwinds of $20 million on ARR.