Filing Flows › Dynatrace (DT) › Q1 FY26
Dynatrace (DT) Q1 FY26 earnings results (first quarter fiscal 2026)
10-Q filed Aug 6, 2025
Dynatrace (DT) reported revenue of $477M for the first quarter fiscal 2026 (Q1 FY26), +20% from a year earlier and +7% from the quarter before. Operating margin was 13.1%, net earnings $48.0M (10.0% of revenue).
Dynatrace, Q1 FY26: revenue $477M (+20% year over year), operating margin 13.1%, net earnings $48.0M, operating cash flow $270M. The chart follows the revenue to costs, profit and cash.
| Q1 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $477M | +7% | +20% |
| Gross profit | $392M | +9% | +21% |
| Operating profit | $62.3M | +45% | +48% |
| Net earnings | $48.0M | +22% | +24% |
| Operating cash flow | $270M | +66% | +17% |
| Free cash flow | $262M | — | — |
What changed
Revenue was $477.3M in Q1 FY26, up 20% year over year and up 7% from the previous quarter. Subscription was the largest line at 96% of revenue. Subscription added $75.9M year over year (up 20%), 97% of the total change.
Gross margin was 82.1%, up 0.9 points from a year earlier. Operating profit was $62.3M, a 13.1% margin (up 2.5 points year over year). Of the extra revenue versus a year earlier, 26% reached operating profit, above the 11% margin then. Operating expenses grew 17% against revenue growth of 20%. The fastest-growing cost line was General & admin (+25%). Net earnings were $48.0M, up 24% year over year. The effective tax rate was 41.1%. Non-operating items added $19.1M, 23% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $269.7M (up 17% year over year), 562% of net earnings. Non-cash charges added back $6.5M of depreciation and amortization and $71.9M of share-based compensation. Working capital and other items added $143.3M. After purchase of property and equipment ($7.5M) and capitalized software additions ($194K), free cash flow as the company reports it was $262.0M.
Questions
What was Dynatrace's revenue in the first quarter fiscal 2026?
Dynatrace (DT) reported revenue of $477M for the first quarter fiscal 2026 (Q1 FY26), +20% from a year earlier and +7% from the quarter before.
Was Dynatrace profitable in the first quarter fiscal 2026?
Operating profit was $62.3M (13.1% of revenue) and net earnings $48.0M.
Source: Dynatrace 10-Q on SEC EDGAR.