Dynatrace announced a strong start to its fiscal year 2026, reporting financial results for the first quarter ended June 30, 2025, that exceeded guidance across all metrics. Annual Recurring Revenue (ARR) reached $1,822 million, an 18% increase year-over-year, or 16% on a constant currency basis.
Total revenue for the quarter was $477 million, up 20% year-over-year, with subscription revenue also growing 20% to $458 million. The company achieved a non-GAAP operating margin of 30% and non-GAAP diluted EPS of $0.42, driven by a large number of seven-figure expansion deals and accelerating log management deployment.
For the full fiscal year 2026, Dynatrace updated its guidance, raising the midpoint for ARR to $1,988 million to $2,003 million, and total revenue to $1,970 million to $1,985 million. Non-GAAP EPS guidance was also increased to $1.58 to $1.61 per diluted share, reflecting continued confidence in its market position and execution.
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