The company sustains structural efficiency with gross margins consistently exceeding 80%, reaching 80.9% in 2026Q4, even as operating margins remain constrained by strategic reinvestment between 9.6% and 14.8%.
| Sales/Revenue | 2.02B | 1.7B | 1.43B | 1.16B | 929.45M | 703.51M | 545.8M | 430.97M | 398.05M | 406.38M |
| Revenue Growth % | 18.82% | 18.75% | 23.48% | 24.65% | 32.12% | 28.89% | 26.65% | 8.27% | -2.05% | - |
| Cost of Goods Sold | 372.26M | 320.19M | 266.45M | 222.89M | 172.88M | 127.71M | 128.93M | 106.8M | 96.53M | 102.17M |
| COGS % of Revenue | 18.44% | 18.85% | 18.63% | 19.24% | 18.6% | 18.15% | 23.62% | 24.78% | 24.25% | 25.14% |
| Gross Profit | 1.65B | 1.38B | 1.16B | 935.64M | 756.57M | 575.8M | 416.87M | 324.17M | 301.51M | 304.2M |
| Gross Margin % | 81.56% | 81.15% | 81.37% | 80.76% | 81.4% | 81.85% | 76.38% | 75.22% | 75.75% | 74.86% |
| Gross Profit Growth % | 19.42% | 18.42% | 24.42% | 23.67% | 31.39% | 38.12% | 28.6% | 7.51% | -0.88% | - |
| Operating Expenses | 1.38B | 1.2B | 1.04B | 842.83M | 675.26M | 483.9M | 588.81M | 396.87M | 323.27M | 291.67M |
| OpEx % of Revenue | 68.48% | 70.59% | 72.4% | 72.75% | 72.65% | 68.78% | 107.88% | 92.09% | 81.21% | 71.77% |
| Selling, General & Admin | 907.9M | 800.95M | 708.64M | 598.05M | 488.74M | 337.71M | 428.16M | 270.66M | 209.46M | 179.2M |
| SG&A % of Revenue | 44.98% | 47.15% | 49.54% | 51.62% | 52.58% | 48% | 78.45% | 62.8% | 52.62% | 44.1% |
| Research & Development | 474.31M | 384.57M | 304.74M | 218.35M | 156.34M | 111.42M | 119.28M | 76.76M | 58.32M | 52.88M |
| R&D % of Revenue | 23.5% | 22.64% | 21.3% | 18.85% | 16.82% | 15.84% | 21.85% | 17.81% | 14.65% | 13.01% |
| Other Operating Expenses | 0 | 13.54M | 22.29M | 26.29M | 30.16M | 34.78M | 41.37M | 49.45M | 55.49M | 59.58M |
| Operating Income | 263.91M | 179.43M | 128.4M | 92.81M | 81.31M | 91.9M | -171.94M | -72.71M | -21.76M | 12.53M |
| Operating Margin % | 13.08% | 10.56% | 8.98% | 8.01% | 8.75% | 13.06% | -31.5% | -16.87% | -5.47% | 3.08% |
| Operating Income Growth % | 47.08% | 39.75% | 38.35% | 14.15% | -11.52% | 153.45% | -136.48% | -234.15% | -273.61% | - |
| EBITDA | 287.97M | 227.54M | 183.34M | 147.42M | 138.18M | 152.86M | -105.62M | 7.4M | 60.48M | 97.45M |
| EBITDA Margin % | 14.27% | 13.39% | 12.82% | 12.72% | 14.87% | 21.73% | -19.35% | 1.72% | 15.19% | 23.98% |
| EBITDA Growth % | 26.56% | 24.11% | 24.36% | 6.69% | -9.6% | 244.73% | -1526.5% | -87.76% | -37.94% | - |
| D&A (Non-Cash Add-back) | 24.06M | 48.1M | 54.94M | 54.61M | 56.88M | 60.96M | 66.32M | 80.11M | 82.24M | 84.92M |
| EBIT | 263.91M | 179.43M | 128.4M | 92.81M | 81.31M | 92.06M | -173.14M | -70.07M | -16.55M | 9.09M |
| Net Interest Income | 47.73M | 48.28M | 37.28M | -3.41M | -10.19M | -14.21M | -45.4M | -69.84M | -35.22M | -25.48M |
| Interest Income | 47.73M | 48.28M | 37.28M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 3.41M | 10.19M | 14.21M | 45.4M | 69.84M | 35.22M | 25.48M |
| Other Income/Expense | 35.85M | 44M | 26.52M | -2.84M | -9.65M | -14.04M | -46.59M | -67.2M | -30.02M | -28.93M |
| Pretax Income | 299.76M | 223.43M | 154.91M | 89.97M | 71.66M | 77.85M | -218.53M | -139.91M | -51.77M | -16.39M |
| Pretax Margin % | 14.85% | 13.15% | 10.83% | 7.77% | 7.71% | 11.07% | -40.04% | -32.46% | -13.01% | -4.03% |
| Income Tax | 137.09M | -260.25M | 283K | -17.99M | 19.21M | 2.14M | 195.28M | -23.72M | -61M | -17.19M |
| Effective Tax Rate % | 45.73% | -116.48% | 0.18% | -20% | 26.8% | 2.75% | -89.36% | 16.95% | 117.81% | 104.86% |
| Net Income | 162.67M | 483.68M | 154.63M | 107.96M | 52.45M | 75.71M | -413.82M | -116.19M | 9.22M | 796K |
| Net Margin % | 8.06% | 28.47% | 10.81% | 9.32% | 5.64% | 10.76% | -75.82% | -26.96% | 2.32% | 0.2% |
| Net Income Growth % | -66.37% | 212.8% | 43.23% | 105.83% | -30.72% | 118.3% | -256.14% | -1359.97% | 1058.54% | - |
| Net Income (Continuing) | 162.67M | 483.68M | 154.63M | 107.96M | 52.45M | 75.71M | -413.82M | -116.19M | 9.22M | 796K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.54 | 1.59 | 0.52 | 0.37 | 0.18 | 0.26 | -1.58 | -0.42 | 0.03 | 0.00 |
| EPS Growth % | -66.04% | 205.77% | 40.54% | 105.56% | -30.77% | 116.46% | -276.19% | -1353.73% | - | - |
| EPS (Basic) | 0.54 | 1.62 | 0.53 | 0.38 | 0.18 | 0.27 | -1.58 | -0.42 | 0.03 | 0.00 |
| Diluted Shares Outstanding | 298.93M | 303.6M | 299.28M | 291.62M | 290.9M | 286.51M | 264.93M | 275.54M | 275.54M | 280.41M |
| Basic Shares Outstanding | 297.54M | 298.38M | 294.05M | 287.7M | 284.16M | 280.47M | 264.93M | 275.54M | 275.54M | 280.41M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Competitive consolidation and pricing
As reported in recent financial statements, Dynatrace maintained a steady growth trajectory with 19.4% year-over-year revenue expansion in 2026Q4, suggesting that the company is successfully navigating the broader post-pandemic IT spending normalization while sustaining its position within the competitive enterprise observability and AIOps software market.
The consistent mid-to-high teens growth rate indicates that the company's subscription-based model remains resilient despite broader macroeconomic headwinds. Investors should monitor whether the transition toward consumption-based pricing for newer modules like Grail will introduce increased volatility into future top-line results.
Based on the provided income statement data, Dynatrace has consistently maintained gross margins above 80%, with a 80.9% reading in 2026Q4, reflecting a highly efficient delivery model that appears to effectively manage third-party cloud infrastructure costs despite the increasing complexity of its platform offerings.
This stability in gross margins suggests that the company possesses significant pricing power and operational discipline in its core subscription business. However, any future shift in the mix toward lower-margin professional services or increased cloud hosting fees could potentially pressure these levels over the long term.
According to the latest quarterly figures, operating margins have fluctuated between 9.6% and 14.8% over the last ten quarters, indicating that the company is prioritizing strategic reinvestment in R&D and market expansion over immediate, aggressive scaling of operating income relative to its gross profit growth.
The current operating margin of 10.5% in 2026Q4 suggests that management is actively absorbing costs associated with the Grail data lakehouse and security modules. This strategy appears to be a deliberate trade-off, potentially sacrificing short-term profitability to secure a more defensible competitive moat in the AIOps space.
Analysis of the income statement reveals that stock-based compensation remains a significant component of the cost structure, with quarterly expenses frequently exceeding $70 million, which warrants careful investigation into the quality of reported net income and the true economic cost of talent acquisition for the firm.
The discrepancy between GAAP net income and the underlying cash-generating capability of the business is exacerbated by these non-cash charges. Investors should scrutinize the delta between reported EPS and adjusted figures to determine how much of the bottom-line performance is driven by operational efficiency versus accounting adjustments.
While the company maintains a strong market position, the recent consolidation in the observability sector, exemplified by Cisco's acquisition of Splunk, poses a credible threat that may force Dynatrace into defensive pricing strategies, potentially leading to long-term margin compression and slower growth in the enterprise segment.
The emergence of larger, bundled competitors with vast distribution resources could challenge the company's best-of-breed positioning. If the market shifts toward integrated suites, Dynatrace may find it increasingly difficult to maintain its current premium pricing, which could negatively impact its future operating margin trajectory.
Quick answers to the most common questions about buying DT stock.
For fiscal year 2026, Dynatrace, Inc. (DT) reported total revenue of $2.02B. This represents a 396.7% increase compared to $406.4M in 2017.
Dynatrace, Inc. (DT) is profitable, generating $162.7M in net income for the fiscal year ending 2026 with a net profit margin of 8.1%.
Dynatrace, Inc. (DT) reported an operating income of $263.9M, resulting in an operating profit margin of 13.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Dynatrace, Inc. (DT) generated $1.65B in gross profit for the year, representing a gross profit margin of 81.6%. This demonstrates the company's core pricing power and production efficiency.