Revenue grew from $399.2M to $579.9M over the period with gross margin holding above 80% and operating margin improving from 10.5% to 16.5%, though quarterly volatility and a 10.5% dip in Q4 2026 suggest margin gains remain unevenly realized.
Dynatrace, Inc. (DT) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 |
|---|
| Sales/Revenue | 2.18B | 2.02B | 1.7B | 1.43B | 1.16B | 929.45M | 703.51M | 545.8M | 430.97M | 398.05M | 406.38M |
| Revenue Growth % | 17.77% | 18.82% | 18.75% | 23.48% | 24.65% | 32.12% | 28.89% | 26.65% | 8.27% | -2.05% | - |
| Cost of Goods Sold | 413.46M | 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 | 1.77B | 1.65B | 1.38B | 1.16B | 935.64M | 756.57M | 575.8M | 416.87M | 324.17M | 301.51M | 304.2M |
| Gross Margin % | 81.05% | 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 | 1.47B | 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 | 952.55M | 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 | 519.35M | 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 | 565K | 0 | 13.54M | 22.29M | 26.29M | 30.16M | 34.78M | 41.37M | 49.45M | 55.49M | 59.58M |
| Operating Income | 295.71M | 263.91M | 179.43M | 128.4M | 92.81M | 81.31M | 91.9M | -171.94M | -72.71M | -21.76M | 12.53M |
| Operating Margin % | 13.55% | 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 | 323.21M | 287.97M | 227.54M | 183.34M | 147.42M | 138.18M | 152.86M | -105.62M | 7.4M | 60.48M | 97.45M |
| EBITDA Margin % | 14.81% | 14.27% | 13.39% | 12.82% | 12.72% | 14.87% | 21.73% | -19.35% | 1.72% | 15.19% | 23.98% |
| EBITDA Growth % | 25.29% | 26.56% | 24.11% | 24.36% | 6.69% | -9.6% | 244.73% | -1526.5% | -87.76% | -37.94% | - |
| D&A (Non-Cash Add-back) | 27.5M | 24.06M | 48.1M | 54.94M | 54.61M | 56.88M | 60.96M | 66.32M | 80.11M | 82.24M | 84.92M |
| EBIT | 300.39M | 299.76M | 223.43M | 154.91M | 93.38M | 81.85M | 92.06M | -173.14M | -70.07M | -16.55M | 9.09M |
| Net Interest Income | 33.99M | 47.73M | 48.28M | 37.28M | -3.41M | -10.19M | -14.21M | -45.4M | -69.84M | -35.22M | -25.48M |
| Interest Income | 33.99M | 47.73M | 48.28M | 37.28M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 3.41M | 10.19M | 14.21M | 45.4M | 69.84M | 35.22M | 25.48M |
| Other Income/Expense | 23.32M | 35.85M | 44M | 26.52M | -2.84M | -9.65M | -14.04M | -46.59M | -67.2M | -30.02M | -28.93M |
| Pretax Income | 319.04M | 299.76M | 223.43M | 154.91M | 89.97M | 71.66M | 77.85M | -218.53M | -139.91M | -51.77M | -16.39M |
| Pretax Margin % | 14.62% | 14.85% | 13.15% | 10.83% | 7.77% | 7.71% | 11.07% | -40.04% | -32.46% | -13.01% | -4.03% |
| Income Tax | 157.15M | 137.09M | -260.25M | 283K | -17.99M | 19.21M | 2.14M | 195.28M | -23.72M | -61M | -17.19M |
| Effective Tax Rate % | 49.26% | 45.73% | -116.48% | 0.18% | -20% | 26.8% | 2.75% | -89.36% | 16.95% | 117.81% | 104.86% |
| Net Income | 161.89M | 162.67M | 483.68M | 154.63M | 107.96M | 52.45M | 75.71M | -413.82M | -116.19M | 9.22M | 796K |
| Net Margin % | 7.42% | 8.06% | 28.47% | 10.81% | 9.32% | 5.64% | 10.76% | -75.82% | -26.96% | 2.32% | 0.2% |
| Net Income Growth % | -68.02% | -66.37% | 212.8% | 43.23% | 105.83% | -30.72% | 118.3% | -256.14% | -1359.97% | 1058.54% | - |
| Net Income (Continuing) | 161.89M | 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 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.54 | 0.54 | 1.59 | 0.52 | 0.37 | 0.18 | 0.26 | -1.58 | -0.42 | 0.03 | 0.00 |
| EPS Growth % | -67.77% | -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 | 301.67M | 298.93M | 303.6M | 299.28M | 291.62M | 290.9M | 286.51M | 264.93M | 275.54M | 275.54M | 280.41M |
| Basic Shares Outstanding | 288.02M | 297.54M | 298.38M | 294.05M | 287.7M | 284.16M | 280.47M | 264.93M | 275.54M | 275.54M | 280.41M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Sector valuation and multiple compression
Metrics are mathematically derived from official filings.
Top-Line Growth Holding Near Twenty Percent
Based on reported quarterly figures, Dynatrace's revenue rose from $399.2M in Q1 2025 to $579.9M in Q2 2027, with year-over-year growth running roughly 16% to 20% across recent periods, suggesting a durable but gradually moderating expansion rate.
The 17.4% year-over-year growth in the latest quarter, slightly below the 19-20% range seen through 2025 and early 2026, suggests growth is stable rather than accelerating. Management commentary on 41% organic net new ARR growth, if sustained, would point to top-line momentum that may outpace the reported revenue line in coming quarters. Investors should monitor whether ARR conversion continues to support growth in the mid-to-high teens.
Gross Margin Stable Above Eighty Percent
As reported in the income statement, gross margin has held between 80.6% and 82.1% across the ten quarters shown, indicating consistent pricing power and efficient delivery economics relative to a software-driven cost base.
The narrow band of gross margin variation suggests cloud infrastructure costs are being managed effectively and that subscription pricing absorbs hosting cost fluctuations. The slight downward drift in the most recent quarters may reflect mix shift toward newer modules or higher infrastructure intensity, which warrants monitoring. Sustained gross margins above 80% would support the thesis that the platform retains pricing power in a competitive observability market.
Operating Margin Expansion Lags Revenue Scale
Based on reported figures, operating margin improved from 10.5% in Q1 2025 to 16.5% in Q2 2027, though this expansion has been uneven, with a dip to 10.5% in Q4 2026 indicating that operating leverage is not yet consistently realized.
The operating margin trajectory implies that operating income is scaling in line with, and at times faster than, revenue, particularly in the 2027 quarters. SG&A remains the largest operating expense at roughly 40% of revenue, which suggests that go-to-market spending is the primary lever for future leverage. Continued margin expansion would depend on sales efficiency gains rather than gross margin improvement alone.
Net Income Volatility Obscures Underlying Earnings
Reported net income swings sharply across periods, including a 2025 Q3 figure of $361.8M against an operating income of $47.5M, which appears to reflect non-operating or discrete tax items rather than core operations and warrants further investigation.
The gap between operating income and net income in several quarters suggests material non-operating items, potentially including tax benefits or investment gains, that distort reported EPS. Net margin volatility from 3.3% to 82.9% makes period-to-period comparisons unreliable without adjustment. Investors should rely on operating income and free cash flow as cleaner indicators of earnings power.
Margin Ceiling and Growth Deceleration Risks
The strongest challenge to the narrative is that operating margins, at 16.5% in the latest quarter, remain well below the levels implied by high gross margins, suggesting reinvestment demands could cap profitability even as revenue grows.
Stock-based compensation of roughly $70M to $78M per quarter represents a meaningful share of operating costs, and excluding it would flatter margins, while including it highlights the cost of talent retention. The latest quarter's growth of 17.4% is already below the prior year's pace, and if ARR growth does not translate into revenue acceleration, the valuation premium may compress. Peer data showing Datadog at a 582x P/E underscores that multiple risk is material, while Dynatrace's own earnings base is small relative to its valuation expectations.