Dynatrace Inc. reported its financial results for the fourth quarter and full fiscal year 2025, ending March 31, 2025. The company exceeded its previous guidance across all key FY25 metrics, driven by strong consumption growth of its AI-powered observability platform. Dynatrace achieved a GAAP operating margin of 11% and a non-GAAP operating margin of 29% for the fiscal year. Notably, subscription revenue grew by 20% year-over-year on a constant currency basis. The company highlighted its go-to-market traction, closing 15 deals with an annual contract value exceeding $1 million in the quarter, with 14 of these deals involving partner collaboration. Over 40% of Dynatrace's customer base and more than 60% of its annual recurring revenue $(ARR)$ are now leveraging its Dynatrace Platform Subscription (DPS) licensing models, which continue to show significant traction. For fiscal year 2026, Dynatrace provided guidance, expecting ARR to reach between $1.975 billion and $1.990 billion, representing a 14% to 15% growth compared to fiscal year 2025. The company anticipates a total foreign exchange tailwind of approximately $20 million on ARR and $17 million on revenue for fiscal 2026.
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