Dynatrace (NYSE:DT), the leading AI-powered observability platform, todayissued the following statement in response to the press release and related letter issued by Starboard Value LP ("Starboard").

Dynatrace's Board of Directors and management team are committed to acting in the best interests of the company and its shareholders. Dynatrace regularly engages with shareholders and values their input toward the common goal of enhancing value. To that end, members of Dynatrace have met with Starboard recently for introductory meetings and will continue to engage with them to better understand their views about our business and evaluate their ideas.

The Dynatrace Board and management team have a proven record of delivering balanced growth, profitability, and free cash flow reflecting strong execution against our strategic plan to drive sustainable, long-term value.

  • We delivered three consecutive quarters of 16% ARR growth through the third quarter of fiscal 2026 on a constant currency basis.
  • For the third quarter of fiscal 2026 compared to the same period four years prior, we doubled revenue to an annualized run rate of over $2 billion and we expanded non-GAAP operating margins by over 400 basis points.
  • Our operating margin profile is well above our peer group and software companies of similar size and scale. For the third quarter of fiscal 2026, we reported a non-GAAP operating margin of 29% and a pre-tax free cash flow margin of 30%, each on a trailing 12-month basis.

We continue to make strong progress against our strategic priorities. Dynatrace today benefits from a strong recurring subscription revenue stream, and we are confident that our go-to-market strategy will enable us to fully realize the value potential in our markets.

The Dynatrace platform combines broad and deep observability, continuous runtime application security, and advanced agentic AI operations to deliver answers and intelligent automation across IT operations, development, security, business, and executive teams. This unified approach enables organizations to optimize their rapidly evolving AI, cloud, and IT operations, accelerate secure software delivery, and improve digital performance.

As we invest in our long-term growth opportunities, we are cognizant of the importance of balance in our capital allocation priorities. We initiated a share repurchase program in May 2024 for $500 million and completed the program in February 2026. We announced a new $1 billion share repurchase program in February 2026, doubling the size of the prior authorization. Our Board and management team will continue to leverage Dynatrace's strong balance sheet and cash flow generation capacity to demonstrate conviction in the company's ability to deliver long-term value to its shareholders.

We will continue to review our strategic opportunities and capital allocation with a priority of driving sustainable returns. We look forward to continuing our dialogue