DT 8-K Filed 2026-08-05 Execution disclosure

Dynatrace repurchased $275M of stock in Q1 FY2027 at $38.88 average

Company spent $275 million to buy back 7.1M shares, demonstrating confidence in long-term growth trajectory

Shares repurchased7.1M
Avg price paid$38.88
MechanismNot specified

What the filing says

Dynatrace (NYSE: DT) repurchased $275 million of its common stock during the first quarter of fiscal 2027 ended June 30, 2026, buying back 7.1 million shares at an average price of $38.88 per share, according to the company's earnings release filed as an 8-K on August 5, 2026.

Chief Financial Officer Jim Benson highlighted the buyback as part of the company's capital allocation strategy, stating that "during the quarter, we also repurchased $275 million of Dynatrace stock, underscoring our confidence in our long-term growth trajectory and our commitment to delivering shareholder value." The repurchases were executed under an existing program, though the filing does not disclose the total authorization amount or remaining authorization available.

The buyback reduced diluted weighted-average shares outstanding from 304.2 million in Q1 FY2026 to 293.7 million in Q1 FY2027. The company's cash position at quarter-end was $1.058 billion, and operating cash flow for the quarter totaled $306.2 million. The filing does not specify the execution mechanism (Rule 10b-18, 10b5-1 plan, or other), though open-market purchases are typical for ongoing programs.

During the first quarter of fiscal 2027, Dynatrace spent $275 million to repurchase 7.1 million shares at an average price of $38.88 under that program. — Dynatrace, Inc. 8-K filing  ·  View on SEC EDGAR →

What this means

Dynatrace's $275 million buyback in Q1 FY2027 reduced the company's share count by 2.4% year-over-year (from 304.2M diluted shares to 293.7M), providing modest per-share accretion to earnings metrics absent organic growth. The buyback was funded from strong operating cash flow of $306 million in the quarter, with cash reserves remaining substantial at $1.1 billion. The filing frames the repurchase as a confidence signal tied to the company's 41% organic net new ARR growth and positive business momentum, though it does not disclose the total remaining authorization or the company's capital allocation policy regarding buyback limits relative to market cap or other thresholds.

Frequently asked questions

How many shares did Dynatrace repurchase and at what price?
Dynatrace repurchased 7.1 million shares at an average price of $38.88 per share, spending $275 million in total during Q1 FY2027 (ended June 30, 2026). This reduced the company's diluted share count by approximately 2.4% year-over-year.
What authorization amount does the company have remaining for future buybacks?
The filing does not disclose the total authorization amount or remaining authorization available under the buyback program. The document notes only that the repurchases were made 'under that program,' indicating an existing standing authorization, but provides no forward-looking details on program size or capacity.
How did Dynatrace fund this repurchase?
The company funded the $275 million buyback from operating cash flow. In Q1 FY2027, Dynatrace generated $306.2 million in net cash from operating activities and maintained $1.058 billion in cash and cash equivalents at quarter-end, indicating substantial liquidity to support the repurchase.
What is the execution mechanism—Rule 10b-18, ASR, or 10b5-1 plan?
The filing does not specify the execution mechanism. While open-market purchases under Rule 10b-18 are typical for ongoing buyback programs, Dynatrace does not disclose whether it uses 10b-18, a 10b5-1 trading plan, accelerated share repurchase, or another method in this earnings release.
Why is Dynatrace conducting buybacks?
According to CFO Jim Benson, the repurchases underscore the company's 'confidence in our long-term growth trajectory and our commitment to delivering shareholder value.' The company cited strong Q1 results, including 41% organic net new ARR growth and accelerating business momentum, as context for the capital return.
How does this impact Dynatrace's earnings per share?
The 7.1 million share reduction provides modest per-share accretion, all else equal. Non-GAAP diluted EPS was $0.48 for Q1 FY2027 (up from $0.42 in Q1 FY2026), though this growth was driven primarily by operational improvements; the buyback helped offset potential dilution from equity compensation.
execution software tech-sector rule-10b-18 capital-allocation
Source. This editorial summary is based on the SEC filing linked above. BuybackStocks aggregates and editorializes publicly available SEC EDGAR filings. Not investment advice. Past authorization announcements do not guarantee future repurchase activity or share price performance. See our full disclosures policy.