Dynatrace (NYSE: DT) issued a statement acknowledging a shareholder letter from activist investor Starboard Value LP, according to a company press release.

The observability platform company said its board and management team met with Starboard representatives for introductory meetings and will continue engaging with the firm to evaluate their ideas about the business.

Dynatrace highlighted its financial performance, reporting three consecutive quarters of 16% annual recurring revenue growth through the third quarter of fiscal 2026 on a constant currency basis. The company said it doubled revenue to an annualized run rate of over $2 billion for the third quarter compared to the same period four years prior, while expanding non-GAAP operating margins by over 400 basis points.

For the third quarter of fiscal 2026, Dynatrace 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.

The company completed a $500 million share repurchase program that began in May 2024, finishing it in February 2026. Dynatrace announced a new $1 billion share repurchase program in February 2026, doubling the size of the prior authorization.

The statement comes as Dynatrace faces pressure from Starboard Value, though the company did not disclose specific details about the activist investor's proposals or concerns. The company said it remains committed to acting in shareholders' best interests and will continue reviewing strategic opportunities and capital allocation priorities.