Dynatrace: Strong Financial Performance and Positive Future Outlook Justify Buy Rating

Robert W. Baird analyst William Power has maintained their bullish stance on DT stock, giving a Buy rating on May 5.

William Power has given his Buy rating due to a combination of factors including Dynatrace’s strong financial performance and promising future guidance. The company reported impressive subscription revenue growth of 20% in constant currency for the fourth quarter and the fiscal year 2025, surpassing expectations. Additionally, the annual recurring revenue (ARR) increased by 17% year-over-year, demonstrating the company’s robust growth trajectory.
Moreover, Dynatrace’s initial guidance for fiscal year 2026 exceeded sell-side consensus estimates, indicating a positive outlook. The company projected subscription revenue growth of 15-16% year-over-year, alongside strong adjusted operating margins and free cash flow forecasts. Despite a slight decline in net revenue retention (NRR), the overall financial health and strategic positioning of Dynatrace support the Buy rating.

In another report released on May 5, Bank of America Securities also maintained a Buy rating on the stock with a $62.00 price target.