Dynatrace (DT) AI Stock Analysis

• Market Cap: $14.24B
• Dividend Yield: N/A
• Average Volume (3M): 3.06M
• Price to Earnings (P/E): 28.0
• Beta (1Y): 1.10
• Revenue Growth: 18.50%
• EPS Growth: 207.45%
• Country: US
• Employees: 4,700
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.44
• Shares Outstanding: 301,488,280
• 10 Day Avg. Volume: 4,107,734
• 30 Day Avg. Volume: 3,062,130
• PEG Ratio: 0.14
• Price to Book (P/B): 5.37
• Price to Sales (P/S): 8.28
• P/FCF Ratio: 32.47
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 7.30
• Enterprise Value/Gross Profit: 8.95
• Enterprise Value/Ebitda: 49.67
• 1Y Price Target: $61.71
• Price Target Upside: 32.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 1.61
• Revenue Forecast (FY): $1.98B

• Rating: 77 Outperform
• Price Target: $56.00 ▲(19.86% Upside)

Dynatrace's strong financial performance and positive earnings call results are the primary drivers of its overall score. The company's robust revenue growth, strategic partnerships, and increased platform adoption are significant strengths. However, the bearish technical indicators and moderate valuation slightly temper the overall score.

Positive Factors

Revenue Growth

Dynatrace's consistent revenue growth, driven by demand for observability and tool consolidation, strengthens its market position and future prospects.

Strategic Partnerships

The collaboration with ServiceNow enhances Dynatrace's capabilities in autonomous IT operations, expanding its competitive advantage and market reach.

Cash Flow Generation

Strong cash flow generation supports Dynatrace's ability to invest in growth opportunities and maintain financial flexibility, ensuring long-term stability.

Negative Factors

Macroeconomic Concerns

Uncertain macroeconomic conditions could impact Dynatrace's performance in key markets, posing risks to revenue and growth projections.

Net Retention Rate Stagnation

Stagnant net retention rates may indicate challenges in expanding existing customer accounts, potentially limiting revenue growth from current clients.

Geopolitical Risks

Geopolitical risks in EMEA could disrupt operations and affect revenue, necessitating strategic adjustments to mitigate potential adverse impacts.

Dynatrace Business Overview & Revenue Model

Company Description

Dynatrace, Inc. provides a software intelligence platform for dynamic multi-cloud environments. It operates Dynatrace, a software intelligence platform, which provides application and microservices monitoring, runtime application security, infrastructure monitoring, digital experience monitoring, business analytics, and cloud automation. Its platform allows its customers to modernize and automate IT operations, develop and release software, and enhance user experiences. The company also offers implementation, consulting, and training services. Dynatrace, Inc. markets its products through a combination of direct sales team and a network of partners, including resellers, system integrators, and managed service providers. It serves customers in various industries comprising banking, insurance, retail, manufacturing, travel, and software. The company operates in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. Dynatrace, Inc. was founded in 2005 and is headquartered in Waltham, Massachusetts.

How the Company Makes Money

Dynatrace generates revenue primarily through a subscription-based model, offering its software solutions as SaaS (Software as a Service) and on-premises licenses. The key revenue streams include recurring subscription fees from customers who utilize its monitoring and analytics services, as well as professional services related to implementation and support. Additionally, the company benefits from upselling and cross-selling opportunities as clients expand their use of Dynatrace's platform. Significant partnerships with major cloud providers and technology companies further enhance its market reach and can contribute to increased sales, while its focus on enterprise customers often results in larger contract values.

Dynatrace Financial Statement Overview

Summary

Dynatrace exhibits strong financial performance with robust revenue and profit growth, efficient cost management, and prudent financial leverage. The company maintains high gross profit margins and a low debt-to-equity ratio, indicating financial stability and profitability.

Income Statement

Dynatrace demonstrates strong revenue growth with a consistent increase in total revenue over the years. The company maintains high gross profit margins, indicative of efficient cost management. Net profit margins have improved significantly, showcasing enhanced profitability. EBIT and EBITDA margins are also healthy, reflecting strong operational performance. The positive revenue growth trajectory and robust profitability metrics position Dynatrace favorably in the competitive software industry.

Balance Sheet

The balance sheet of Dynatrace is characterized by a low debt-to-equity ratio, indicating prudent financial leverage and reduced risk. Return on equity has shown improvement, suggesting effective utilization of shareholder funds to generate profits. The equity ratio is stable, reflecting a strong capital structure. Overall, the balance sheet reflects financial stability and a conservative approach to debt management, which is advantageous for long-term growth.

Cash Flow

Dynatrace exhibits strong cash flow performance with consistent growth in free cash flow. The operating cash flow to net income ratio indicates efficient conversion of earnings into cash. The free cash flow to net income ratio is high, underscoring the company's ability to generate cash relative to its net income. The positive trajectory in cash flow metrics supports Dynatrace's capacity to fund operations and invest in growth opportunities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.85B	1.70B	1.43B	1.16B	929.45M	703.51M
Gross Profit	1.51B	1.38B	1.16B	935.64M	756.57M	575.80M
EBITDA	272.10M	227.54M	183.34M	147.42M	138.18M	153.02M
Net Income	506.25M	483.68M	154.63M	107.96M	52.45M	75.71M
Balance Sheet
Total Assets	4.08B	4.14B	3.41B	2.77B	2.54B	2.26B
Cash, Cash Equivalents and Short-Term Investments	1.31B	1.11B	836.87M	555.35M	462.97M	324.96M
Total Debt	86.82M	75.36M	69.53M	75.17M	338.76M	439.61M
Total Liabilities	1.30B	1.52B	1.39B	1.16B	1.24B	1.14B
Stockholders Equity	2.78B	2.62B	2.02B	1.60B	1.30B	1.11B
Cash Flow
Free Cash Flow	476.06M	433.31M	351.65M	333.35M	233.22M	206.36M
Operating Cash Flow	506.97M	459.42M	378.11M	354.88M	250.92M	220.44M
Investing Cash Flow	-29.20M	-69.31M	-193.05M	-21.54M	-30.89M	-13.88M
Financing Cash Flow	-166.14M	-151.63M	50.66M	-232.34M	-80.66M	-97.80M

Dynatrace Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 46.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DT, the sentiment is Negative. The current price of 46.72 is below the 20-day moving average (MA) of 48.91, below the 50-day MA of 48.91, and below the 200-day MA of 51.26, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 40.88 is Neutral, neither overbought nor oversold. The STOCH value of 20.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DT.

Dynatrace Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DT	77 Outperform	$14.24B	28.03	20.57%	―	18.50%	207.45%
DAY	71 Outperform	$10.94B	―	-5.71%	―	11.73%	-376.77%
GWRE	69 Neutral	$18.43B	272.66	4.99%	―	22.64%	―
ESTC	65 Neutral	$9.57B	―	-9.65%	―	17.42%	-228.98%
U	64 Neutral	$17.13B	―	-13.64%	―	-8.23%	48.57%
GTLB	63 Neutral	$7.60B	―	-0.63%	―	28.97%	98.96%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Dynatrace Corporate Events

Dynatrace Surpasses Earnings Expectations, Raises Guidance

Dynatrace, a leading AI-powered observability platform provider, specializes in transforming complex digital ecosystems into valuable business assets within the technology sector. The company has reported strong financial results for the second quarter of fiscal year 2026, surpassing its guidance across all key metrics and raising its full-year outlook.

Dynatrace Earnings Call: Strong Growth Amid Challenges

Dynatrace’s recent earnings call painted a picture of robust performance and strategic growth, with the company achieving significant milestones in the first half of the fiscal year. The sentiment was largely positive, driven by substantial growth in key areas such as Annual Recurring Revenue (ARR), subscription revenue, and log management. Strategic partnerships and increased adoption of the Dynatrace Platform Subscription (DPS) model further indicate promising long-term prospects. However, concerns about macroeconomic conditions and a stagnant net retention rate were also noted, suggesting potential challenges ahead. Overall, the positive aspects significantly outweigh the negatives, highlighting a strong position for Dynatrace moving forward.

Dynatrace Stockholders Approve Key Proposals at Annual Meeting

On August 20, 2025, Dynatrace, Inc. held its annual meeting of stockholders, where three key proposals were voted on. Stockholders elected three directors to the board, ratified Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending March 31, 2026, and approved the compensation of named executive officers on a non-binding advisory basis. These decisions are expected to influence the company’s governance and operational strategies moving forward.

The most recent analyst rating on (DT) stock is a Hold with a $53.00 price target. To see the full list of analyst forecasts on Dynatrace stock, see the DT Stock Forecast page.

Dynatrace Exceeds Expectations with Strong Q1 Results

Dynatrace is a leading company in the technology sector, specializing in AI-powered observability platforms that help businesses manage and optimize their digital ecosystems. The company is recognized for its innovative solutions that leverage artificial intelligence to provide insights and enhance operational efficiency.

Dynatrace Earnings Call Highlights Strong Growth and Cautious Guidance

Dynatrace’s recent earnings call reflected a positive sentiment, highlighting strong financial performance and significant growth in strategic areas such as large deals and log management. Despite these achievements, the company remains cautious in its guidance due to potential macroeconomic uncertainties.