Dynatrace (DT)
NYSE:DT
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Dynatrace
(NYSE:DT)
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Rating:71Outperform
Price Target:
$46.00
▲(29.21% Upside)
Action:Reiterated
Date:05/14/26
The score is primarily driven by strong financial quality (high margins, strong free cash flow, low leverage) and supportive FY27 guidance with solid profitability targets. These positives are tempered by weak current price trend versus moving averages and a high P/E multiple with no dividend support.
Positive Factors
High and Stable Gross Margins
Sustained ~81–82% gross margins reflect a high‑value SaaS operating model and strong unit economics. Durable margin headroom supports reinvestment in R&D and go‑to‑market, underpins consistent operating cash conversion, and provides resilience across cloud and enterprise cycles.
Negative Factors
Recent Revenue Growth Deceleration
Slowing top‑line growth reduces the operating leverage potential of a high‑margin SaaS business. If revenue expansion stalls, margins and return metrics may face pressure and the company may need greater reinvestment or to shift GTM strategy to regain multi‑year growth momentum.
Read all positive and negative factors
Positive Factors
Negative Factors
High and Stable Gross Margins
Sustained ~81–82% gross margins reflect a high‑value SaaS operating model and strong unit economics. Durable margin headroom supports reinvestment in R&D and go‑to‑market, underpins consistent operating cash conversion, and provides resilience across cloud and enterprise cycles.
Read all positive factors
Dynatrace Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how revenue is distributed across different business units, highlighting which areas are driving growth and which may need strategic adjustments.
Shows how revenue is distributed across different business units, highlighting which areas are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyDynatrace (DT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.83B
Dividend YieldN/A
Average Volume (3M)6.83M
Price to Earnings (P/E)157.9
Beta (1Y)0.98
Revenue Growth18.82%
EPS Growth-66.60%
CountryUS
Employees4,700
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.54
Shares Outstanding291,475,740
10 Day Avg. Volume8,459,218
30 Day Avg. Volume6,827,955
Financial Highlights & Ratios
PEG Ratio-1.01
Price to Book (P/B)4.21
Price to Sales (P/S)5.45
P/FCF Ratio20.87
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue5.49
Enterprise Value/Gross Profit6.73
Enterprise Value/Ebitda35.30
Forecast
1Y Price Target
$44.57Price Target Upside25.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering28
EPS Forecast (FY)1.95
Revenue Forecast (FY)$2.33B
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, infrast...
How the Company Makes Money
Dynatrace primarily makes money by selling subscriptions to its software platform, with revenue recognized over the contract term. Its key revenue stream is recurring subscription revenue from enterprises that license access to Dynatrace’s observa...
Dynatrace Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call emphasized substantial progress: surpassing $2.0B ARR, consistent 16% ARR growth, high-growth consumption (logs >$100M and >100% YoY growth), strong revenue growth (+16-17%), healthy margins (non-GAAP operating margin ~29%), strong free cash flow and aggressive buybacks, and clear product and AI/agent-driven go-to-market momentum. Key near-term headwinds include a $28M GAAP restructuring charge, anticipated ~100 bps gross margin pressure from cloud hosting costs due to rising consumption, and timing/renewal variability related to a large DPS cohort that could affect the realization of FY27 net new ARR. Overall, positive execution and credible guidance for ARR acceleration were presented, with manageable operational and timing risks called out.Positive Updates
Surpassed $2 Billion ARR & Consistent ARR Growth
ARR ended fiscal 2026 at $2.05 billion, marking the company surpassing the $2B ARR milestone. Dynatrace delivered its fourth consecutive quarter of 16% year-over-year ARR growth and stabilized ARR growth at 16% for the year.
Negative Updates
Q4 GAAP Restructuring & Impairment Charges
Q4 GAAP operating income included $28 million of restructuring and impairment charges related to workforce reductions and office footprint rationalization, which reduced GAAP profitability for the quarter.
Read all updates
Q4-2026 Updates
Positive
Negative
Surpassed $2 Billion ARR & Consistent ARR Growth
ARR ended fiscal 2026 at $2.05 billion, marking the company surpassing the $2B ARR milestone. Dynatrace delivered its fourth consecutive quarter of 16% year-over-year ARR growth and stabilized ARR growth at 16% for the year.
Read all positive updates
Company Guidance
The company guided fiscal 2027 ARR to $2.38–$2.40 billion (15.5%–16.5% growth), implying full‑year net new ARR of $320–$340 million (up ~16%–23%) with net new modestly weighted to the first half; total revenue of $2.32–$2.34 billion and subscription revenue of $2.22–$2.24 billion (both +14%–15%); non‑GAAP operating margin of ~29.5% (including ~150 bps of OpEx leverage offset by a ~100 bp gross‑margin headwind from higher cloud hosting costs); non‑GAAP net income $584–$594 million and EPS $1.93–$1.95 on ~302–304 million shares; an effective cash tax rate of 18.5%; free cash flow margin of 26.5% and pretax free cash flow margin of 32%; SBC expected just under 14% of revenue (down ~100 bps); and Q1 revenue guidance of ~$540–$551 million with subscription revenue $523–$527 million, Q1 non‑GAAP operating margin 27.5%–28% and EPS $0.44–$0.45 (shares ~298–299M).Dynatrace Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
90
Very Positive
Cash Flow
88
Very Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.02B | 1.70B | 1.43B | 1.16B | 929.45M |
| Gross Profit | 1.65B | 1.38B | 1.16B | 935.64M | 756.57M |
| EBITDA | 287.97M | 227.54M | 183.34M | 147.42M | 138.18M |
| Net Income | 162.67M | 483.68M | 154.63M | 107.96M | 52.45M |
Balance Sheet | |||||
| Total Assets | 4.42B | 4.14B | 3.41B | 2.77B | 2.54B |
| Cash, Cash Equivalents and Short-Term Investments | 1.17B | 1.11B | 836.87M | 555.35M | 462.97M |
| Total Debt | 164.32M | 75.36M | 69.53M | 75.17M | 338.76M |
| Total Liabilities | 1.80B | 1.52B | 1.39B | 1.16B | 1.24B |
| Stockholders Equity | 2.61B | 2.62B | 2.02B | 1.60B | 1.30B |
Cash Flow | |||||
| Free Cash Flow | 527.24M | 433.31M | 351.65M | 333.35M | 233.22M |
| Operating Cash Flow | 559.42M | 459.42M | 378.11M | 354.88M | 250.92M |
| Investing Cash Flow | -15.69M | -69.31M | -193.05M | -21.54M | -30.89M |
| Financing Cash Flow | -471.66M | -151.63M | 50.66M | -232.34M | -80.66M |
Dynatrace Technical Analysis
Neutral
35.60
Price Trends
37.32
Positive
37.82
Positive
42.62
Negative
Market Momentum
0.84
Negative
51.81
Neutral
84.16
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DT, the sentiment is Neutral. The current price of 35.6 is below the 20-day moving average (MA) of 38.80, below the 50-day MA of 37.32, and below the 200-day MA of 42.62, indicating a neutral trend. The MACD of 0.84 indicates Negative momentum. The RSI at 51.81 is Neutral, neither overbought nor oversold. The STOCH value of 84.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DT.
Dynatrace Risk Analysis
Dynatrace disclosed 50 risk factors in its most recent earnings report. Dynatrace reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Dynatrace Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $11.63B | 49.66 | 12.92% | ― | 23.72% | ― | |
71 Outperform | $11.83B | 157.95 | 6.00% | ― | 18.82% | -66.60% | |
67 Neutral | $4.52B | -103.65 | -6.24% | ― | 25.81% | -2156.00% | |
66 Neutral | $5.63B | 224.68 | -9.44% | ― | 17.29% | 38.72% | |
64 Neutral | $11.69B | -6.87 | -21.33% | ― | 7.55% | -39.50% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.