Dynatrace (DT) AI Stock Analysis

• Market Cap: $15.24B
• Dividend Yield: N/A
• Average Volume (3M): 3.32M
• Price to Earnings (P/E): 30.9
• Beta (1Y): 1.10
• Revenue Growth: 18.70%
• EPS Growth: 214.47%
• Country: US
• Employees: 4,700
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): 0.42
• Shares Outstanding: 301,506,260
• 10 Day Avg. Volume: 3,086,904
• 30 Day Avg. Volume: 3,317,789
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 8.74
• Enterprise Value/Gross Profit: 10.74
• Enterprise Value/Ebitda: 64.64
• 1Y Price Target: $64.00
• Price Target Upside: 27.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21

• Rating: 77 Outperform
• Price Target: $58.00 ▲(15.45% Upside)

Dynatrace's strong financial performance and positive earnings call are the most significant factors contributing to its score. Technical indicators suggest caution due to potential resistance and overbought conditions. The high valuation relative to peers is a concern, but the company's strategic advancements and robust growth outlook provide a counterbalance.

Positive Factors

Product Consumption

Logs and DPS remain key drivers, with consumption growing nicely, reflected in the NRR uptick to 111%.

Revenue Growth

Dynatrace reported solid first-quarter results that outperformed consensus on all key metrics.

Strategic Deals

Dynatrace closed 12 seven-figure deals, and its strategic pipeline is up 50% year-over-year, with the $1 million+ deal pipeline more than doubling.

Negative Factors

Customer Acquisition

New customer growth was light, with the company adding 103 new logos, below 162 a year ago.

Go-to-Market Focus

New logos have decreased, partly due to the go-to-market focus on expansions, indicating an area for improvement.

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 presents a robust financial profile with strong revenue growth, high profitability margins, and a solid balance sheet with low leverage. Effective cash flow management further strengthens its financial stability, positioning it well for future growth and investment opportunities. However, there is room for improvement in operational efficiency.

Income Statement

Dynatrace has demonstrated strong revenue growth with a consistent upward trajectory, achieving a TTM revenue growth rate of 4.6%. The company maintains robust profitability with a gross profit margin of 81.2% and a net profit margin of 28.5%, indicating efficient cost management and strong pricing power. However, the EBIT margin of 9.2% suggests room for improvement in operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.03, indicating minimal leverage and financial risk. The return on equity (ROE) of 22.4% is impressive, showcasing effective use of equity to generate profits. The equity ratio of 66.1% highlights a strong capital structure, although the company could further optimize asset utilization.

Cash Flow

Dynatrace exhibits healthy cash flow metrics with a free cash flow growth rate of 8% in the TTM period. The operating cash flow to net income ratio of 0.33 and a free cash flow to net income ratio of 0.94 indicate strong cash generation relative to earnings. The company effectively converts its earnings into cash, supporting its operational and strategic initiatives.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.78B	1.70B	1.43B	1.16B	929.45M	703.51M
Gross Profit	1.45B	1.38B	1.16B	935.64M	756.57M	575.80M
EBITDA	240.33M	227.54M	183.34M	147.42M	138.18M	153.02M
Net Income	493.02M	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	1.35B	1.11B	836.87M	555.35M	462.97M	324.96M
Total Debt	87.75M	75.36M	69.53M	75.17M	338.76M	439.61M
Total Liabilities	1.38B	1.52B	1.39B	1.16B	1.24B	1.14B
Stockholders Equity	2.70B	2.62B	2.02B	1.60B	1.30B	1.11B
Cash Flow
Free Cash Flow	468.37M	433.31M	351.65M	333.35M	233.22M	206.36M
Operating Cash Flow	498.60M	459.42M	378.11M	354.88M	250.92M	220.44M
Investing Cash Flow	-42.17M	-69.31M	-193.05M	-21.54M	-30.89M	-13.88M
Financing Cash Flow	-152.67M	-151.63M	50.66M	-232.34M	-80.66M	-97.80M

Dynatrace Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 50.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 50.24 is above the 20-day moving average (MA) of 48.68, below the 50-day MA of 51.73, and below the 200-day MA of 52.58, indicating a neutral trend. The MACD of -0.29 indicates Negative momentum. The RSI at 51.11 is Neutral, neither overbought nor oversold. The STOCH value of 72.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DT.

Dynatrace Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DT	77 Outperform	$15.24B	30.92	20.69%	―	18.70%	214.47%
DAY	76 Outperform	$10.97B	229.05	1.89%	―	13.46%	2.06%
GWRE	69 Neutral	$18.31B	556.75	2.61%	―	18.61%	―
ESTC	68 Neutral	$9.04B	192.75	-9.65%	―	17.42%	-228.98%
GTLB	68 Neutral	$7.88B	470.51	2.53%	―	29.31%	―
U	63 Neutral	$16.65B	―	-13.62%	―	-13.74%	48.10%
Sector *	61 Neutral	$35.09B	8.26	-10.57%	1.90%	8.56%	-9.51%

Dynatrace Corporate Events

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.

Dynatrace Adopts Majority Voting for Director Elections

On July 5, 2025, Dynatrace, Inc.’s Board of Directors approved the Fourth Amended and Restated Bylaws, introducing a majority voting standard for uncontested director elections. This change requires a nominee to receive more votes for than against to be elected, while contested elections will still use a plurality voting standard. If an incumbent director is not re-elected, they must tender their resignation, with the Board deciding on the next steps based on the Nominating and Corporate Governance Committee’s recommendation.