Dynatrace (DT) AI Stock Analysis

• Market Cap: $16.19B
• Dividend Yield: N/A
• Average Volume (3M): 2.52M
• Price to Earnings (P/E): 33.6
• Beta (1Y): 1.16
• Revenue Growth: 18.75%
• EPS Growth: 208.06%
• Country: US
• Employees: 4,700
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): 0.33
• Shares Outstanding: 301,756,530
• 10 Day Avg. Volume: 2,282,501
• 30 Day Avg. Volume: 2,517,039
• PEG Ratio: N/A
• Price to Book (P/B): 6.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 36.29
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 2.31
• Enterprise Value/Gross Profit: 10.73
• Enterprise Value/Ebitda: 16.75
• 1Y Price Target: $63.52
• Price Target Upside: 17.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 24

• Rating: 74 Outperform
• Price Target: $59.00 ▲(8.82%Upside)

Dynatrace's overall stock score is driven by its strong financial performance and positive earnings call outcomes. While the technical indicators are neutral, the company's high P/E ratio suggests it may be overvalued. Macroeconomic uncertainties and a slight decline in net retention rate are risks to watch, but the company's strategic focus on AI Ops and observability positions it well for future growth.

Positive Factors

Channel Strategy

Dynatrace's channel investments are considered best-in-class with clearly defined business objectives and strong co-branding efforts.

Financial Performance

Dynatrace reported strong financial results with revenue and profitability exceeding expectations, indicating a solid performance in the recent quarter.

Observability Demand

Strong demand for Observability and bullish DPS present significant opportunities for Dynatrace compared to competitors like Splunk.

Negative Factors

Market Risks

Risks include competition, macro impacts, new product adoption, and Fx exposure.

Product Competition

Competition from other firms in the observability space presents a significant risk to Dynatrace's market position.

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 makes money primarily through a subscription-based revenue model. Customers pay for access to its software intelligence platform, which is offered as a SaaS (Software as a Service) solution. The company generates revenue by charging fees based on the number of hosts or the amount of data monitored, allowing for scalability and flexibility in pricing. Key revenue streams include sales of its application performance management and infrastructure monitoring solutions, as well as related professional services. Partnerships with major cloud providers like Amazon Web Services, Microsoft Azure, and Google Cloud also play a significant role in expanding Dynatrace's market reach and driving revenue growth. Additionally, the company's focus on AI and automation tools helps differentiate its offerings and attract a diverse range of enterprise customers seeking to optimize their digital transformation initiatives.

Dynatrace Financial Statement Overview

Summary

Dynatrace exhibits strong revenue and profit growth, with robust profit margins and efficient cash flow management. The low leverage enhances financial stability, while the impressive return on equity and cash conversion ratios highlight effective management practices.

Income Statement

Dynatrace has demonstrated strong revenue growth with a 18.73% increase from the previous year, indicative of its competitive position in the software application industry. The gross profit margin is robust at 81.15%, reflecting efficient cost management. Net profit margin has improved significantly to 28.47%, showcasing enhanced profitability. The EBIT margin of 10.56% and EBITDA margin of 10.56% indicate solid operational performance.

Balance Sheet

The company's balance sheet is stable with a strong equity base, evidenced by an equity ratio of 63.34%. The debt-to-equity ratio is low at 0.03, indicating minimal leverage and associated financial risk. Return on equity stands at 18.45%, suggesting effective utilization of equity to generate profits. Overall, the balance sheet reflects financial stability and low risk.

Cash Flow

Dynatrace's cash flow performance is impressive with an operating cash flow to net income ratio of 0.95, indicating efficient cash generation relative to net income. The free cash flow has grown by 23.19%, highlighting strong cash flow management. The free cash flow to net income ratio of 0.90 suggests the company effectively converts its earnings into free cash flow.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.70B	1.43B	1.16B	929.45M	703.51M
Gross Profit	1.38B	1.16B	935.64M	756.57M	575.80M
EBITDA	179.43M	183.34M	147.42M	138.18M	153.02M
Net Income	483.68M	154.63M	107.96M	52.45M	75.71M
Balance Sheet
Total Assets	4.14B	3.41B	2.77B	2.54B	2.26B
Cash, Cash Equivalents and Short-Term Investments	1.11B	836.87M	555.35M	462.97M	324.96M
Total Debt	75.36M	69.53M	75.17M	338.76M	439.61M
Total Liabilities	1.52B	1.39B	1.16B	1.24B	1.14B
Stockholders Equity	2.62B	2.02B	1.60B	1.30B	1.11B
Cash Flow
Free Cash Flow	433.31M	351.65M	333.35M	233.22M	206.36M
Operating Cash Flow	459.42M	378.11M	354.88M	250.92M	220.44M
Investing Cash Flow	-69.31M	-193.05M	-21.54M	-30.89M	-13.88M
Financing Cash Flow	-151.63M	50.66M	-232.34M	-80.66M	-97.80M

Dynatrace Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 54.22 is above the 20-day moving average (MA) of 53.99, above the 50-day MA of 54.01, and above the 200-day MA of 53.18, indicating a bullish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 53.18 is Neutral, neither overbought nor oversold. The STOCH value of 71.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DT.

Dynatrace Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOCU	75 Outperform	$16.45B	15.38	70.20%	―	7.85%	935.80%
DT	74 Outperform	$16.19B	33.63	20.86%	―	18.75%	208.06%
BSY	74 Outperform	$17.75B	74.38	25.20%	0.44%	10.71%	-27.64%
GWRE	70 Outperform	$18.84B	568.13	2.61%	―	18.61%	―
MNDY	69 Neutral	$14.78B	295.34	5.39%	―	32.25%	156.94%
U	68 Neutral	$13.89B	―	-14.15%	―	-16.74%	49.75%
Sector *	63 Neutral	$34.70B	4.89	-11.39%	1.66%	5.53%	-19.00%

Dynatrace Corporate Events

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.

The most recent analyst rating on (DT) stock is a Buy with a $62.00 price target. To see the full list of analyst forecasts on Dynatrace stock, see the DT Stock Forecast page.