Dynatrace vykázala za 1. čtvrtletí 2027 tržby 554,5 mil. USD a zisk na akcii podle non-GAAP 0,48 USD, nad odhadem o 0,03 USD na akcii. Zároveň zvýšila výhled na 2. čtvrtletí na tržby až 570 mil. USD i celoroční non-GAAP provozní marži na 29,75 %.
Software company Dynatrace, Inc. (DT) up 22% in 2026 thanks to institutional inflows.
In this article:DT
+3.72%
DT offers an AI-enabled technology platform that monitors enterprise cloud environments across geographical regions to optimize application performance and security. The company’s first-quarter 2027 report showed $2.14 billion in annual recurring revenue (a 17% year-over-year gain), total revenue of $554.5 million (a 15% jump), non-GAAP net income of $0.48 per share (exceeding guidance of $0.03 per share), and offered second-quarter revenue and full-year non-GAAP operating margin guidance of up to $570 million and 29.75%, respectively.
It’s no wonder DT shares are up 22% this year – and they could rise more. MoneyFlows data shows how Big Money investors are once again betting heavily on the forward picture of the stock.
Institutions Back for Dynatrace Institutional volumes reveal plenty. So far in 2026, DT has enjoyed strong investor demand, which we believe to be institutional support.
Each green bar signals unusually large volumes in DT shares. They reflect our proprietary inflow signal, pushing the stock higher:
Institutional inflows are again boosting DT shares, with inflows beginning in June helping send shares up 22% so far in 2026. Source: www.moneyflows.com Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Dynatrace.
Dynatrace Fundamental Analysis Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, DT has had strong sales and earnings growth:
Also, EPS is estimated to ramp higher this year by +14.6%.
Now it makes sense why the stock has been generating Big Money interest again. DT has a track record of strong financial performance.
Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.
Dynatrace has been a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
It’s made the rare Outlier 20 report twice this year and 29 times since 2015. The blue bars below show when DT was a top pick in 2026…institutions remain buyers:
Two outlier inflows kept DT shares gaining – there have been 29 total outlier signals since 2015. Source: www.moneyflows.com Tracking unusual volumes reveals the power of money flows.
This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.
Dynatrace Price Prediction The DT revival isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no position in DT at the time of publication.
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Dynatrace koupí Arize za celkovou protihodnotu 915 milionů USD, z toho přibližně 815 milionů USD v hotovosti a zbytek v náhradních akciových odměnách pro zaměstnance, aby rozšířila nabídku v oblasti AI observability. Firma čeká uzavření transakce do konce září nebo začátkem října.
Datadog Soars, Dynatrace Slumps: Gap Widens in AI Agent StocksDynatrace NYSE: DT said it plans to acquire AI observability company Arize for total consideration of $915 million, consisting of approximately $815 million in cash and replacement equity awards for Arize employees who join Dynatrace.
The transaction is expected to close by the end of September or in early October, subject to customary closing conditions and regulatory approvals. Dynatrace said it has sufficient cash on hand and access to its existing credit facility to fund the acquisition, and said its plans for share repurchases are unchanged.
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3 Stocks Flashing Rare Buy Signals After the Market's Wildest MonthChief Executive Officer Rick McConnell described Arize as a category leader in AI observability and said the deal is intended to expand Dynatrace's position in a market the company expects to exceed $10 billion by 2030. AI observability encompasses evaluation of AI-powered applications before and after release, as well as monitoring how large language models, agents and orchestration layers perform in production.
Broader AI observability portfolio McConnell said enterprises need to assess whether AI systems are functioning, whether their outputs are accurate and trustworthy, and whether agentic systems are delivering their intended outcomes. He said AI systems can fail differently than traditional software, including through plausible but incorrect, biased or factually wrong outputs that may not generate conventional infrastructure alerts.
DTE’s Stargate Deal Turns Power Into ProfitsArize adds capabilities in AI and agent evaluation, experimentation and agentic workflow optimization across development and production, according to Dynatrace. Those capabilities are intended to complement Dynatrace's existing offerings in application and infrastructure observability, model performance, AI usage and cost, and business impact.
“This is not a point solution,” McConnell said. “It is a portfolio expansion that positions Dynatrace to better capture a greater share of AI spending in this rapidly emerging category.”
Dynatrace said it had already been investing internally in AI observability for roughly 18 months. McConnell said the acquisition would accelerate its roadmap by adding areas where Arize has developed deeper capabilities, including LLM experimentation, evaluations and observability for issues such as model drift and hallucinations.
Developer reach and open-source strategy A central element of the deal is Arize's reach among AI developers through its open-source Phoenix platform. McConnell said Phoenix has millions of monthly downloads and is used for LLM evaluations. Arize also has an open-source standard called OpenInference, Dynatrace said.
Dynatrace expects the acquisition to extend its reach into developer-led buying motions and AI-native workloads. McConnell said the company views developers as increasingly influential in observability decisions as organizations move observability earlier in the software development cycle.
Arize currently has roughly 200 customers, with approximately 20% to 30% overlap with Dynatrace customers, Chief Financial Officer Jim Benson said. The companies already have shared customers across industries including automotive, communications, e-commerce and financial services, according to Dynatrace.
Dynatrace intends initially to let Arize operate with substantial independence rather than immediately fully integrating its technology. McConnell said the near-term priority is to preserve Arize's growth and product-development velocity while integrating go-to-market efforts. Arize co-founder Jason is expected to join Dynatrace's leadership team and lead Arize as a business unit, while Arize's sales organization will have a dotted-line relationship to Dynatrace Chief Revenue Officer Dan Zugelder.
Dynatrace said it expects to eventually integrate Arize into its Dynatrace Platform Subscription, or DPS, offering, though Benson said that will not occur on day one. He added that Arize's revenue-recognition model is similar to Dynatrace's: annual contracts, ratable revenue recognition and advance billing.
Expected financial impact Benson said Arize is a small but rapidly growing business. Dynatrace expects the acquisition to be immediately accretive to annual recurring revenue growth and to contribute approximately 200 basis points to Dynatrace's ARR growth rate in fiscal 2027, or roughly $40 million.
Dynatrace previously guided for fiscal 2027 ARR growth of 15.5% to 16.5%, Benson said. The company plans to provide additional information on Arize's growth profile following the transaction close and during its second-quarter earnings call in early November.
On profitability, Dynatrace expects Arize to dilute non-GAAP operating margin by about 175 basis points in fiscal 2027. However, Benson said anticipated synergies should drive incremental operating-margin expansion from fiscal 2027 levels in fiscal 2028 and beyond.
The company does not expect a material impact on its second-quarter guidance because of the anticipated close timing. Dynatrace executives said the acquisition is designed to create cross-sell and upsell opportunities in both customer bases while adding access to AI-native companies and the broader developer community.
About Dynatrace (NYSE:DT)Dynatrace is a global software intelligence company specializing in application performance management (APM), cloud infrastructure monitoring, and digital experience management. Its flagship offering, the Dynatrace Software Intelligence Platform, leverages artificial intelligence to provide real-time observability across distributed environments, including on-premises data centers, private clouds, public clouds and hybrid deployments. Organizations rely on Dynatrace to detect anomalies, troubleshoot performance issues and optimize end-user experiences through automated root-cause analysis powered by the company's engine, Davis.
The Dynatrace platform comprises modules for full-stack application monitoring, digital experience monitoring, infrastructure monitoring and business analytics.
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Dynatrace uvedla, že AI workloady zvyšují poptávku po observabilitě a že zákazníci s AI využívají platformu asi 1,5× více než ne-AI kohorty. Společnost zároveň hlásí 41% organický růst nového ARR v 1. čtvrtletí.
Datadog Soars, Dynatrace Slumps: Gap Widens in AI Agent StocksDynatrace NYSE: DT CEO Rick McConnell said the observability market is entering a new phase as artificial intelligence workloads increase the need for monitoring, analysis and automation across enterprise technology environments.
Speaking at the KeyBank Technology Leadership Forum, McConnell said AI is not affecting all software categories equally, but he views observability as an “AI winner” because AI workloads require more oversight rather than less. Traditional observability has focused on business resilience, including whether software is running and meeting expected requirements. AI observability adds questions around whether an AI system’s outputs are accurate and based on the right information, he said.
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AI Raises the Importance of End-to-End Observability 3 Stocks Flashing Rare Buy Signals After the Market's Wildest MonthMcConnell said application performance management, or APM, is particularly relevant for AI observability because tracing is important for use cases such as large-language-model evaluation and experimentation. However, he said organizations also need a broader, integrated platform that combines traces, metrics, logs, real-user data and security-related information.
“The way to have confidence in your answers is by having the collection of all these domains using all data types,” McConnell said. He argued that enterprises can no longer effectively rely on separate vendors for APM, infrastructure monitoring, user monitoring, security and log management.
DTE’s Stargate Deal Turns Power Into ProfitsAccording to McConnell, integrated data can support increasingly automated operations. He described a process in which the Dynatrace platform identifies an incident, analyzes the cause, determines a triage plan and uses agents to execute actions. Organizations may choose to retain human review before agents act, he said.
McConnell added that the eventual goal is autonomous operations, particularly as AI agents are increasingly used to write code and enterprises manage a growing number of applications and infrastructure components.
Company Cites ARR, Log and Customer Acquisition Momentum McConnell characterized Dynatrace’s first-quarter performance as strong across the business. He said the company reported 41% organic net-new annual recurring revenue, or ARR, growth, exceeding the high end of its guidance across metrics.
While he cautioned that the company does not expect to deliver more than 40% net-new ARR growth every quarter, McConnell said the quarter supported Dynatrace’s outlook for ARR reacceleration. He described fiscal 2026 as a year focused on stabilizing ARR growth and fiscal 2027 as a year aimed at reaccelerating it.
McConnell identified three themes behind the quarter’s results:
Growing demand associated with AI workloads and AI-generated code. Rapid growth in log-management consumption. A record increase in new-logo ARR, which rose more than 160% year over year. On logs, McConnell said Dynatrace had previously targeted $100 million in log consumption during fiscal 2026. The company reached that level a few quarters ago and has since surpassed $200 million in log consumption, meaning consumption doubled within two quarters.
He said customers are often considering Dynatrace for existing, rather than new, logging workloads. Cost is a major driver, according to McConnell, who said enterprises have raised concerns over rapidly rising log costs. He also cited Dynatrace’s Bindplane acquisition, which he said enables inbound log filtering and can reduce the volume of logs that must be ingested and stored.
Platform Subscription Model Supports Broader Adoption McConnell said Dynatrace’s Platform Subscription, or DPS, has helped customers adopt the platform more broadly. Under the model, customers make an overall spending commitment and draw down that commitment based on their changing use of Dynatrace capabilities, rather than purchasing separate product-specific stock-keeping units.
DPS now represents 75% of Dynatrace ARR and is used by more than two-thirds of customers, McConnell said. He said the model can be particularly useful for customers whose usage varies by season, such as e-commerce companies that may need more observability during November and December.
As three-year DPS agreements come up for renewal, the company expects customer contract commitments to increasingly reflect consumption growth. McConnell said platform consumption continues to grow by more than 20%, compared with the company’s indicated 17% ARR growth inclusive of the Bindplane acquisition. He said the renewal cycle could support improved net revenue retention, particularly in the second half of the year.
Early AI Adoption Producing Higher Consumption McConnell said AI deployment remains in the “early innings,” but Dynatrace is already observing AI workloads for more than 1,000 customers. The company has deployed Dynatrace agents for actions such as automatic remediation and triage at more than 800 customers, he said.
Customers using Dynatrace for AI-related workloads are consuming the platform at a rate roughly 1.5 times that of non-AI cohorts, McConnell said, partly because AI systems generate substantial telemetry data.
He said Dynatrace sees several potential AI-related monetization avenues, including increased platform consumption, AI-observability capabilities and charges associated with agent actions. However, McConnell said the company has not incorporated those incremental monetization layers into its guidance because it is still unclear how quickly they will develop.
McConnell estimated that AI observability represents a $10 billion incremental category within an approximately $80 billion overall observability market, adding that the AI-observability segment is growing at an estimated 40% to 50% rate.
About Dynatrace (NYSE:DT)Dynatrace is a global software intelligence company specializing in application performance management (APM), cloud infrastructure monitoring, and digital experience management. Its flagship offering, the Dynatrace Software Intelligence Platform, leverages artificial intelligence to provide real-time observability across distributed environments, including on-premises data centers, private clouds, public clouds and hybrid deployments. Organizations rely on Dynatrace to detect anomalies, troubleshoot performance issues and optimize end-user experiences through automated root-cause analysis powered by the company's engine, Davis.
The Dynatrace platform comprises modules for full-stack application monitoring, digital experience monitoring, infrastructure monitoring and business analytics.
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Dynatrace oznámil, že výsledky za 1. fiskální čtvrtletí překonaly horní hranici výhledu, když tržby dosáhly 555 milionů USD a vzrostly o 15 % v konstantní měně, zatímco ARR dosáhl 2,14 miliardy USD a vzrostl o 17 % v konstantní měně. Firma zároveň zvýšila celoroční výhled tržeb i EPS na 1,97 až 1,99 USD na akcii.
Datadog Soars, Dynatrace Slumps: Gap Widens in AI Agent StocksDynatrace NYSE: DT said its first-quarter fiscal 2027 results exceeded the high end of its guidance, supported by record new-logo growth, expanding platform consumption and continued demand for observability tools as enterprises deploy more artificial intelligence workloads.
Total annual recurring revenue, or ARR, reached $2.14 billion, up 17% year over year in constant currency. Net new ARR was $85 million, an increase of 66% from the prior-year quarter. Excluding the $13 million contribution from the BindPlane acquisition, organic net new ARR was $73 million, representing 41% growth.
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3 Stocks Flashing Rare Buy Signals After the Market's Wildest MonthChief Executive Officer Rick McConnell said the quarter reinforced management’s confidence that Dynatrace can accelerate ARR growth during fiscal 2027. The company cited enterprise demand for end-to-end observability, improving go-to-market execution and increasing complexity in customer technology environments as contributors to the performance.
Revenue, profitability and customer additions Total revenue was $555 million, while subscription revenue was $530 million. Both measures increased 15% year over year in constant currency and were 100 basis points above the high end of Dynatrace’s guidance, according to Chief Financial Officer Jim Benson.
DTE’s Stargate Deal Turns Power Into ProfitsNon-GAAP operating margin was 29%, also exceeding the company’s guidance by 100 basis points. Non-GAAP net income totaled $140 million, or $0.48 per diluted share, which was $0.03 above the high end of the company’s outlook.
Dynatrace generated $309 million in adjusted free cash flow during the first quarter. The company updated its free-cash-flow definition to exclude restructuring, acquisition-related and other non-recurring cash expenses. On a trailing 12-month basis, adjusted free cash flow was $579 million, or 28% of revenue, including a 500-basis-point effect from cash taxes.
The company added 122 new logos during the quarter. Average land size was nearly $285,000, helping drive more than 160% growth in new-logo ARR. Benson said the results reflected a go-to-market strategy that increasingly targets strategic and enterprise accounts, as well as demand from customers seeking to consolidate fragmented monitoring tools onto a single platform.
Average ARR per customer rose to more than $500,000. Gross retention remained in the mid-90% range, while trailing-12-month net retention was 110%.
Logs and AI usage emerge as growth drivers Log management remained Dynatrace’s fastest-growing product category, growing more than 100% and reaching nearly $200 million in annualized consumption. The company had surpassed $100 million in annualized log consumption two quarters earlier.
Benson said BindPlane, which supports OpenTelemetry data collection, was performing ahead of plan and would help accelerate the logs business. BindPlane contributed $13 million of ARR in the first quarter and is included in Dynatrace’s reported log-consumption figure.
Management also emphasized AI as a driver of platform usage and potential monetization. McConnell said AI workloads generate significantly more telemetry, including logs, traces and metrics, than prior workloads. Dynatrace sees three AI-related revenue opportunities: increased consumption from AI workloads, demand for AI observability capabilities, and usage of Dynatrace’s own AI functions and agents through its Dynatrace Platform Subscription, or DPS, model.
More than 1,000 customers now use Dynatrace to observe AI and large-language-model workloads in production, up from about 850 in the preceding quarter. More than 800 customers are using Dynatrace agentic capabilities for autonomous operations, up from about 500 in the prior quarter. Consumption growth among customers in those AI cohorts is 1.5 times that of customers outside the cohort, McConnell said.
Dynatrace estimated that the AI observability market will exceed $10 billion by 2030 and grow at more than 50% annually. McConnell said the opportunity is expected to develop over time rather than rapidly displace the company’s core end-to-end observability business.
The company also highlighted Bluebox, a new offering intended for AI-first development teams. McConnell said Bluebox provides coding agents with context from live systems before software changes are released and can identify root causes and return evidence-backed fixes after deployment, while keeping developers in control.
Outlook maintained for ARR growth; revenue and EPS guidance raised Dynatrace maintained its full-year constant-currency ARR growth outlook of 15.5% to 16.5%. Benson said the company expects foreign exchange to reduce reported ARR by $14 million and revenue by $4 million, reflecting an incremental currency headwind of $23 million to ARR and $19 million to revenue compared with prior assumptions.
For fiscal 2027, Dynatrace raised its constant-currency total revenue and subscription revenue growth outlook by 25 basis points at the midpoint. It now expects both measures to grow 14.5% to 15% year over year.
Full-year non-GAAP operating margin is expected to reach up to 29.75%. Non-GAAP earnings per diluted share are projected at $1.97 to $1.99, up $0.04 at the midpoint. Adjusted free-cash-flow margin guidance was maintained at 26.5%. Second-quarter revenue and subscription revenue growth are expected to be 15% to 16%. Second-quarter non-GAAP operating margin is projected at 29.5% to 30%, with non-GAAP EPS of $0.48 to $0.49. Benson said the company expects its DPS renewals to be weighted toward the second half of the fiscal year, with roughly 70% of annual resets occurring during that period. If consumption trends continue, he said management expects improved expansion activity and a possible net-retention-rate inflection in the back half.
Dynatrace repurchased 7.1 million shares for $275 million during the quarter, compared with $224 million in the prior quarter. Benson said the stepped-up repurchase activity reflected management’s confidence in the company’s operating momentum, long-term growth prospects and cash-flow outlook.
CFO retirement planned McConnell also said Benson plans to retire by the end of fiscal 2027. Dynatrace plans to conduct a search for a successor, and McConnell said he expects a smooth transition.
“We are pleased with our strong start to fiscal 2027 and remain confident that we are on the right track to accelerate ARR growth,” Benson said.
About Dynatrace (NYSE:DT)Dynatrace is a global software intelligence company specializing in application performance management (APM), cloud infrastructure monitoring, and digital experience management. Its flagship offering, the Dynatrace Software Intelligence Platform, leverages artificial intelligence to provide real-time observability across distributed environments, including on-premises data centers, private clouds, public clouds and hybrid deployments. Organizations rely on Dynatrace to detect anomalies, troubleshoot performance issues and optimize end-user experiences through automated root-cause analysis powered by the company's engine, Davis.
The Dynatrace platform comprises modules for full-stack application monitoring, digital experience monitoring, infrastructure monitoring and business analytics.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Should You Invest $1,000 in Dynatrace Right Now?Before you consider Dynatrace, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Dynatrace wasn't on the list.
While Dynatrace currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
The AI boom is creating opportunities across semiconductors, cloud computing, enterprise software, infrastructure, cybersecurity, and automation.
Inside this report, you’ll find 10 companies positioned to benefit as artificial intelligence moves from hype to real-world deployment and becomes a core growth driver for corporate America.
Dynatrace (DT - Free Report) came out with quarterly earnings of $0.48 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +6.67%. A quarter ago, it was expected that this software intellegence company would post earnings of $0.39 per share when it actually produced earnings of $0.41, delivering a surprise of +5.13%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Dynatrace, which belongs to the Zacks Computers - IT Services industry, posted revenues of $554.55 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.96%. This compares to year-ago revenues of $477.35 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Dynatrace shares have added about 5.5% since the beginning of the year versus the S&P 500's gain of 13%.
What's Next for Dynatrace?While Dynatrace has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Dynatrace was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.48 on $569.58 million in revenues for the coming quarter and $1.95 on $2.33 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Cerence (CRNC - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This automotive artificial intelligence developer is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of +44.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Cerence's revenues are expected to be $68.26 million, up 9.7% from the year-ago quarter.
Dynatrace (DT) v poslední obchodní seanci klesl o 4,16 % na 42,85 USD, i když širší trh rostl. Před zveřejněním výsledků trh čeká na EPS 0,45 USD a tržby 549,3 mil. USD.
Dynatrace (DT - Free Report) closed the most recent trading day at $42.85, moving -4.16% from the previous trading session. This move lagged the S&P 500's daily gain of 0.89%. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, added 1.29%.
Shares of the software intellegence company witnessed a gain of 10.5% over the previous month, beating the performance of the Computer and Technology sector with its loss of 6.6%, and the S&P 500's loss of 0.63%.
The upcoming earnings release of Dynatrace will be of great interest to investors. The company is predicted to post an EPS of $0.45, indicating a 7.14% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $549.3 million, showing a 15.07% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.95 per share and revenue of $2.33 billion, indicating changes of +14.71% and +15.23%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Dynatrace. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.22% fall in the Zacks Consensus EPS estimate. Dynatrace is currently a Zacks Rank #3 (Hold).
Investors should also note Dynatrace's current valuation metrics, including its Forward P/E ratio of 22.97. Its industry sports an average Forward P/E of 12.98, so one might conclude that Dynatrace is trading at a premium comparatively.
Investors should also note that DT has a PEG ratio of 1.65 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computers - IT Services stocks are, on average, holding a PEG ratio of 0.99 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 28% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Key Takeaways Dynatrace ended fiscal 2026 with ARR of about $2.1 billion, up 18% year over year.DPS covered over three-quarters of ARR as customers consumed faster than non-DPS users.Higher cloud costs may pressure fiscal 2027 margins, while competition keeps execution tight. Dynatrace (DT - Free Report) is trying to turn enterprise software complexity into a larger platform opportunity. The company’s case rests on annual recurring revenue growth, higher platform consumption and demand for unified observability.
The stock setup is less simple. Usage trends are healthy, but higher cloud costs, competitive pressure and the timing gap between consumption and annual recurring revenue recognition keep the near-term outlook balanced.
How Dynatrace Turns Data Into Platform StickinessDynatrace combines observability, application security, analytics and automation in a single platform built for cloud, hybrid and AI-driven environments. The aim is to give development, security and operations teams one system for monitoring performance, finding root causes and automating responses.
Grail serves as the unified data layer for logs, metrics, traces, events and other telemetry. Smartscape maps real-time dependencies across applications, infrastructure, networks and users. Dynatrace Intelligence adds deterministic and agentic AI, helping customers move from visibility to automated answers and actions.
That architecture matters because the market is moving beyond point tools. Enterprises are looking to reduce tool sprawl, improve reliability and manage AI workloads with more context. Competitors such as Cisco Systems (CSCO - Free Report) , Datadog (DDOG - Free Report) and Elastic (ESTC - Free Report) keep the market crowded, but they also reinforce how important observability has become across enterprise software.
DT Growth Rides ARR and Larger Enterprise DealsDynatrace ended fiscal 2026 with annual recurring revenue (ARR) of about $2.1 billion as of March 31, 2026, up 18% year over year. Fiscal 2026 revenues reached $2 billion, with subscription revenues representing 96% of the total.
Large enterprise activity also improved. Management highlighted a record 22 deals with incremental annual contract value above $1 million in the fiscal fourth quarter, including nine new logos. These larger wins reflect a shift toward strategic platform decisions rather than smaller monitoring-tool purchases.
Logs remain an important growth engine. Log management annualized consumption surpassed $100 million, with growth of more than 100% year over year in every quarter of fiscal 2026. The Bindplane acquisition is intended to reduce telemetry-ingest friction and support broader platform consumption.
Dynatrace Leans on DPS to Expand Customer SpendThe Dynatrace Platform Subscription model is central to the expansion story. Under this structure, customers commit to a minimum annual platform spend and consume services based on actual usage and published rate cards.
By the end of fiscal 2026, more than three-quarters of ARR and more than 60% of customers were on this model. DPS customers have been consuming faster than non-DPS customers, which supports broader adoption across the platform.
The timing is important. Consumption can run ahead of recognized annual recurring revenue because usage is captured through resets and renewals. Fiscal 2027 includes the largest cohort of DPS customers reaching those points, making conversion of usage into contracted recurring revenue a key metric to watch.
DT Risks Start With Margin Pressure and CompetitionThe bull case is measurable, but not clean. Dynatrace expects about a one-point gross margin headwind in fiscal 2027 as cloud hosting costs rise with platform consumption. Management expects the pressure to be temporary, with recovery beginning in fiscal 2028, but profitability optics may remain constrained in the near term.
The consumption model also creates timing risk. Strong usage does not always translate immediately into annual recurring revenue, which can make quarterly trends uneven.
Competition remains another concern. Cisco, through AppDynamics and Splunk, Datadog, and Elastic all compete across parts of observability, application performance monitoring, logs and digital experience monitoring. That leaves Dynatrace with room to win consolidation deals, but it also keeps pricing, product innovation and execution under pressure.
Year to date (YTD), Dynatrace shares have appreciated 1.5% compared with Datadog’s jump of 89.3% and Cisco’s 55.6%. Elastic shares dropped 19.7% YTD.
DT Stock’s Price Performance
Image Source: Zacks Investment Research
ConclusionThe bottom line is that Dynatrace has credible business drivers, including recurring revenue growth, AI-powered platform differentiation, log expansion and larger enterprise wins. At the same time, cloud cost pressure and a competitive market keep the stock from being a clean growth story at current levels.
Dynatrace currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dynatrace těží z AI, cloudu a růstu telemetrie, protože firmy přecházejí na širší platformy pro monitoring. Více než 500 zákazníků používá agentické funkce a více než 850 zákazníků sleduje AI a LLM workloady, zatímco log management přesáhl roční útratu 100 milionů USD.
Key Takeaways Dynatrace is winning larger platform deals as enterprises replace fragmented monitoring tools.More than 500 customers use agentic capabilities, while 850-plus monitor AI and LLM workloads.Triple-digit log growth topped $100 million in annualized consumption, but hosting costs may pressure margins. Dynatrace (DT - Free Report) is benefiting from several themes shaping enterprise software spending, including artificial intelligence, cloud complexity, platform consolidation and rising telemetry volumes.
The opportunity is clear, but not risk-free. Higher consumption can lift demand while also raising hosting costs, and DT still has to convert usage growth into annual recurring revenue and profit expansion.
Dynatrace Gains as Enterprises Cut Tool SprawlEnterprises are moving away from fragmented monitoring tools and toward end-to-end platforms. Dynatrace has gained from that shift, with larger and more strategic deals supporting its platform story.
In the fourth quarter of fiscal 2026, the company recorded 22 deals with incremental annual contract value above $1 million, including nine new logos. That shows consolidation is not just a market slogan. It is affecting buying behavior.
Competition remains intense. Datadog (DDOG - Free Report) is also positioned around cloud monitoring and observability, giving investors another way to track demand for AI-era infrastructure visibility. Cisco Systems (CSCO - Free Report) , through AppDynamics and Splunk, adds scale and breadth to the same competitive field. DT is also facing competition from Elastic (ESTC - Free Report) .
Year to date (YTD), Dynatrace shares have appreciated 1.5% compared with Datadog’s jump of 89.3% and Cisco’s 55.6%. Elastic shares have dropped 19.7% YTD.
DT Stock’s Price Performance
Image Source: Zacks Investment Research
DT Sees AI Demand Shift Toward Autonomous OperationsDynatrace is aligning its platform with the move from reactive monitoring to autonomous operations. Its technology combines observability data, causal context and automation to help enterprises identify problems and take action faster.
The company’s AI positioning is tied to actual workflows. More than 500 customers are deploying its agentic capabilities, while more than 850 customers are using Dynatrace to observe and trust artificial intelligence and large language model workloads in production.
Developer adoption is another part of the story. The Postman collaboration brings AI-powered observability closer to application programming interface design and testing workflows, extending Dynatrace beyond traditional operations teams.
Dynatrace is Tied to the Explosion in Logs and TelemetryTelemetry growth is becoming a major demand driver. Logs were Dynatrace’s fastest-growing product in fiscal 2026, with triple-digit growth, and log management annualized consumption surpassed $100 million.
The planned Bindplane acquisition strengthens this angle. Bindplane is intended to improve telemetry capture, optimization and routing, helping customers manage data quality, ingest costs and governance.
That growth has a margin trade-off. Dynatrace expects about a one-point gross margin headwind in fiscal 2027 as cloud hosting costs rise with platform consumption. Management expects the pressure to be temporary, but execution on cloud cost efficiency matters.
DT Public Sector Push Opens a New Trend LineDynatrace is also extending its trend exposure into regulated markets. Its plan to pursue FedRAMP High authorization builds on its existing FedRAMP Moderate authorization and targets stricter government security requirements.
That push connects observability and AI adoption with compliance needs. For government and highly regulated organizations, the ability to monitor complex environments while meeting data and security standards can influence vendor selection.
This does not remove competitive pressure, but it gives DT another avenue for growth. Regulated-sector demand may support larger platform opportunities when buyers need security, visibility and governance in the same operating environment.
ConclusionDynatrace is a credible beneficiary of AI, cloud and telemetry growth. The company has scale, platform breadth and evidence of customer expansion, but its stock case still depends on cleaner conversion of consumption into annual recurring revenue and profits.
Dynatrace currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dynatrace okamžitě jmenovala do představenstva George Riedela a Dana Streetmana po konstruktivním jednání se Starboard Value. Firma zároveň plánuje Investor Day po výsledcích za 2. fiskální čtvrtletí 2027.
BOSTON--(BUSINESS WIRE)--Dynatrace (NYSE: DT), the leading AI-powered observability platform, today announced the appointments of George Riedel and Dan Streetman to its Board of Directors, effective immediately. These appointments follow constructive and collaborative engagement with Starboard Value LP (“Starboard”).
Mr. Riedel brings significant experience as a CEO and senior executive at technology companies, as well as many years of board chair and independent director experience at both private and public technology companies. Mr. Streetman is the CEO of Tanium, a privately held cybersecurity and systems management company that is leveraging AI to drive meaningful growth and profitability, and he brings decades of senior leadership experience in autonomous IT, enterprise software, and information technology.
“George and Dan are experienced leaders whose valuable financial, operational, and business strategy expertise in technology broadly, and software and AI specifically, will serve as great resources for our management team in advancing our strategy to create value for shareholders,” said Jill Ward, Chair of Dynatrace’s Board of Directors. “We appreciate our engagement with Starboard and look forward to executing on our shared vision for Dynatrace’s future.”
“This is an exciting and dynamic time for Dynatrace as we continue to capitalize on an AI-first world and the additions of George and Dan to our Board will further our commitment to this priority,” said Rick McConnell, Chief Executive Officer of Dynatrace and a member of the Board of Directors.
Dynatrace also announced its plans to hold an Investor Day following its announcement of Q2 fiscal 2027 financial results to outline its path to the “Rule of 50” 1 in fiscal 2029. The company reiterated its intention to continue returning significant capital to shareholders under its $1 billion share repurchase authorization and plans to communicate a capital return framework at the Investor Day. Dynatrace and Starboard intend to engage substantively in the coming months.
Mr. McConnell continued, “We are continuing to execute our strategic plan to deliver balanced growth and profitability. We are also focused on refining our equity investor communications, including through our upcoming Investor Day, as we execute to achieve Dynatrace’s operational and financial objectives.”
Peter Feld, Managing Member, Portfolio Manager, and Head of Research of Starboard, said, “We invested in Dynatrace because we believe the company will be a beneficiary of enterprise AI adoption and has a tremendous opportunity to create significant shareholder value through top-line growth, margin expansion, and capital return. We appreciate the constructive engagement we have had with Dynatrace’s Board and management team and look forward to building on this productive dialogue as the company seeks to capitalize on these opportunities.”
New Director Biographies
George Riedel brings many decades of experience leading business strategy at technology and software companies, including as CEO and Chairman at Cloudmark, a messaging security and threat-intelligence platform, and Chief Strategy Officer and BU President at Nortel Networks, a leading telecommunications company. He also served as Senior Partner at McKinsey & Co., serving clients in technology, telecom and media industries. Mr. Riedel is a seasoned board chair and independent director at both private and public companies. He currently serves as Chairman of the Juvare Board, a critical incident preparedness and response technology provider, and Bridgeway Benefits Technologies, as well as Kasti.AI. He previously served as Board Chairman at Infinera and Accedian Networks and a director at Cerner Corporation and XPERI, among others. Mr. Riedel earned a B.S. with distinction in Mechanical Engineering from the University of Virginia and an M.B.A. from Harvard Business School.
Dan Streetman currently serves as Chief Executive Officer and board member at Tanium, a leader in autonomous IT. He brings decades of experience leading global customer operations, sales, marketing, product development and professional services for public and private enterprise software and information technology companies, as well as current executive experience creating agentic AI-driven workflows to transform customer experiences, accelerate growth opportunities, and deliver efficiencies. Prior to Tanium, Mr. Streetman served as CEO of TIBCO Software, a provider of enterprise software. Earlier in his career, Mr. Streetman oversaw significant data-driven transformations at BMC, Salesforce, and C3.ai. Mr. Streetman is a distinguished graduate of the U.S. Military Academy at West Point, where he served as the first regiment commander, and he earned an M.B.A. from Harvard Business School.
About Dynatrace
Dynatrace is advancing observability for today’s digital businesses, helping to transform the complexity of modern digital ecosystems into powerful business assets. By leveraging AI-powered insights, Dynatrace enables organizations to analyze, automate, and innovate faster to drive their business forward. Learn more at www.dynatrace.com.
Starboard Value LP is an investment adviser with a focused and differentiated fundamental approach to investing in publicly traded companies. Starboard invests in deeply undervalued companies and actively engages with management teams and boards of directors to identify and execute on opportunities to unlock value for the benefit of all shareholders.
Cautionary Language Concerning Forward-Looking Statements
This press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding AI, the company’s plans to hold an Investor Day that outlines, among other things, its path to becoming a “Rule of 50” company in fiscal 2029, the company’s intention to continue returning significant capital to shareholders under its $1 billion share repurchase authorization, the company’s strategic plan to deliver balanced growth and profitability, and the company’s focus on refining its equity investor communications. These forward-looking statements include all statements that are not historical facts and statements identified by words such as “will,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies, and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies, and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations, or strategies will be attained or achieved. Actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control, including the risks set forth under the caption “Risk Factors” in our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, and our other SEC filings. We assume no obligation to update any forward-looking statements contained in this document because of new information, future events, or otherwise.
