Arrowstreet Capital Limited Partnership acquired a new stake in shares of Dynatrace, Inc. (NYSE:DT – Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the SEC. The fund acquired 5,161,983 shares of the company’s stock, valued at approximately $190,890,000. Arrowstreet Capital Limited Partnership owned 1.73% of Dynatrace at the end of the most recent reporting period.
A number of other hedge funds have also recently made changes to their positions in DT. Siren L.L.C. lifted its position in Dynatrace by 30.2% during the first quarter. Siren L.L.C. now owns 150,000 shares of the company’s stock valued at $5,547,000 after purchasing an additional 34,771 shares during the last quarter. Globeflex Capital L P boosted its position in Dynatrace by 391.1% in the 1st quarter. Globeflex Capital L P now owns 130,797 shares of the company’s stock valued at $4,837,000 after buying an additional 104,163 shares during the period. NewEdge Wealth LLC grew its stake in Dynatrace by 56.4% in the 1st quarter. NewEdge Wealth LLC now owns 55,203 shares of the company’s stock worth $2,041,000 after acquiring an additional 19,899 shares in the last quarter. First Trust Advisors LP increased its position in shares of Dynatrace by 706.8% during the first quarter. First Trust Advisors LP now owns 6,801,507 shares of the company’s stock worth $251,520,000 after acquiring an additional 5,958,505 shares during the period. Finally, Westpac Banking Corp lifted its position in shares of Dynatrace by 20.3% in the 1st quarter. Westpac Banking Corp now owns 6,796 shares of the company’s stock worth $251,000 after purchasing an additional 1,148 shares during the period. Institutional investors own 94.28% of the company’s stock.
Dynatrace Stock Performance Shares of DT stock opened at $41.67 on Friday. The company has a market capitalization of $12.10 billion, a price-to-earnings ratio of 77.18, a PEG ratio of 2.62 and a beta of 0.73. The stock’s 50 day simple moving average is $42.41 and its 200 day simple moving average is $39.29. Dynatrace, Inc. has a twelve month low of $31.64 and a twelve month high of $55.49.
Dynatrace (NYSE:DT – Get Free Report) last posted its quarterly earnings data on Wednesday, May 13th. The company reported $0.41 earnings per share for the quarter, topping the consensus estimate of $0.39 by $0.02. Dynatrace had a return on equity of 10.37% and a net margin of 8.06%.The business had revenue of $531.72 million during the quarter, compared to analysts’ expectations of $521.01 million. During the same quarter in the previous year, the firm earned $0.33 EPS. The firm’s revenue was up 19.4% compared to the same quarter last year. Dynatrace has set its FY 2027 guidance at 1.930-1.950 EPS and its Q1 2027 guidance at 0.440-0.450 EPS. On average, analysts forecast that Dynatrace, Inc. will post 1.11 EPS for the current fiscal year.
Analyst Ratings Changes A number of equities research analysts have commented on the company. Citigroup decreased their price target on Dynatrace from $60.00 to $50.00 and set a “buy” rating for the company in a research note on Thursday, May 14th. Wolfe Research reissued an “outperform” rating and issued a $42.00 price objective on shares of Dynatrace in a research note on Thursday, May 14th. Needham & Company LLC reiterated a “hold” rating on shares of Dynatrace in a report on Thursday, June 25th. KeyCorp upped their target price on shares of Dynatrace from $47.00 to $53.00 and gave the stock an “overweight” rating in a research note on Thursday, July 16th. Finally, BTIG Research cut their price target on Dynatrace from $53.00 to $47.00 and set a “buy” rating on the stock in a research report on Wednesday, May 13th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and seven have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $49.42.
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Dynatrace Profile (Free Report)
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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BOSTON--(BUSINESS WIRE)--Dynatrace (NYSE: DT), the leading AI-powered observability platform, today announced that it will report financial results for its first quarter of fiscal year 2027 ended June 30, 2026 before the U.S. financial markets open on August 5, 2026. In conjunction with this report, Dynatrace will host a conference call and live webcast to discuss the company's financial results and its business outlook. Conference Call Details The conference call will begin at 8:00 a.m. Easter.
On July 21, 2026, Dynatrace Inc (DT) shares fell 4.2% today, bringing the current price to $42.85. The stock has fluctuated between a 52-week high of $55.49 and
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.
[url="]Dynatrace (NYSE: DT)[/url], the leading AI-powered observability platform, today announced that Gartner has named it a Leader in the [url="]2026 Magic Q
BOSTON--(BUSINESS WIRE)--Dynatrace (NYSE: DT), the leading AI-powered observability platform, today announced that Gartner has named it a Leader in the 2026 Magic Quadrant for Observability Platforms. Gartner evaluated 19 vendors for this year's Magic Quadrant, with Dynatrace being named a Leader for the 16th time. "Enterprises running mission-critical systems on AI-powered infrastructure need more than visibility; they need answers," said Steve Tack, EVP, Chief Product Officer at Dynatrace. "A.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Dynatrace (DT - Free Report) Dynatrace provides an AI-powered observability and application security platform that unifies data, context, and automation to help enterprises monitor, secure, and optimize modern software environments. The platform integrates with hyperscalers (AWS, Azure, Google Cloud) and supports hybrid/on-premises systems, including mainframes. Customers primarily use SaaS, with an optional self-managed Dynatrace Managed for data sovereignty.
DT is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. DT has a Momentum Style Score of B, and shares are up 7.2% over the past four weeks.
Nine analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.04 to $1.95 per share. DT also boasts an average earnings surprise of +7.6%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, DT should be on investors' short list.
Dynatrace (DT - Free Report) ended the recent trading session at $43.68, demonstrating a -3.43% change from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.42%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.29%.
The software intellegence company's stock has climbed by 12.04% in the past month, exceeding the Computer and Technology sector's gain of 0.85% and the S&P 500's gain of 2.2%.
The upcoming earnings release of Dynatrace will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.45, reflecting a 7.14% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $549.3 million, reflecting a 15.07% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.95 per share and a revenue of $2.33 billion, demonstrating changes of +14.71% and +15.23%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Dynatrace. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Dynatrace presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Dynatrace is currently trading at a Forward P/E ratio of 23.24. This represents a premium compared to its industry average Forward P/E of 13.05.
It's also important to note that DT currently trades at a PEG ratio of 1.67. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computers - IT Services was holding an average PEG ratio of 1.02 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 102, positioning it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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.
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 (NYSE:DT | DT Price Prediction) is now the newest test case for the Starboard Value playbook that ended with Cisco Systems (NASDAQ:CSCO) buying Splunk for roughly $28 billion in September 2023.
Investors with an interest in Computers - IT Services stocks have likely encountered both TD SYNNEX (SNX - Free Report) and Dynatrace (DT - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, TD SYNNEX is sporting a Zacks Rank of #1 (Strong Buy), while Dynatrace has a Zacks Rank of #3 (Hold). This means that SNX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
SNX currently has a forward P/E ratio of 13.00, while DT has a forward P/E of 22.52. We also note that SNX has a PEG ratio of 0.66. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DT currently has a PEG ratio of 1.62.
Another notable valuation metric for SNX is its P/B ratio of 2.19. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, DT has a P/B of 5.01.
Based on these metrics and many more, SNX holds a Value grade of B, while DT has a Value grade of D.
SNX has seen stronger estimate revision activity and sports more attractive valuation metrics than DT, so it seems like value investors will conclude that SNX is the superior option right now.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Dynatrace (DT - Free Report) Dynatrace provides an AI-powered observability and application security platform that unifies data, context, and automation to help enterprises monitor, secure, and optimize modern software environments. The platform integrates with hyperscalers (AWS, Azure, Google Cloud) and supports hybrid/on-premises systems, including mainframes. Customers primarily use SaaS, with an optional self-managed Dynatrace Managed for data sovereignty.
DT is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. DT has a Growth Style Score of A, forecasting year-over-year earnings growth of 14.7% for the current fiscal year.
For fiscal 2027, nine analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $1.95 per share. DT boasts an average earnings surprise of +7.6%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, DT should be on investors' short list.
Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Dynatrace (DT - Free Report) , which belongs to the Zacks Computers - IT Services industry.
When looking at the last two reports, this software intellegence company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 6.22%, on average, in the last two quarters.
For the most recent quarter, Dynatrace was expected to post earnings of $0.39 per share, but it reported $0.41 per share instead, representing a surprise of 5.13%. For the previous quarter, the consensus estimate was $0.41 per share, while it actually produced $0.44 per share, a surprise of 7.32%.
Price and EPS Surprise
For Dynatrace, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Dynatrace currently has an Earnings ESP of +0.67%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
BOSTON--(BUSINESS WIRE)--Dynatrace (NYSE: DT), the leading AI-powered observability platform, today announced its intent to pursue FedRAMP High authorization and expanded government security standards. This effort is part of Dynatrace's broader public sector strategy, building on its established FedRAMP Moderate-Impact Authorization. This strategic direction reflects Dynatrace's commitment to supporting U.S. federal agencies, state and local government agencies, defense and intelligence organiz.
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.
Dynatrace (DT - Free Report) ended the recent trading session at $44.24, demonstrating a +2.01% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 1.18%. On the other hand, the Dow registered a gain of 0.59%, and the technology-centric Nasdaq increased by 2.07%.
The software intellegence company's stock has climbed by 1.83% in the past month, exceeding the Computer and Technology sector's loss of 5.33% and the S&P 500's loss of 2.9%.
Investors will be eagerly watching for the performance of Dynatrace in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.45, marking a 7.14% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $549.3 million, up 15.07% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.95 per share and a revenue of $2.33 billion, indicating changes of +14.71% and +15.23%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Dynatrace. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Dynatrace boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Dynatrace is presently being traded at a Forward P/E ratio of 22.29. This expresses a premium compared to the average Forward P/E of 12.8 of its industry.
We can additionally observe that DT currently boasts a PEG ratio of 1.6. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Computers - IT Services industry stood at 1.01 at the close of the market yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 36% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Dynatrace (DT) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.
Investors with an interest in Computers - IT Services stocks have likely encountered both TD SYNNEX (SNX) and Dynatrace (DT). But which of these two companies is the best option for those looking for undervalued stocks?
AI workloads triggered a 93% surge in log and telemetry volume, while teams rely on an average of seven different tools, forcing manual correlation that doesn’t scale
BOSTON--(BUSINESS WIRE)--Dynatrace (NYSE: DT), the leading AI-powered observability platform, today released findings from its new research, The State of Log Management 2026 report, revealing that the rapid growth of AI workloads is pushing traditional log management approaches to their limits. Modern logs have become critical to understanding, validating, and securing AI-driven decisions, helping organizations ensure reliability, compliance, and performance at scale. However, the volume and complexity of AI telemetry are overwhelming legacy tools, making it harder for teams to keep AI systems explainable, trustworthy, and production ready. As a result, enterprises must rethink how they manage and analyze telemetry data to maintain visibility, control costs, and support AI at scale.
Key findings from the report include:
AI workloads have driven a 93% increase in log volume over the last 12 months. Organizations use an average of seven different tools to manage logs and telemetry. 80% say turning telemetry into actionable insights is negatively impacting customer experience and delaying AI initiatives. Organizations exclude an average of 86% of log data to manage costs and system limitations. Teams spend nearly $2.5 million annually on logging solutions. Nearly three-quarters say AI workloads require a platform-based approach to log management. 81% believe log ingestion and processing must be open and automated for real-time analysis. According to a global study of 450 senior technology leaders, this surge in data, combined with fragmented tools, is making it increasingly difficult for teams to detect issues, secure AI systems, and extract timely insights. Organizations are forced into manual, time-consuming workflows as they compare insights across systems, slowing time to insight and limiting their ability to move AI initiatives from pilot to production.
AI growth pushes traditional log management to breaking point
Respondents estimate they spend an average of nearly $2.5 million annually on logging solutions, including log ingestion, management, storage, indexing, rehydration, and querying. At the same time, logs are a key component for understanding and securing AI systems. To manage rising costs and system limitations using traditional methods, many organizations are forced to limit the amount of telemetry they ingest or retain.
Nearly half of organizations report discarding or not collecting logs, excluding an average of 86% of log data from ingestion, storage, or analysis to manage cost and system limitations. These challenges are most pronounced in environments that rely on fragmented or log‑centric approaches, rather than a unified observability platform designed to handle AI‑scale telemetry.
“AI is accelerating enterprise innovation, but most logging systems were never built for the scale, speed, or complexity of AI‑driven environments,” said Mala Pillutla, Vice President of Log Management at Dynatrace. “As AI agents operate probabilistically, treating logs, metrics, traces, and events as separate signals is no longer viable. To make AI systems reliable and trustworthy, organizations need a unified, intelligent approach that brings all telemetry together in real time, enriched with deep context to drive confident decisions.”
As AI initiatives move from experimentation to production, fragmented log management from too many tools is emerging as a key barrier to reliability, trust, and operational scale.
Unified observability becomes essential to scaling AI workloads
The report underscores the need for a fundamentally new approach to log management, where logs serve as the high-fidelity foundation, unified with distributed tracing and other telemetry data to deliver real-time, context-rich insights at a massive scale.
Nearly three‑quarters of respondents say AI workloads now demand a platform‑based approach to log management, while 81% believe log ingestion and processing must be open and automated to enable real‑time analysis without rigid schemas, indexing overhead, or rehydration delays.
The real cost of observability fragmentation isn't just the infrastructure bill — it's the opportunity cost of AI initiatives that stall between pilot and production because teams can't trust their telemetry. The research shows that roughly a third of organizations are paying for redundant or underutilized observability features, and more than a quarter are burning engineering cycles just keeping multiple tools running across environments. That's capacity that should be going toward making AI workloads production-ready, not toward stitching together dashboards across numerous different tools.
Download The State of Log Management 2026 report here to explore benchmark data on how AI workloads are exploding log volume and costs, and why unified observability is now essential for reliable, trustworthy AI operations.
Methodology
The State of Log Management 2026 report is based on a global survey of 450 senior leaders and decision makers responsible for log management in enterprises with annual revenues of $750 million or more. The research was conducted by Coleman Parkes on behalf of Dynatrace in January and February of 2026.
Resources
The future of log management: New research reveals that AI workloads demand more from logs 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. To learn more about how Dynatrace can help your business, visit www.dynatrace.com, visit our blog and follow us on LinkedIn and X @dynatrace.
Curious to see how you can simplify your cloud and maximize the impact of your digital teams? Let us show you. Sign up for a 15-day Dynatrace trial.
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 Dynatrace’s capabilities and platform and the expected current and future benefits to organizations from using the Dynatrace platform. 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.
Dynatrace is rated a buy, with the market undervaluing its resilience and growth amid AI-driven SaaS concerns. DT's observability tools are increasingly critical as AI adoption amplifies digital complexity, driving sustained customer expansion and usage. FY'26 revenue grew 19% to $2.02B, FCF reached $530M, and dollar-based net retention remained robust at 110%.
Pre-Market Stock Futures: Futures are trading modestly higher after a stunning opening to the week, as all major indices rocketed higher. The announcement of a cease-fire deal with Iran, which the leaders in that country acknowledged, called for reopening the Strait of Hormuz toll-free. While details will still be worked out over the next 60 days, we are finally on track to conclude the fighting that has been ongoing since February. The tech-heavy Nasdaq was a huge winner on Monday, closing up 3.06% at 26,683, while the S&P 500 finished Monday up 1.65% at 7,554. The Dow Jones Industrial Average, which set a new all-time high, was last seen at 51,671, up 0.92%, while the small-cap-laden Russell 2000 finished the session up 0.72% at 2,973.
Treasury Bonds: Once again, as on Friday, yields were down across the entire Treasury curve as a combination of institutional buying and what was very likely short-covering pushed prices higher for government debt. Short-sellers had been leaning on Treasury debt as chatter of interest rate hikes has become louder over the last few months. Kevin Warsh, the new Federal Reserve Chairman, will hold his first meeting, and rates are expected to remain on hold. The 30-year bond closed at 4.98% on Monday, while the 10-year note was last at 4.48%.
Oil and Gas: Needless to say, oil was hammered across the board as news from Iran brought sellers out in full force. Industry pundits were quick to point out that even if the ceasefire holds and the Strait of Hormuz is reopened, that doesn’t mean a quick turnaround on oil and natural gas flows. Brent Crude closed lower by 4.24% at $83.63, while West Texas Intermediate was last seen at $81.33, down 4.18%. Natural gas was the lone winner on Monday, up 1.12% at $3.16.
Gold: Gold had a solid day, even though some of the big morning gains faded as afternoon trading kicked in; the precious metal complex still ended the day solidly higher. Gold closed trading at $4,310, up 2.17%, while Silver finished the day at $69.80, up 2.76%.
Crypto: Crypto markets roared higher Monday as a U.S.-Iran peace deal sparked a global risk-on rally across stocks, commodities, and digital assets. Bitcoin surged past $66,000 to a two-week high near $66,500, while Ethereum, Solana, and XRP jumped between 3% and 8%. The rebound added billions to the overall crypto market cap as investors welcomed easing Middle East tensions and renewed appetite for risk assets. Some have warned that the recent Bitcoin price spike could be a proverbial dead-cat bounce. At 8A EDT, Bitcoin was trading at $66,360, while Ethereum was reported at $1,793.
24/7 Wall St. reviews dozens of analyst research reports daily to identify new investment ideas for both investors and traders. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock.
Here are some of the best Wall Street analyst upgrades, downgrades, and initiations seen on Tuesday, June 16, 2026.
Upgrades: Dynatrace (NYSE: DT) | DT Price Prediction was upgraded to Buy from Neutral at UBS, which lifted the target price for the shares to $60 from $36. Extra Space Storage (NYSE: EXR) was raised to Neutral from Underperform at Bank of America, which bumped the price target to $156 from $147. Exxon Mobil (NYSE: XOM) was upgraded to Buy from Neutral at Bank of America, which has a $154 target price for the legacy energy giant. Palantir Technologies (NASDAQ: PLTR) was resumed with a Peer Perform rating, which was raised from Underperform at Wolfe Research, without a price target. W.P. Carey (NYSE: WPC) was raised to Neutral from Underperform at Bank of America, which raised the target price for the shares to $83 from $73. Downgrades: Dave & Busters (NASDAQ: PLAY) was downgraded to Hold from Buy at Benchmark, without a price target. Payoneer Global (NASDAQ: PAYO) was cut to Neutral from Buy at Citigroup, with a $7.40 per share target. Nuvei is acquiring the company for that amount in cash. Rocket Companies (NYSE: RKT) was cut to Neutral from Buy at BTIG, without a target price. Roku (NASDAQ: ROKU) was downgraded to Neutral from Overweight at JPMorgan, with a $160 target price. Fox is acquiring the company for $160 per share. Tanger Factory Outlet Centers (NYSE: SKT) was downgraded to Underperform from Neutral at Bank of America, with an unchanged price target of $38. Initiations: Emerson Electric Company (NYSE: EMR) was started with a Neutral rating at DA Davidson, with a $145 target price. Flutter Entertainment (NYSE: FLUT) was initiated with an Outperform rating at Wedbush, with a $138 target price objective.
Genuine Parts Company (NYSE: GPC) was initiated with a Buy rating at DA Davidson, with a $145 target price for the shares. nVent Electric (NYSE: NVT) was started with a Buy rating at Melius Research, with a $214 target price. Spruce Biosciences (NASDAQ: SPRB) was initiated with a Buy rating at Guggenheim, with a $123 target price.
Dynatrace (DT) remains a buy as ARR stabilizes at $2.05B, with net new ARR showing early signs of acceleration. Three levers—DPS adoption, logs growth, and large enterprise deals—are positioned to drive ARR acceleration in FY27. DT trades at a discounted 4.6x forward revenue multiple versus peers at 7.6x, despite similar growth prospects.
Dynatrace (NYSE:DT) was given a ‘Buy’ rating from UBS as the bank’s analysts initiated coverage of the observability software provider, citing industry checks that point to improving demand trends, emerging artificial intelligence-related growth opportunities and what it views as an attractive valuation.
UBS set a $60 price target on the stock after speaking with more than 10 customers, partners and industry contacts. The firm said its findings support expectations for a modest acceleration in growth, driven by strong demand for Dynatrace's core application performance monitoring (APM) offerings, growing traction in log management products and early benefits from AI adoption.
UBS based its $60 price target on roughly 24 times its calendar 2027 free cash flow estimate, which it said reflects a valuation in line with comparable software peers.
The firm expects Dynatrace's annual recurring revenue (ARR) growth to accelerate over the next several years, forecasting growth of 16%, 17% and 18% in fiscal years 2027 through 2029, respectively. Those estimates compare with Wall Street expectations for ARR growth to slow from 16% to 14% and then 13% over the same period.
UBS wrote that investor sentiment toward the stock remains cautious despite what it sees as improving fundamentals. The firm noted that Dynatrace trades at approximately 4.3 times its calendar 2027 revenue estimate and 16 times its projected free cash flow.
According to UBS, customer and partner feedback suggests a healthy demand environment. All three Dynatrace partners surveyed reported accelerating growth in their observability practices during the March and April quarters, with growth rates ranging from 18% to 21% year over year, while also pointing to a stable or improving outlook through year-end.
The firm added that observability software appears to be gaining priority within corporate IT budgets, with Dynatrace and Datadog emerging as key beneficiaries. UBS noted, however, that it found little direct overlap between the two platforms among the organizations it contacted.
Artificial intelligence was another area highlighted in the report. UBS wrote that most respondents viewed Dynatrace as a likely beneficiary of AI adoption, although the impact remains in its early stages. Growth drivers cited included increased software development activity enabled by AI, adoption of Dynatrace's AI capabilities and emerging demand for tools that monitor large language models and AI agents.
The bank’s analysts estimated AI-related spending could increase customer spending by 10% to 20% over the next two to three years, potentially adding three to five percentage points to growth, with most of the benefit expected to materialize beginning in fiscal 2028.
UBS also downplayed concerns that AI could threaten Dynatrace's competitive position. Based on its checks, the firm said customers generally viewed the platform as having a substantial technical moat and reported little interest in moving away from it. While some observability functions could potentially be replicated with AI tools, respondents cited strong returns on investment and a lack of compelling reasons to switch providers.
One concern among investors has been Dynatrace's guidance for approximately 20% net new ARR growth in fiscal 2027, compared with growth closer to 10% in the second half of fiscal 2026. UBS acknowledged the skepticism but said its industry checks suggest the target is achievable.
The analysts identified Dynatrace's fiscal first-quarter 2027 earnings report, expected in August, as the next major catalyst that could influence investor sentiment and potentially support a re-rating of the shares.
In the latest trading session, Dynatrace (DT - Free Report) closed at $41.19, marking a +1.08% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 1.65% for the day. Elsewhere, the Dow gained 0.92%, while the tech-heavy Nasdaq added 3.07%.
Heading into today, shares of the software intellegence company had gained 6.23% over the past month, outpacing the Computer and Technology sector's gain of 0.33% and the S&P 500's gain of 0.48%.
Analysts and investors alike will be keeping a close eye on the performance of Dynatrace in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.45, reflecting a 7.14% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $549.3 million, up 15.07% from the prior-year quarter.
DT's full-year Zacks Consensus Estimates are calling for earnings of $1.94 per share and revenue of $2.33 billion. These results would represent year-over-year changes of +14.12% and +15.23%, respectively.
Investors should also note any recent changes to analyst estimates for Dynatrace. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.69% upward. Dynatrace is currently a Zacks Rank #3 (Hold).
Digging into valuation, Dynatrace currently has a Forward P/E ratio of 20.97. This signifies a premium in comparison to the average Forward P/E of 14.15 for its industry.
Meanwhile, DT's PEG ratio is currently 1.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computers - IT Services industry had an average PEG ratio of 1.16 as trading concluded yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 180, placing it within the bottom 27% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
The market expects Dynatrace (DT - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on May 13, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis software intellegence company is expected to post quarterly earnings of $0.39 per share in its upcoming report, which represents a year-over-year change of +18.2%.
Revenues are expected to be $520.64 million, up 17% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Dynatrace?For Dynatrace, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.23%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Dynatrace will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Dynatrace would post earnings of $0.41 per share when it actually produced earnings of $0.44, delivering a surprise of +7.32%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Dynatrace appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Company positioned closest to the center of the Radar, underscoring its ability to deliver AI‑driven, full‑stack Kubernetes observability and automated operations at enterprise scale
BOSTON--(BUSINESS WIRE)--Dynatrace (NYSE: DT), the leading AI-powered observability platform, today announced it has been named a Leader and an Outperformer and positioned closest to the center of the 2026 GigaOm Radar for Kubernetes Observability.
As Kubernetes adoption accelerates and generative AI workloads scale in production, organizations face growing complexity across multi-cloud, hybrid, and edge architectures. Dynatrace’s leadership in the GigaOm Radar recognizes Dynatrace as one of the most complete platforms in the market, underscoring its ability to help teams understand complex Kubernetes environments with advanced automation and AI‑driven insights.
“Kubernetes has become the foundation of modern enterprise infrastructure, and the organizations running it at scale need observability that is intelligent, automated, and deeply integrated into their engineering workflows,” said Steve Tack, Chief Product Officer at Dynatrace. “This recognition reflects the trust customers place in Dynatrace to give them the insights they need to build and run their most critical cloud‑native system. By unifying observability and security with agentic AI, we are enabling teams to prevent issues, accelerate innovation, and continuously optimize their environments.”
GigaOm evaluated 20 of the top Kubernetes observability solutions, assessing vendors across key features, emerging capabilities, and business criteria that reflect real-world enterprise requirements. Dynatrace received the top score for Key Features, including automated root cause analysis, predictive analytics, log anomaly detection, and user experience monitoring.
According to GigaOm’s Chris Nelson, the author of the report, “Kubernetes observability has evolved from a supporting monitoring function into a strategic capability that directly impacts business resilience, innovation velocity, and financial performance. Dynatrace Intelligence is the industry standard for deterministic root cause analysis, providing precise answers rather than simple correlations. By mapping the entire topology of a Kubernetes environment, Dynatrace Intelligence can pinpoint the exact service or infrastructure component for an issue, eliminating the need for manual war rooms.”
A complimentary copy of the 2026 GigaOm Radar Report for Kubernetes Observability is available here.
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. To learn more about how Dynatrace can help your business, visit www.dynatrace.com, visit our blog and follow us on LinkedIn and X @dynatrace.
Curious to see how you can simplify your cloud and maximize the impact of your digital teams? Let us show you. Sign up for a 15-day Dynatrace trial.
The upcoming report from Dynatrace (DT - Free Report) is expected to reveal quarterly earnings of $0.39 per share, indicating an increase of 18.2% compared to the year-ago period. Analysts forecast revenues of $520.64 million, representing an increase of 17% year over year.
Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
Bearing this in mind, let's now explore the average estimates of specific Dynatrace metrics that are commonly monitored and projected by Wall Street analysts.
According to the collective judgment of analysts, 'Revenues- Services' should come in at $24.72 million. The estimate indicates a year-over-year change of +14.5%.
Analysts forecast 'Revenues- Subscriptions' to reach $495.94 million. The estimate points to a change of +17.1% from the year-ago quarter.
Analysts expect 'Annual Recurring Revenue (ARR)- Total' to come in at $2.06 billion. Compared to the current estimate, the company reported $1.73 billion in the same quarter of the previous year.
View all Key Company Metrics for Dynatrace here>>>
Shares of Dynatrace have experienced a change of +19.4% in the past month compared to the +11% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), DT is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Investors with an interest in Computers - IT Services stocks have likely encountered both TD SYNNEX (SNX - Free Report) and Dynatrace (DT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
TD SYNNEX and Dynatrace are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SNX is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
SNX currently has a forward P/E ratio of 14.52, while DT has a forward P/E of 21.26. We also note that SNX has a PEG ratio of 0.99. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DT currently has a PEG ratio of 1.38.
Another notable valuation metric for SNX is its P/B ratio of 2.19. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DT has a P/B of 4.46.
Based on these metrics and many more, SNX holds a Value grade of A, while DT has a Value grade of D.
SNX stands above DT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SNX is the superior value option right now.
BOSTON--(BUSINESS WIRE)--Dynatrace (NYSE: DT), the leading AI-powered observability platform, today announced financial results for the fourth quarter and full year ended March 31, 2026.
"Dynatrace delivered a strong finish to FY26, surpassing $2 billion in ARR and achieving our fourth consecutive quarter of 16% constant currency ARR growth,” said Rick McConnell, CEO of Dynatrace. “In an AI‑first world, observability has become mission critical to a vastly higher percentage of workloads. Customers are choosing Dynatrace for our end‑to‑end platform, which serves as both the intelligence engine for deterministic AI and contextual analytics, as well as the control plane to coordinate agentic action. By enabling system resilience and AI reliability, Dynatrace is helping customers drive more autonomous operations and optimal business outcomes. As we look ahead, our objective is to accelerate ARR growth while delivering balanced growth and profitability."
“We significantly increased the pace of our share buyback in the fourth quarter, repurchasing $224 million of Dynatrace stock,” said Jim Benson, Chief Financial Officer. “This uptick reflects our conviction in Dynatrace’s operational momentum, long term growth and cash flow trajectory, and the underlying value of our shares. Through our disciplined capital allocation approach and strong balance sheet, we will continue investing in innovation and growth while delivering value to shareholders.”
All growth rates are compared to the fourth quarter and full year fiscal 2025 ended March 31, 2025 unless otherwise noted.
Fourth Quarter Fiscal 2026 Financial Highlights:
Total ARR of $2,054 million, an increase of 18%, or 16% on a constant currency basis Total revenue of $532 million, an increase of 19%, or 16% on a constant currency basis Subscription revenue of $506 million, an increase of 19%, or 16% on a constant currency basis GAAP income from operations of $37 million and non-GAAP income from operations of $143 million GAAP net income per share of $0.06 and non-GAAP net income per share of $0.41, on a dilutive basis Full Year Fiscal 2026 Financial Highlights:
Total revenue of $2,018 million, an increase of 19%, or 17% on a constant currency basis Subscription revenue of $1,930 million, an increase of 19%, or 17% on a constant currency basis GAAP income from operations of $245 million and non-GAAP income from operations of $592 million GAAP net income per share of $0.54 and non-GAAP net income per share of $1.70, on a dilutive basis GAAP operating cash flow of $562 million and free cash flow of $529 million Business Highlights:
Ongoing traction in go-to-market strategy resulted in an increase in average deal size. Dynatrace closed a record 22 deals greater than $1 million in annual contract value (ACV) in the fourth quarter, nine of which were new logos. Log management remained the fastest growing major product category, with Q4 consumption continuing to grow more than 100% year-over-year. Enhanced the company's offerings through two acquisitions: DevCycle, a feature management platform on the OpenFeature standard that helps developers, site reliability engineers, and platform teams bring progressive delivery for AI-native applications directly into the Dynatrace platform. Bindplane, a company whose open-standards-based telemetry pipeline capabilities combined with AI-powered observability gives customers greater access, flexibility, and control of their logs, metrics, and application data. Surpassed $1 billion in AWS Marketplace sales, a key indicator of hyperscaler engagement. Expanded the Dynatrace Model Context Protocol (MCP) server as a connector for Anthropic's Claude Code, Cowork, and Chat to bring observability and security context into every Claude session. And extended integration with GitHub Advanced Security to share the runtime context of monitored Kubernetes environments with developers and security teams. Recognized as a Customers’ Choice in the 2025 Gartner Peer Insights Voice of the Customer for Observability Platforms report.1 Share Repurchase Program
During the fourth quarter of fiscal 2026, Dynatrace spent $224 million to repurchase 5.9 million shares at an average price of $37.71. Dynatrace completed its initial $500 million share repurchase program, and $151 million of purchases in the fourth quarter were under its new $1 billion program announced in February 2026. Fourth Quarter 2026 Financial Highlights
(Unaudited – In thousands, except per share data)
Three Months Ended March 31,
2026
2025
Annual recurring revenue (ARR):
Total ARR
$
2,053,555
$
1,734,164
Year-over-Year Increase
18
%
Year-over-Year Increase - constant currency (*)
16
%
Revenue:
Total revenue
$
531,716
$
445,165
Year-over-Year Increase
19
%
Year-over-Year Increase - constant currency (*)
16
%
Subscription revenue
$
505,754
$
423,570
Year-over-Year Increase
19
%
Year-over-Year Increase - constant currency (*)
16
%
GAAP Financial Measures:
GAAP income from operations
$
37,342
$
42,914
GAAP operating margin
7
%
10
%
GAAP net income
$
17,416
$
39,304
GAAP net income per share - diluted
$
0.06
$
0.13
GAAP shares outstanding - diluted
298,925
304,354
Net cash provided by operating activities
$
226,361
$
162,790
Net cash provided by operating activities as a percent of revenue
43
%
37
%
Non-GAAP Financial Measures (*):
Non-GAAP income from operations
$
142,576
$
117,887
Non-GAAP operating margin
27
%
26
%
Non-GAAP net income
$
123,967
$
99,047
Non-GAAP net income per share - diluted
$
0.41
$
0.33
Non-GAAP shares outstanding - diluted
298,925
304,354
Free Cash Flow
$
212,403
$
145,528
Free Cash Flow margin
40
%
33
%
Full Year 2026 Financial Highlights
(Unaudited – In thousands, except per share data)
Year Ended March 31,
2026
2025
Revenue:
Total revenue
$
2,018,387
$
1,698,683
Year-over-Year Increase
19
%
Year-over-Year Increase - constant currency (*)
17
%
Subscription revenue
$
1,929,722
$
1,622,163
Year-over-Year Increase
19
%
Year-over-Year Increase - constant currency (*)
17
%
GAAP Financial Measures:
GAAP income from operations
$
245,387
$
179,433
GAAP operating margin
12
%
11
%
GAAP net income (**)
$
162,669
$
483,684
GAAP net income per share - diluted (**)
$
0.54
$
1.59
GAAP shares outstanding - diluted
303,727
303,602
Net cash provided by operating activities
$
561,850
$
459,419
Net cash provided by operating activities as a percent of revenue
28
%
27
%
Non-GAAP Financial Measures (*):
Non-GAAP income from operations
$
591,929
$
493,540
Non-GAAP operating margin
29
%
29
%
Non-GAAP net income
$
517,641
$
422,313
Non-GAAP net income per share - diluted
$
1.70
$
1.39
Non-GAAP shares outstanding - diluted
303,727
303,602
Free Cash Flow
$
529,483
$
430,617
Free Cash Flow margin
26
%
25
%
* For additional information, please see the "Non-GAAP Financial Measures" and "Definitions - Non-GAAP and Other Metrics" sections of this press release.
** During fiscal 2025, Dynatrace completed an intra-entity asset transfer of the global economic rights of intellectual property (IP) from a wholly-owned U.S. subsidiary to a wholly-owned Swiss subsidiary, more closely aligning IP rights with business operations. The transfer generated an income tax benefit of $320.9 million, or $1.06 per share on a dilutive basis.
Financial Outlook
Based on information available as of May 13, 2026, Dynatrace is issuing guidance for the first quarter and full year fiscal 2027 in the table below. Based on foreign exchange rates as of April 30, 2026, the foreign exchange tailwind relative to constant currency is expected to be approximately $10 million on ARR and $15 million on revenue for fiscal 2027. This guidance also excludes the impact of any share repurchases during fiscal 2027.
Growth rates for ARR, Total revenue, and Subscription revenue are presented in constant currency to provide better visibility into the underlying growth of the business.
All growth rates are compared to the first quarter and full year of fiscal 2026 ended March 31, 2026 unless otherwise noted.
(In millions, except per share data)
First Quarter
Fiscal 2027
Full Year
Fiscal 2027
ARR
-
$2,382 - $2,402
As reported
-
16% - 17%
Constant currency
-
15.5% - 16.5%
Total revenue
$547 - $551
$2,317 - $2,335
As reported
15%
15% - 16%
Constant currency
13% - 14%
14% - 15%
Subscription revenue
$523 - $527
$2,217 - $2,235
As reported
14% - 15%
15% - 16%
Constant currency
13% - 14%
14% - 15%
Non-GAAP income from operations
$150 - $154
$682 - $690
Non-GAAP operating margin
27.5% - 28%
29.5%
Non-GAAP net income
$130 - $134
$584 - $594
Non-GAAP net income per diluted share
$0.44 - $0.45
$1.93 - $1.95
Diluted weighted average shares outstanding
298 - 299
302 - 304
Free cash flow
-
$613 - $620
Free cash flow margin
-
26.5%
Conference Call and Webcast Information
Dynatrace will host a conference call and live webcast to discuss its results and business outlook at 8:00 a.m. Eastern Time today, May 13, 2026. To access the conference call from the U.S. and Canada, dial (866) 405-1247, or internationally, dial (201) 689-8045 with event confirmation #: 13760309. The call will also be available live via webcast on the company’s website, ir.dynatrace.com.
An audio replay of the call will also be available until 11:59 p.m. Eastern Time on August 13, 2026 by dialing (877) 660-6853 from the U.S. or Canada, or for international callers by dialing (201) 612-7415 and entering event confirmation #: 13760309. In addition, an archived webcast will be available at ir.dynatrace.com.
We announce material financial information to our investors using our Investor Relations website, press releases, SEC filings and public conference calls and webcasts. We also use these channels to disclose information about the company, our planned financial and other announcements, attendance at upcoming investor and industry conferences, and for complying with our disclosure obligations under Regulation FD.
Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in accordance with GAAP, this press release and the accompanying tables contain certain non-GAAP financial measures as defined by Regulation G, including non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share, free cash flow, and free cash flow margin. We also use or discuss non-GAAP financial measures in conference calls, slide presentations and webcasts.
We use these non-GAAP financial measures for financial and operational decision-making purposes, and as a means to evaluate period-to-period comparisons and liquidity. We believe that these non-GAAP financial measures provide useful information about our operating results, enhance the overall understanding of past financial performance and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making.
The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Our non-GAAP financial measures may not provide information that is directly comparable to similarly titled metrics provided by other companies.
Non-GAAP financial measures are defined in this press release and the tables included in this press release include reconciliations of historical non-GAAP financial measures to their most directly comparable GAAP measures.
We also include non-GAAP financial measures in our financial outlook included in this press release. Reconciliations of forward-looking non-GAAP income from operations, non-GAAP net income, non-GAAP net income per diluted share, and free cash flow guidance to the most directly comparable GAAP measures are not available without unreasonable efforts due to the high variability, complexity, and low visibility with respect to the charges excluded from these non-GAAP measures; in particular, the measures and effects of share-based compensation expense, employer taxes and tax deductions specific to equity compensation awards that are directly impacted by future hiring, turnover and retention needs, as well as unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.
Definitions - Non-GAAP and Other Metrics
Annual Recurring Revenue (ARR) is defined as the daily revenue of all subscription agreements that are actively generating revenue as of the last day of the reporting period multiplied by 365. We exclude from our calculation of ARR any revenues derived from month-to-month agreements and/or product usage overage billings.
Constant Currency amounts for ARR, Total revenue, and Subscription revenue are presented to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign exchange rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year.
Non-GAAP Income from Operations is defined as GAAP income from operations adjusted for the following items: share-based compensation; employer payroll taxes on employee stock transactions; amortization of intangibles; transaction, restructuring and other non-recurring or unusual items that may arise from time to time. The related Non-GAAP Operating Margin is non-GAAP income from operations expressed as a percentage of total revenue.
Non-GAAP Net Income is defined as GAAP net income adjusted for the following items: income tax expense/benefit; non-GAAP effective cash taxes; net interest expense and income; net cash received from and paid for interest; share-based compensation; employer payroll taxes on employee stock transactions, amortization of intangibles; gains and losses on currency translation; and transaction, restructuring and other non-recurring or unusual items that may arise from time to time. Non-GAAP net income per diluted share is calculated as non-GAAP net income divided by the diluted weighted average shares outstanding used to compute GAAP net income per diluted share.
Free Cash Flow is defined as the net cash provided by or used in operating activities less capital expenditures, reflected as purchase of property and equipment and capitalized software additions in our financial statements. The related margin is free cash flow expressed as a percentage of total revenue.
About Dynatrace
Dynatrace (NYSE: DT) 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. To learn more about Dynatrace, visit www.dynatrace.com, visit our blog and follow us on LinkedIn and X @dynatrace.
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 the company's objective to accelerate ARR growth while delivering balanced growth and profitability, the company's plans to invest in innovation and growth while delivering value to shareholders, the expected and current benefits that we believe organizations receive from using the Dynatrace platform and offerings of our partners and other companies with which we collaborate and integrate, and our financial and business outlook, including our financial guidance for the first quarter and full year of fiscal 2027. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as “will,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” or 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. Furthermore, 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, without limitation, our ability to maintain our revenue growth rates in future periods; market adoption of our product offerings; continued demand for, and spending on, our solutions; our ability to innovate and develop solutions that meet customer needs as cloud and AI workloads grow rapidly; the ability of our platform and solutions to effectively interoperate with customers’ IT infrastructures; our ability to acquire new customers and retain and expand our relationships with existing customers; our ability to expand our sales and marketing capabilities; our ability to compete; our ability to maintain successful relationships with partners; security breaches, other security incidents and any real or perceived errors, failures, defects or vulnerabilities in our solutions; our ability to protect our intellectual property; our ability to hire and retain necessary qualified employees to grow our business and expand our operations; our ability to successfully complete acquisitions and to integrate newly acquired businesses and offerings; the effect on our business of the macroeconomic environment, associated global economic conditions and geopolitical disruption; and other 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 as a result of new information, future events or otherwise.
DYNATRACE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - In thousands, except per share data)
Three Months Ended March 31,
Twelve Months Ended March 31,
2026
2025
2026
2025
Revenue:
Subscription
$
505,754
$
423,570
$
1,929,722
$
1,622,163
Service
25,962
21,595
88,665
76,520
Total revenue
531,716
445,165
2,018,387
1,698,683
Cost of revenue:
Cost of subscription
77,356
63,265
284,611
233,299
Cost of service
23,112
21,095
84,105
73,631
Amortization of acquired technology
927
734
3,488
13,262
Total cost of revenue
101,395
85,094
372,204
320,192
Gross profit
430,321
360,071
1,646,183
1,378,491
Operating expenses:
Research and development
130,579
103,285
474,312
384,572
Sales and marketing
183,442
161,797
690,489
605,599
General and administrative
60,413
52,062
217,414
195,347
Amortization of other intangibles
20
13
56
13,540
Impairment of long-lived assets
18,525
—
18,525
—
Total operating expenses
392,979
317,157
1,400,796
1,199,058
Income from operations
37,342
42,914
245,387
179,433
Interest income, net
10,111
10,930
47,731
48,281
Other (expense) income, net
(638
)
1,860
6,643
(4,285
)
Income before income taxes
46,815
55,704
299,761
223,429
Income tax (expense) benefit
(29,399
)
(16,400
)
(137,092
)
260,255
Net income
$
17,416
$
39,304
$
162,669
$
483,684
Net income per share:
Basic
$
0.06
$
0.13
$
0.54
$
1.62
Diluted
$
0.06
$
0.13
$
0.54
$
1.59
Weighted average shares outstanding:
Basic
297,544
299,441
300,102
298,384
Diluted
298,925
304,354
303,727
303,602
SHARE-BASED COMPENSATION
Three Months Ended March 31,
Twelve Months Ended March 31,
2026
2025
2026
2025
Cost of revenue
$
9,619
$
9,659
$
40,276
$
36,924
Research and development
28,371
26,097
114,110
100,866
Sales and marketing
19,987
19,855
84,480
77,336
General and administrative
15,022
14,593
60,760
56,577
Total share-based compensation expense
$
72,999
$
70,204
$
299,626
$
271,703
DYNATRACE, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited - In thousands, except share data)
March 31,
2026
2025
Assets
Current assets:
Cash and cash equivalents
$
1,097,220
$
1,017,039
Short-term marketable securities
74,881
96,189
Accounts receivable, net
710,200
624,437
Deferred contract costs, current
127,495
109,895
Prepaid expenses and other current assets
113,651
83,901
Total current assets
2,123,447
1,931,461
Long-term marketable securities
51,908
51,648
Property and equipment, net
72,993
61,522
Operating lease right-of-use asset, net
139,285
67,479
Goodwill
1,350,256
1,336,435
Intangible assets, net
22,850
25,534
Deferred tax assets, net
508,742
529,550
Deferred contract costs, non-current
113,111
95,297
Other assets
33,133
40,752
Total assets
$
4,415,725
$
4,139,678
Liabilities and shareholders' equity
Current liabilities:
Accounts payable
$
2,728
$
27,286
Accrued expenses, current
302,260
252,503
Deferred revenue, current
1,241,488
1,087,518
Operating lease liabilities, current
22,588
13,979
Total current liabilities
1,569,064
1,381,286
Deferred revenue, non-current
53,387
50,989
Accrued expenses, non-current
38,205
24,452
Operating lease liabilities, non-current
141,736
61,384
Deferred tax liabilities
1,943
419
Total liabilities
1,804,335
1,518,530
Shareholders' equity:
Common shares, $0.001 par value, 600,000,000 shares authorized, 294,652,951 and 299,813,048 shares issued and outstanding at March 31, 2026 and 2025, respectively
295
300
Additional paid-in capital
2,199,494
2,370,563
Retained earnings
447,596
284,927
Accumulated other comprehensive loss
(35,995
)
(34,642
)
Total shareholders' equity
2,611,390
2,621,148
Total liabilities and shareholders' equity
$
4,415,725
$
4,139,678
DYNATRACE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - In thousands)
Three Months Ended March 31,
Twelve Months Ended March 31,
2026
2025
2026
2025
Cash flows from operating activities:
Net income
$
17,416
$
39,304
$
162,669
$
483,684
Adjustments to reconcile net income to cash provided by operations:
Depreciation
4,702
5,385
18,446
19,236
Amortization
1,462
1,265
5,613
28,868
Share-based compensation
72,999
70,204
299,626
271,703
Deferred income taxes
6,658
(14,147
)
25,132
(392,942
)
Impairment of long-lived assets
18,525
—
18,525
—
Other
989
(2,100
)
(6,928
)
2,035
Net change in operating assets and liabilities:
Accounts receivable
(245,159
)
(228,277
)
(77,127
)
(24,026
)
Deferred contract costs
(7,203
)
(11,613
)
(31,057
)
(14,648
)
Prepaid expenses and other assets
(24,981
)
(15,020
)
(15,977
)
(36,593
)
Accounts payable and accrued expenses
56,344
59,142
25,896
31,534
Operating leases, net
978
(665
)
2,434
(231
)
Deferred revenue
323,631
259,312
134,598
90,799
Net cash provided by operating activities
226,361
162,790
561,850
459,419
Cash flows from investing activities:
Purchase of property and equipment
(13,958
)
(14,566
)
(32,173
)
(26,106
)
Capitalized software additions
—
(2,696
)
(194
)
(2,696
)
Acquisition of businesses, net of cash acquired
(6,000
)
—
(6,000
)
(100
)
Purchases of marketable securities
(11,448
)
(37,566
)
(120,306
)
(145,555
)
Proceeds from sales and maturities of marketable securities
39,847
36,997
143,729
105,142
Other
(750
)
—
(750
)
—
Net cash provided by (used in) investing activity
7,691
(17,831
)
(15,694
)
(69,315
)
Cash flows from financing activities:
Proceeds from employee stock purchase plan
—
—
24,390
21,159
Proceeds from exercise of stock options
1,786
6,092
6,487
20,995
Repurchases of common stock
(223,675
)
(42,518
)
(478,708
)
(172,618
)
Taxes paid related to net share settlement of equity awards
(2,211
)
(2,620
)
(21,845
)
(18,958
)
Other
(552
)
(552
)
(4,418
)
(2,208
)
Net cash used in financing activities
(224,652
)
(39,598
)
(474,094
)
(151,630
)
Effect of exchange rates on cash and cash equivalents
(3,714
)
4,196
8,119
(418
)
Net increase in cash and cash equivalents
5,686
109,557
80,181
238,056
Cash and cash equivalents, beginning of period
1,091,534
907,482
1,017,039
778,983
Cash and cash equivalents, end of period
$
1,097,220
$
1,017,039
$
1,097,220
$
1,017,039
DYNATRACE, INC.
GAAP to Non-GAAP Reconciliations
(Unaudited - In thousands, except percentages)
Three Months Ended March 31,
Twelve Months Ended March 31,
2026
2025
2026
2025
Non-GAAP cost of revenue:
Cost of revenue
$
101,395
$
85,094
$
372,204
$
320,192
Share-based compensation
(9,619
)
(9,659
)
(40,276
)
(36,924
)
Employer payroll taxes on employee stock transactions
(489
)
(661
)
(2,458
)
(2,447
)
Amortization of intangibles
(927
)
(734
)
(3,488
)
(13,262
)
Transaction, restructuring, and other
(1,475
)
—
(1,475
)
—
Non-GAAP cost of revenue
$
88,885
$
74,040
$
324,507
$
267,559
Non-GAAP gross profit:
Gross profit
$
430,321
$
360,071
$
1,646,183
$
1,378,491
Share-based compensation
9,619
9,659
40,276
36,924
Employer payroll taxes on employee stock transactions
489
661
2,458
2,447
Amortization of intangibles
927
734
3,488
13,262
Transaction, restructuring, and other
1,475
—
1,475
—
Non-GAAP gross profit
$
442,831
$
371,125
$
1,693,880
$
1,431,124
GAAP gross margin
81
%
81
%
82
%
81
%
Non-GAAP gross margin
83
%
83
%
84
%
84
%
Non-GAAP operating expenses:
Operating expenses
$
392,979
$
317,157
$
1,400,796
$
1,199,058
Share-based compensation
(63,380
)
(60,545
)
(259,350
)
(234,779
)
Employer payroll taxes on employee stock transactions
(2,719
)
(3,309
)
(12,834
)
(12,997
)
Amortization of intangibles
(20
)
(13
)
(56
)
(13,540
)
Transaction, restructuring, and other
(26,605
)
(52
)
(26,605
)
(158
)
Non-GAAP operating expenses
$
300,255
$
253,238
$
1,101,951
$
937,584
Non-GAAP income from operations:
Income from operations
$
37,342
$
42,914
$
245,387
$
179,433
Share-based compensation
72,999
70,204
299,626
271,703
Employer payroll taxes on employee stock transactions
3,208
3,970
15,292
15,444
Amortization of intangibles
947
747
3,544
26,802
Transaction, restructuring, and other
28,080
52
28,080
158
Non-GAAP income from operations
$
142,576
$
117,887
$
591,929
$
493,540
GAAP operating margin
7
%
10
%
12
%
11
%
Non-GAAP operating margin
27
%
26
%
29
%
29
%
DYNATRACE, INC.
GAAP to Non-GAAP Reconciliations
(Unaudited - In thousands, except per share data)
Three Months Ended March 31,
Twelve Months Ended March 31,
2026
2025
2026
2025
Non-GAAP net income:
Net income
$
17,416
$
39,304
162,669
483,684
Income tax expense (benefit)
29,399
16,400
137,092
(260,255
)
Non-GAAP effective cash tax
(28,223
)
(29,616
)
(117,584
)
(118,154
)
Interest income, net
(10,111
)
(10,930
)
(47,731
)
(48,281
)
Cash received from interest, net
9,614
10,776
43,296
46,927
Share-based compensation
72,999
70,204
299,626
271,703
Employer payroll taxes on employee stock transactions
Dynatrace (DT - Free Report) came out with quarterly earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.39 per share. This compares to earnings of $0.33 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +7.94%. A quarter ago, it was expected that this software intellegence company would post earnings of $0.41 per share when it actually produced earnings of $0.44, delivering a surprise of +7.32%.
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 $531.72 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.13%. This compares to year-ago revenues of $445.17 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 lost about 9.5% since the beginning of the year versus the S&P 500's gain of 8.1%.
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 $0.45 on $546.7 million in revenues for the coming quarter and $1.91 on $2.3 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 43% 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.
Nutanix (NTNX - Free Report) , another stock in the same industry, has yet to report results for the quarter ended April 2026. The results are expected to be released on May 27.
This enterprise cloud platform services provider is expected to post quarterly earnings of $0.35 per share in its upcoming report, which represents a year-over-year change of -16.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Nutanix's revenues are expected to be $686 million, up 7.4% from the year-ago quarter.
Dynatrace (DT - Free Report) reported $531.72 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 19.4%. EPS of $0.42 for the same period compares to $0.33 a year ago.
The reported revenue represents a surprise of +2.13% over the Zacks Consensus Estimate of $520.64 million. With the consensus EPS estimate being $0.39, the EPS surprise was +7.94%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Dynatrace performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Annual Recurring Revenue (ARR)- Total: $2.05 billion compared to the $2.06 billion average estimate based on eight analysts.Revenues- Services: $25.96 million versus $24.73 million estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +20.2% change.Revenues- Subscriptions: $505.75 million versus $495.94 million estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +19.4% change.View all Key Company Metrics for Dynatrace here>>>
Shares of Dynatrace have returned +17.9% over the past month versus the Zacks S&P 500 composite's +8.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Dynatrace DT is experiencing a significant decline in its stock price following the release of its Q4 earnings report and guidance for FY27. Although the company reported results that exceeded expectations, the market reaction has been negative. Key highlights include:
Q4 Performance: Adjusted EPS rose to $0.41, beating estimates by $0.02, while revenue increased by 19.4% year-over-year to $531.7 million. FY27 Guidance: The company provided EPS and revenue forecasts above consensus, anticipating an ARR growth of 15.5-16.5%. Enterprise Momentum: Dynatrace achieved a record 22 deals exceeding $1 million in annual contract value (ACV), including nine new-logo seven-figure contracts. Management noted a rising demand for observability vendor consolidation as AI workloads complicate infrastructure. ARR Stability: ARR growth remained steady at 16% for the fourth consecutive quarter, with over 75% of ARR now coming from DPS adoption. Gross retention rates stayed in the mid-90% range, while net revenue retention (NRR) held at 110%. AI Adoption: The trend of AI adoption is strengthening, with over 850 customers using Dynatrace for monitoring AI and large language model (LLM) workloads, and more than 500 utilizing agentic AI capabilities. Log management consumption surged over 100% year-over-year, exceeding $100 million in annualized consumption. Profitability: The company reported a FY26 operating margin of 29% and generated free cash flow of $529 million, representing 26% of revenue. Additionally, Dynatrace repurchased $479 million of its stock during FY26. Market Reaction: Despite the strong FY27 guidance, investors may have anticipated a more pronounced ARR acceleration, especially in light of management's optimistic commentary on AI. DT also foresees a temporary gross margin headwind due to increased cloud hosting costs associated with higher platform consumption.In summary, Dynatrace DT has showcased operational strength, highlighted by impressive earnings, substantial enterprise deal activity, and a surge in AI adoption. However, the stock's decline reflects investor concerns regarding the pace of ARR growth and net expansion trends. Nevertheless, DT continues to position itself as a crucial player in the observability and AI operations market, with innovations like Grail and Davis AI potentially driving long-term growth.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
3 Stocks Flashing Rare Buy Signals After the Market's Wildest MonthDynatrace NYSE: DT reported a stronger finish to fiscal 2026, with executives emphasizing steady annual recurring revenue growth, expanding consumption of its log management products and growing demand tied to artificial intelligence and cloud complexity.
On the company’s fourth-quarter and full-year earnings call, Chief Executive Officer Rick McConnell said Dynatrace surpassed $2 billion in annual recurring revenue, or ARR, and delivered its fourth consecutive quarter of 16% ARR growth. He said the company also saw log management annualized consumption rise to “well over $100 million,” growing more than 100% annually.
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DTE’s Stargate Deal Turns Power Into Profits“Dynatrace delivered a strong finish to fiscal 2026, marked by meaningful scale, durable execution, and continued innovation,” McConnell said.
ARR Tops $2 Billion as New Logo Activity Improves Chief Financial Officer Jim Benson said ARR ended the year at $2.05 billion, up 16% year over year in constant currency. He said fourth-quarter net new ARR, adjusted for foreign exchange movements, was $81 million, near the high end of the company’s guidance. For the full fiscal year, net new ARR was $277 million, representing 12% growth.
Amid the "SaaS Apocalypse," These 3 Names Are Boosting BuybacksBenson said Dynatrace added 126 new logos in the fourth quarter, including a record nine seven-figure new customer lands. The average land size in the quarter remained above $200,000, and new logo ARR rose 43% in the quarter and 30% in the second half of the year.
The company also highlighted larger strategic deals. McConnell said Dynatrace recorded 22 deals with incremental annual contract value of more than $1 million in the fourth quarter. He attributed the large-deal momentum to enterprise customers seeking to consolidate fragmented monitoring and observability tools.
“There is significant interest in integrating fragmented tools to save money,” McConnell said during the question-and-answer portion of the call. He added that Dynatrace’s go-to-market changes have helped the company build deeper relationships with C-level decision-makers.
Revenue, Margins and Cash Flow Fourth-quarter total revenue was $532 million, while subscription revenue was $506 million. Both increased 16% and exceeded the high end of Dynatrace’s guidance range by 200 basis points, Benson said.
For the full fiscal year, total revenue was $2.02 billion and subscription revenue was $1.93 billion, both up 17%. Non-GAAP operating margin was 29% for the year, and non-GAAP net income was $518 million, or $1.70 per diluted share.
Free cash flow totaled $529 million, or 26% of revenue. Benson said pre-tax free cash flow was 32% of revenue, noting that Dynatrace pays more cash taxes than many software peers because of its GAAP profitability.
The company also increased share repurchases. Benson said Dynatrace bought back 5.9 million shares for $224 million in the fourth quarter and 11.4 million shares for $479 million during the fiscal year. As of March 31, Dynatrace had about $849 million remaining under its $1 billion share repurchase authorization.
AI and Platform Consumption Remain Central Themes McConnell said observability is becoming more important as enterprises adopt AI systems and agentic architectures that require continuous validation, governance, auditability, cost control and security oversight. He said Dynatrace’s platform is designed to provide “answers, not guesses” through deterministic and causal insights.
McConnell described Dynatrace’s advantage as architectural rather than feature-based, pointing to three core platform components: Grail, an AI data lakehouse; Smartscape, a real-time topology graph; and Dynatrace Intelligence, which provides both insights and automated action.
He said more than 500 customers are deploying Dynatrace’s agentic capabilities to support autonomous operations and integrations with AI development tools such as Anthropic’s Claude Code and GitHub Copilot. He also said more than 850 customers are using Dynatrace to observe AI and large language model workloads in production.
The company also discussed recent acquisitions. McConnell said Dynatrace acquired DevCycle, a feature management company, and Bindplane, an open standards-based telemetry pipeline company, as it entered the new fiscal year. He said Bindplane should support expanded ingest from OpenTelemetry and simplify telemetry collection and routing at scale.
DPS Licensing Model Drives Broader Usage Benson said the Dynatrace Platform Subscription, or DPS, licensing model now represents more than 75% of ARR and more than 60% of the customer base. He said DPS customers are adopting the platform more broadly and consuming more than non-DPS customers.
Gross retention in the fourth quarter remained in the mid-90% range, while trailing 12-month net retention was 110%. Benson said average ARR per customer is now above $500,000 and said the company believes the long-term opportunity could be $1 million or more per customer.
In response to analyst questions, Benson said fiscal 2027 will include the largest cohort of DPS customers coming up for annual resets or renewals, creating an opportunity for expansion depending on consumption growth.
Fiscal 2027 Guidance Calls for ARR Acceleration Dynatrace guided for fiscal 2027 ARR of $2.38 billion to $2.4 billion, representing growth of 15.5% to 16.5%. The guidance implies net new ARR, adjusted for foreign exchange movements, of $320 million to $340 million, up 16% to 23% from fiscal 2026 levels.
Benson said net new ARR is expected to be modestly more weighted toward the first half of the year than historical seasonality, citing healthy forecasted pipeline coverage.
For fiscal 2027, Dynatrace expects total revenue of $2.32 billion to $2.34 billion and subscription revenue of $2.22 billion to $2.24 billion, both representing growth of 14% to 15%. The company guided for non-GAAP operating margin of about 29.5%, non-GAAP net income of $584 million to $594 million and non-GAAP earnings of $1.93 to $1.95 per diluted share.
Benson said operating expense leverage is expected to be partially offset by a 100-basis-point gross margin headwind from higher cloud hosting costs tied to platform consumption growth. He said the pressure is expected to be temporary, with gross margins beginning to recover in fiscal 2028.
For the first quarter, Dynatrace expects total revenue of $547 million to $551 million, subscription revenue of $523 million to $527 million and non-GAAP earnings of $0.44 to $0.45 per diluted share.
About Dynatrace NYSE: DTDynatrace 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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Dynatrace (DT +0.92%) stock tumbled in Wednesday's trading. The artificial intelligence (AI) analytics company's share price fell 11.4% in the session. Shares had been off as much as 16.4% but regained some ground.
Before the market opened this morning, Dynatrace published results for the fourth quarter of its 2026 fiscal year -- which ended March 31. The company actually posted sales and earnings that topped Wall Street's forecasts, but forward guidance underwhelmed the market.
Image source: Getty Images.
Fiscal Q4 beats weren't enough to lift Dynatrace In fiscal Q4, Dynatrace posted non-GAAP (adjusted) earnings of $0.41 per share on sales of $531.72 million. Adjusted earnings per share beat the average analyst estimate by $0.02, and revenue topped the consensus target by roughly $10.6 million.
Subscription revenue rose roughly 19% year over year to hit $506 million, and overall revenue was up roughly 19% compared to the prior-year quarter. Despite encouraging sales momentum, elements of management's commentary on the quarter and forward guidance caused investors to sell out of the stock.
Today's Change
(
0.92
%) $
0.37
Current Price
$
40.74
What's next for Dynatrace? Dynatrace is guiding for sales to come in between $547 million and $551 million in the current quarter, which actually came in significantly ahead of the average analyst estimate's call for sales of $548.2 million. Meanwhile, adjusted earnings are projected to be between $0.44 and $0.45 -- with that midpoint of that range falling slightly short of the average analyst estimate's call for adjusted per-share earnings of $0.45.
Dynatrace is guiding for annual recurring revenue to be between $2.3 billion and $2.4 billion this fiscal year -- up from $2.05 billion last year. At the midpoint of the guidance range, that would mean delivering annual growth of roughly 14% -- down from growth of 18% last year. The company's fiscal Q4 results and guidance weren't terrible, but they weren't enough to assuage investor concerns about competitive pressures.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Dynatrace, Inc (NYSE:DT) on Wednesday reported upbeat fourth-quarter financial results and issued first-quarter sales guidance below estimates.
Dynatrace reported quarterly earnings of 41 cents per share which beat the analyst consensus estimate of 39 cents per share. The company reported quarterly sales of $531.716 million which beat the analyst consensus estimate of $520.670 million.
Dynatrace said it sees first-quarter adjusted EPS of 44 cents to 45 cents, versus market estimates of 45 cents. The company sees sales of $547.000 million to $551.000 million, versus estimates of $552.627 million.
Dynatrace shares gained 4.1% to trade at $36.13 on Thursday.
These analysts made changes to their price targets on Dynatrace following earnings announcement.
BMO Capital analyst Keith Bachman maintained the stock with an Outperform rating and lowered the price target from $45 to $43. Barclays analyst Raimo Lenschow maintained the stock with an Overweight rating and cut the price target from $47 to $44. Considering buying DT stock? Here’s what analysts think:
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Dynatrace is a high-margin, AI-powered observability platform with $2.054 billion in ARR, strong FCF, and a valuation still below peer software names. DT's ~96% subscription revenue, 111% net retention, and $3.2 billion RPO support durability, visibility, and a real recurring-revenue base. Starboard Value, the activist investor that acquired a stake in DT recently, is seeing margin expansion, S&M efficiency, and capital return, but buybacks should be treated as an upside lever, not guaranteed.
Dynatrace delivered Q4 revenue of $531.7M (+19.4% y/y), beating estimates, with 95% recurring subscription revenue and robust free cash flow generation. Despite strong financial health, including $1.1B in cash and no debt, DT faces market concerns over ARR growth deceleration to 16%-17% and cautious FY guidance. DT's AI observability products and integration with major hyperscalers position it well to adapt, countering fears of obsolescence from AI disruption.
Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a growth stock that can live up to its true potential can be a tough task.
In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Our proprietary system currently recommends Dynatrace (DT - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
While there are numerous reasons why the stock of this software intellegence company is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Dynatrace is 20.5%, investors should actually focus on the projected growth. The company's EPS is expected to grow 13.3% this year, crushing the industry average, which calls for EPS growth of 8.7%.
Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.
Right now, year-over-year cash flow growth for Dynatrace is 8.8%, which is higher than many of its peers. In fact, the rate compares to the industry average of 8.4%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 10.7% over the past 3-5 years versus the industry average of 8.5%.
Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Dynatrace. The Zacks Consensus Estimate for the current year has surged 0.9% over the past month.
Bottom LineDynatrace has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Dynatrace is a potential outperformer and a solid choice for growth investors.
Investors interested in stocks from the Computers - IT Services sector have probably already heard of TD SYNNEX (SNX - Free Report) and Dynatrace (DT - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, TD SYNNEX has a Zacks Rank of #1 (Strong Buy), while Dynatrace has a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SNX has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
SNX currently has a forward P/E ratio of 14.57, while DT has a forward P/E of 21.08. We also note that SNX has a PEG ratio of 1.00. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DT currently has a PEG ratio of 1.52.
Another notable valuation metric for SNX is its P/B ratio of 2.2. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, DT has a P/B of 4.64.
These metrics, and several others, help SNX earn a Value grade of B, while DT has been given a Value grade of D.
SNX stands above DT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SNX is the superior value option right now.
Shares of Palantir (NASDAQ:PLTR | PLTR Price Prediction) are up 10% in Friday morning trading, changing hands near $158. The pop follows a blockbuster quarter from Dell Technologies (NYSE:DELL), reported Thursday evening, that validated a high-profile partnership the two companies unveiled earlier this month.
Even with today’s rally, Palantir stock is still down 12% year to date (YTD), so this looks more like a recovery leg than a clean breakout. The catalyst is unusual because it lives inside someone else’s earnings report rather than Palantir’s own results.
A second tailwind comes from Snowflake (NYSE:SNOW). The data cloud specialist’s Wednesday earnings report kicked off a broader software and AI platform rally that carried into Friday’s open.
Dell’s AI Server Surge Validates the Partnership Dell reported Q1 FY2027 revenue of $43.84 billion, beating estimates by 23% and growing 88% year over year (YoY). Non-GAAP EPS came in at $4.86 versus a $2.96 consensus, a 64% beat. AI-optimized server revenue jumped 757% YoY to $16.13 billion.
The company also booked $24.4 billion in AI orders during the quarter and raised full-year FY27 AI server revenue guidance to approximately $60 billion. DELL stock is up 29% today, trading near $409.
That matters for Palantir because the two companies unveiled a deep tie-up at Dell Technologies World on May 18. Palantir’s Foundry and AIP platforms are coming on-premises to the Dell AI Factory with NVIDIA (NASDAQ:NVDA), with the Ontology layer running on Dell ObjectScale and PowerFlex storage. Palantir Rubix and Apollo handle the zero-trust runtime layer, targeting sovereign, defense, and regulated workloads.
Snowflake Sparks a Broader Software Rally Snowflake reported Q1 FY27 revenue of $1.39 billion, up 34% YoY, with non-GAAP EPS of $0.39 beating by 22%. The company raised its full-year product revenue guidance to $5.84 billion, a 31% growth pace, and disclosed more than 13,600 accounts using its AI capabilities.
CEO Sridhar Ramaswamy declared that Q1 marks “a clear inflection point” in Snowflake’s AI journey, positioning the platform as “the control plane for the Agentic Enterprise.” Dynatrace (NYSE:DT) and other observability and AI platform names are riding the same wave, with DT shares up 4% Friday.
Gartner Forecast Adds a Macro Tailwind Underneath the day’s headlines sits a constructive top-down call. Gartner expects AI software spending to grow 60% to $453 billion in 2026, a forecast that frames Palantir’s AIP platform as a beneficiary of one of the largest enterprise software spending waves in years.
NVIDIA’s earlier Q1 earnings report reinforced that backdrop. CEO Jensen Huang asserted that the “buildout of AI factories, the largest infrastructure expansion in human history, is accelerating.” Palantir sits at the software layer of that exact stack, riding above Dell hardware and NVIDIA silicon.
What to Watch Palantir stock trades at a P/E ratio of 203x, so the bull case still relies on durable AI software demand and continued execution on the Dell partnership. However, the bear case argues today’s move is sympathy buying that fades once the Dell euphoria cools.
Polymarket contracts assign a 98% probability that PLTR finishes Friday in the green, with crowd targets clustered around $150 to $156 into next week. Reddit sentiment on r/WallStreetBets recovered to a 75 bullish score by Thursday evening, after collapsing earlier in the week on a viral bearish post.
Cautious investors may want to watch for whether the gains hold into the close and whether Monday’s regular session brings follow-through buying or profit-taking. The next major Palantir-specific catalyst is the company’s own earnings report, but until then the stock will likely trade as a derivative of the broader AI infrastructure tape.
