Dynatrace (NYSE:DT) Issues Earnings Results

13 May 2026, 19:36 by Doug Wharley · The Cerbat Gem

Dynatrace (NYSE:DT – Get Free Report) posted its quarterly earnings data on Wednesday. The company reported $0.41 EPS for the quarter, topping analysts’ consensus estimates of $0.39 by $0.02, Briefing.com reports. Dynatrace had a return on equity of 9.75% and a net margin of 9.55%.The firm had revenue of $531.72 million for the quarter, compared to analyst estimates of $521.01 million. During the same quarter last year, the company earned $0.33 EPS. The company’s revenue was up 19.4% on a year-over-year basis. Dynatrace updated its FY 2027 guidance to 1.930-1.950 EPS and its Q1 2027 guidance to 0.440-0.450 EPS.

Here are the key takeaways from Dynatrace’s conference call:

Dynatrace said fiscal 2026 was a strong year, with ARR surpassing $2.05 billion and growing 16% for the fourth straight quarter, while net new ARR also turned in its first double-digit growth in three years.
The company highlighted rapid momentum in logs, which exited the year above $100 million in annualized consumption and grew more than 100% year over year, helping drive broader platform adoption.
Management emphasized its AI strategy, including Dynatrace Intelligence, domain-specific agents, and integrations with tools like Claude Code, GitHub Copilot, and ServiceNow, as key differentiators for autonomous operations and AI observability.
Dynatrace reported strong commercial execution, including record large deals and new logos, with 22 deals above $1 million ACV in Q4 and 126 new logos added, signaling continued enterprise consolidation wins.
For fiscal 2027, the company guided to ARR of $2.38 billion to $2.4 billion and expects net new ARR to accelerate, but it also noted some gross margin pressure from higher cloud hosting costs that it expects to improve in fiscal 2028.

Dynatrace Stock Down 11.4%

DT traded down $4.48 during midday trading on Wednesday, hitting $34.73. 20,775,745 shares of the company were exchanged, compared to its average volume of 6,862,608. The firm has a market capitalization of $10.36 billion, a P/E ratio of 56.93, a P/E/G ratio of 2.46 and a beta of 0.70. Dynatrace has a 1-year low of $31.64 and a 1-year high of $57.55. The firm’s 50 day moving average price is $37.14 and its 200-day moving average price is $40.59.

Dynatrace declared that its Board of Directors has approved a stock buyback program on Monday, February 9th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the company to repurchase up to 9.8% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s management believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Keefe, Bruyette & Woods upgraded Dynatrace to a “buy” rating in a research note on Monday, February 9th. KeyCorp lifted their price target on Dynatrace from $50.00 to $52.00 and gave the company an “overweight” rating in a research note on Tuesday, February 10th. Morgan Stanley decreased their price target on Dynatrace from $57.00 to $43.00 and set an “equal weight” rating on the stock in a research note on Tuesday, February 10th. The Goldman Sachs Group assumed coverage on Dynatrace in a research note on Tuesday, April 21st. They issued a “buy” rating and a $45.00 price target on the stock. Finally, BMO Capital Markets decreased their price target on Dynatrace from $56.00 to $45.00 and set an “outperform” rating on the stock in a research note on Monday, February 9th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $51.08.

Get Our Latest Research Report on Dynatrace

Dynatrace News Summary

Here are the key news stories impacting Dynatrace this week:

Positive Sentiment: Dynatrace beat fiscal Q4 earnings and revenue estimates, reporting $0.41-$0.42 EPS versus $0.39 expected and revenue of $531.7 million versus $521.0 million expected, with revenue up 19.4% year over year. Article Title
Positive Sentiment: The company guided above Wall Street expectations for both Q1 FY2027 and full-year FY2027, signaling continued demand for its AI-powered observability platform and strong ARR growth. Article Title
Neutral Sentiment: BTIG Research lowered its price target to $47 from $53 but kept a Buy rating, which still implies meaningful upside from current levels. Article Title
Neutral Sentiment: Dynatrace’s earnings call transcript and presentation may provide additional color on margins, ARR momentum, and AI-related demand, but these items are not immediate catalysts on their own. Article Title
Negative Sentiment: Guggenheim downgraded Dynatrace from Buy to Neutral, suggesting some analysts see less near-term upside after the recent run and mixed market reaction. Article Title

Insider Buying and Selling

In related news, EVP Stephen A. Mcmahon bought 3,000 shares of the business’s stock in a transaction on Tuesday, March 3rd. The shares were purchased at an average cost of $35.75 per share, with a total value of $107,250.00. Following the acquisition, the executive vice president owned 3,454 shares of the company’s stock, valued at $123,480.50. This represents a 660.79% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.57% of the company’s stock.

Institutional Investors Weigh In On Dynatrace

Several institutional investors and hedge funds have recently made changes to their positions in the business. Northwestern Mutual Wealth Management Co. boosted its position in shares of Dynatrace by 21.3% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,548 shares of the company’s stock worth $85,000 after purchasing an additional 272 shares in the last quarter. Jones Financial Companies Lllp grew its stake in shares of Dynatrace by 19.2% in the 1st quarter. Jones Financial Companies Lllp now owns 2,161 shares of the company’s stock valued at $102,000 after buying an additional 348 shares during the period. Quarry LP raised its stake in Dynatrace by 251.1% during the 4th quarter. Quarry LP now owns 2,219 shares of the company’s stock worth $96,000 after buying an additional 1,587 shares during the period. UMB Bank n.a. raised its stake in Dynatrace by 12.7% during the 4th quarter. UMB Bank n.a. now owns 3,190 shares of the company’s stock worth $138,000 after buying an additional 360 shares during the period. Finally, Arax Advisory Partners raised its stake in Dynatrace by 306.6% during the 4th quarter. Arax Advisory Partners now owns 3,253 shares of the company’s stock worth $141,000 after buying an additional 2,453 shares during the period. Institutional investors own 94.28% of the company’s stock.

Dynatrace Company Profile

(Get 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.