Dynatrace (NYSE:DT) Updates FY 2027 Earnings Guidance

Dynatrace (NYSE:DT) updated its FY 2027 earnings guidance on Wednesday morning. The company provided EPS guidance of 1.970-1.990 for the period, compared to the consensus EPS estimate of 1.780. The company issued revenue guidance of $2.3 billion-$2.3 billion, compared to the consensus revenue estimate of $2.3 billion. Dynatrace also updated its Q2 2027 guidance to 0.480-0.490 EPS.

Analyst Ratings Changes

A number of brokerages recently commented on DT. Rothschild & Co Redburn began coverage on Dynatrace in a report on Thursday, April 23rd. They issued a “neutral” rating and a $40.00 target price on the stock. Wolfe Research restated an “outperform” rating and set a $42.00 target price on shares of Dynatrace in a research note on Thursday, May 14th. Guggenheim lowered shares of Dynatrace from a “buy” rating to a “neutral” rating in a research report on Wednesday, May 13th. Zacks Research raised shares of Dynatrace from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 13th. Finally, William Blair initiated coverage on shares of Dynatrace in a research report on Thursday, May 21st. They set an “outperform” rating for the company. One analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, Dynatrace presently has a consensus rating of “Moderate Buy” and an average price target of $53.38.

Dynatrace Price Performance

DT traded down $2.12 on Thursday, reaching $48.74. 3,670,515 shares of the company’s stock were exchanged, compared to its average volume of 6,321,108. Dynatrace has a twelve month low of $31.64 and a twelve month high of $53.28. The stock has a market cap of $14.14 billion, a PE ratio of 90.01, a P/E/G ratio of 2.94 and a beta of 0.72. The stock’s fifty day moving average price is $43.21 and its 200-day moving average price is $39.45.

Dynatrace (NYSE:DT) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $0.48 EPS for the quarter, topping analysts’ consensus estimates of $0.45 by $0.03. The firm had revenue of $554.55 million for the quarter, compared to the consensus estimate of $550.18 million. Dynatrace had a return on equity of 10.37% and a net margin of 8.06%.The firm’s revenue was up 16.3% compared to the same quarter last year. During the same quarter last year, the business posted $0.42 earnings per share. Dynatrace has set its Q2 2027 guidance at 0.480-0.490 EPS and its FY 2027 guidance at 1.970-1.990 EPS. As a group, research analysts predict that Dynatrace will post 1.11 earnings per share for the current fiscal year.

More Dynatrace News

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Dynatrace reported adjusted earnings of $0.48 per share, above the $0.45 consensus estimate, while revenue of $554.55 million exceeded expectations of $550.18 million and increased 16.3% year over year. The company also highlighted 41% organic net new annual recurring revenue growth, supported by demand for cloud-native workloads and artificial-intelligence initiatives. Dynatrace Reports First Quarter Fiscal Year 2027 Financial Results
• Positive Sentiment: Full-year fiscal 2027 adjusted EPS guidance of $1.97-$1.99 is well above the $1.78 analyst consensus, suggesting improving profitability expectations. Second-quarter EPS guidance of $0.48-$0.49 also exceeds the $0.44 consensus. Dynatrace Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: Analyst sentiment strengthened after the report. BTIG Research raised its price target from $47 to $62 and upgraded the stock to “buy,” while Royal Bank of Canada lifted its target from $50 to $59 and assigned an “outperform” rating. Rosenblatt Securities also issued a buy rating. Analyst price-target changes Rosenblatt Securities Buy Rating
• Neutral Sentiment: Management’s second-quarter revenue outlook of $565 million-$570 million is broadly in line with expectations, while full-year revenue guidance remains approximately $2.3 billion. This indicates continued growth but not a major near-term revenue forecast increase.
• Negative Sentiment: The company slightly reduced its fiscal 2027 revenue outlook, and second-quarter revenue guidance is just below the $570.1 million consensus. With Dynatrace trading at roughly 90 times earnings, the stock’s valuation leaves limited room for execution or growth disappointments.

Hedge Funds Weigh In On Dynatrace

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Wellington Management Group LLP grew its holdings in Dynatrace by 719.3% during the third quarter. Wellington Management Group LLP now owns 7,340,127 shares of the company’s stock worth $355,629,000 after acquiring an additional 6,444,262 shares during the period. Scge Management L.P. acquired a new position in shares of Dynatrace in the 2nd quarter worth approximately $155,858,000. Alyeska Investment Group L.P. raised its holdings in shares of Dynatrace by 1,201.7% in the 4th quarter. Alyeska Investment Group L.P. now owns 2,888,249 shares of the company’s stock worth $125,177,000 after purchasing an additional 2,666,373 shares in the last quarter. Marshall Wace LLP bought a new stake in shares of Dynatrace in the 4th quarter worth approximately $71,369,000. Finally, Freestone Grove Partners LP lifted its stake in Dynatrace by 2,618.6% during the third quarter. Freestone Grove Partners LP now owns 1,429,738 shares of the company’s stock valued at $69,271,000 after purchasing an additional 1,377,148 shares during the last quarter. Hedge funds and other institutional investors own 94.28% of the company’s stock.

About Dynatrace

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.