Dynatrace (NYSE:DT) Announces Earnings Results

Dynatrace (NYSE:DT) announced its earnings results on Wednesday. The company reported $0.48 earnings per share for the quarter, topping analysts’ consensus estimates of $0.44 by $0.04, FiscalAI reports. Dynatrace had a net margin of 8.06% and a return on equity of 10.37%. The firm had revenue of $554.55 million during the quarter, compared to analyst estimates of $549.46 million. During the same period in the prior year, the business earned $0.42 EPS. The company’s revenue for the quarter was up 16.3% compared to the same quarter last year. Dynatrace updated its Q2 2027 guidance to 0.480-0.490 EPS and its FY 2027 guidance to 1.970-1.990 EPS.

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

• Strong Q1 execution: ARR grew 17%, net new ARR increased 66% year over year (41% organically), and record new-logo growth exceeded 160%. Total and subscription revenue both surpassed the high end of guidance, while operating margin reached 29%.
• Dynatrace reported continued momentum in consumption, particularly log management, which nearly doubled to approximately $200 million in annualized consumption. More than 1,000 customers now monitor AI workloads and over 800 use agentic capabilities; AI-focused customers consume at 1.5 times the rate of other customers.
• The company raised its full-year revenue growth outlook to 14.5%-15%, increased the high end of operating-margin guidance to 29.75%, and raised non-GAAP EPS guidance to $1.97-$1.99. Management maintained its 15.5%-16.5% constant-currency ARR growth target and expressed confidence in fiscal-year ARR acceleration.
• Net retention remained at 110%, with management expecting a potential improvement in the second half as roughly 70% of DPS renewal activity occurs then and higher consumption supports expansions. Q1 and Q2 are comparatively light renewal periods, limiting near-term visibility into that upside.
• Foreign-exchange movements became a larger headwind, reducing the outlook by approximately $14 million for ARR and $4 million for revenue. CFO Jim Benson also plans to retire by the end of the fiscal year, creating a leadership transition risk despite management’s expectation of a smooth succession.

Dynatrace Stock Up 11.5%

NYSE:DT traded up $5.26 during trading hours on Wednesday, reaching $50.97. The company had a trading volume of 18,353,672 shares, compared to its average volume of 4,069,042. The firm has a market cap of $14.79 billion, a price-to-earnings ratio of 94.39, a P/E/G ratio of 2.94 and a beta of 0.72. The business’s 50-day simple moving average is $43.21 and its two-hundred day simple moving average is $39.45. Dynatrace has a twelve month low of $31.64 and a twelve month high of $53.29.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on DT shares. The Goldman Sachs Group increased their price objective on shares of Dynatrace from $45.00 to $50.00 and gave the company a “buy” rating in a research report on Thursday, June 18th. Scotiabank lowered their price objective on Dynatrace from $47.00 to $44.00 and set a “sector outperform” rating on the stock in a research note on Thursday, May 14th. BMO Capital Markets raised their target price on shares of Dynatrace from $43.00 to $50.00 and gave the company an “outperform” rating in a report on Tuesday, June 16th. KeyCorp boosted their price target on Dynatrace from $47.00 to $53.00 and gave the stock an “overweight” rating in a report on Thursday, July 16th. Finally, UBS Group upgraded shares of Dynatrace from a “neutral” rating to a “buy” rating and upped their price objective for the stock from $36.00 to $60.00 in a research report on Monday, June 15th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $50.38.

Dynatrace News Roundup

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Dynatrace reported adjusted EPS of $0.48, exceeding the $0.44 consensus estimate and rising from $0.42 a year earlier. Revenue reached $554.55 million, topping expectations of $549.46 million and increasing 16.3% year over year. Dynatrace earnings results
• Positive Sentiment: Management cited 41% organic net new annual recurring revenue growth, signaling strong customer demand and improving momentum in its observability platform. Dynatrace fiscal first-quarter results
• Positive Sentiment: Fiscal 2027 EPS guidance of $1.97-$1.99 is well above the approximately $1.78 analyst consensus, while second-quarter EPS guidance of $0.48-$0.49 also exceeds the $0.44 consensus.
• Positive Sentiment: BTIG Research raised its price target from $47 to $62 and upgraded the stock to “buy,” adding to the bullish analyst reaction following the earnings release. BTIG price-target increase
• Neutral Sentiment: Fiscal 2027 revenue guidance of approximately $2.3 billion is broadly in line with Wall Street expectations, limiting the upside from the otherwise strong EPS outlook.
• Negative Sentiment: Second-quarter revenue guidance of $565 million-$570 million is slightly below the $570.1 million consensus, and reports indicated that Dynatrace modestly lowered its full-year revenue outlook. Dynatrace earnings and guidance report

Institutional Trading of Dynatrace

A number of hedge funds and other institutional investors have recently bought and sold shares of DT. Cim LLC raised its holdings in shares of Dynatrace by 1.0% in the third quarter. Cim LLC now owns 22,184 shares of the company’s stock valued at $1,075,000 after purchasing an additional 228 shares during the last quarter. Orion Porfolio Solutions LLC grew its position in Dynatrace by 1.4% in the 3rd quarter. Orion Porfolio Solutions LLC now owns 16,983 shares of the company’s stock worth $823,000 after purchasing an additional 231 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its position in Dynatrace by 21.3% in 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. Principal Securities Inc. increased its stake in Dynatrace by 1.3% in the 4th quarter. Principal Securities Inc. now owns 24,879 shares of the company’s stock valued at $1,078,000 after buying an additional 316 shares during the last quarter. Finally, Jones Financial Companies Lllp increased its stake in 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 last quarter. 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.