Dynatrace (NYSE:DT) Shares Gap Up After Strong Earnings

Dynatrace, Inc. (NYSE:DT) shares gapped up prior to trading on Monday following a better than expected earnings announcement. The stock had previously closed at $33.71, but opened at $38.29. Dynatrace shares last traded at $35.4890, with a volume of 3,237,449 shares changing hands.

The company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.03. Dynatrace had a net margin of 27.33% and a return on equity of 9.24%. The company had revenue of $515.47 million for the quarter, compared to analysts’ expectations of $506.31 million. During the same quarter in the previous year, the business posted $0.37 earnings per share. Dynatrace’s quarterly revenue was up 18.2% on a year-over-year basis. Dynatrace has set its FY 2026 guidance at 1.670-1.690 EPS and its Q4 2026 guidance at 0.380-0.390 EPS.

Key Stories Impacting Dynatrace

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Raised Q4 guidance — Dynatrace gave Q4 FY2026 EPS guidance of $0.380–$0.390 versus the consensus ~$0.300 and revenue guidance of $518M–$523M versus ~ $514M, signaling stronger near-term profitability and topline momentum. View Press Release
• Positive Sentiment: Upside to FY2026 outlook — management set FY2026 EPS at $1.670–$1.690 versus consensus ~$1.340, while FY revenue guidance was roughly in line at ~$2.0B. The raised earnings outlook reduces near‑term execution uncertainty. View Press Release
• Positive Sentiment: Q3 results beat — reported EPS $0.44 vs. consensus $0.41 and revenue $515.47M vs. ~$506M; management said results exceeded the high end of guidance and highlighted double‑digit net new ARR growth for three consecutive quarters, underscoring customer adoption of its AI‑powered observability platform. Dynatrace Reports Third Quarter Fiscal Year 2026 Financial Results
• Neutral Sentiment: Technical/valuation context — DT is trading below its 50‑day ($41.95) and 200‑day ($46.31) moving averages and sits between its 12‑month low ($32.83) and high ($63.00). Market cap ~ $10.2B and PE ~20.2; investors may watch whether guidance-driven momentum can push the stock back above these moving averages.
• Neutral Sentiment: Pre-earnings coverage — several preview and earnings‑summary pieces circulated around the report (MSN, Zacks, local outlets), which helped amplify attention but added little new information beyond the official release. Dynatrace (DT) Tops Q3 Earnings and Revenue Estimates

Analyst Upgrades and Downgrades

Several brokerages have issued reports on DT. Truist Financial decreased their price objective on shares of Dynatrace from $60.00 to $55.00 and set a “buy” rating for the company in a research note on Wednesday, November 19th. Jefferies Financial Group reduced their price target on Dynatrace from $65.00 to $55.00 and set a “buy” rating on the stock in a report on Monday, January 5th. Rosenblatt Securities dropped their price objective on Dynatrace from $67.00 to $60.00 and set a “buy” rating for the company in a report on Friday, January 30th. Scotiabank reduced their target price on Dynatrace from $67.00 to $60.00 and set an “outperform” rating on the stock in a research note on Thursday, November 6th. Finally, Royal Bank Of Canada decreased their target price on Dynatrace from $64.00 to $56.00 and set an “outperform” rating for the company in a research report on Monday, January 5th. Eighteen analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $58.32.

Insiders Place Their Bets

In other news, CAO Daniel S. Yates sold 2,000 shares of Dynatrace stock in a transaction on Monday, November 17th. The shares were sold at an average price of $46.69, for a total transaction of $93,380.00. Following the completion of the sale, the chief accounting officer directly owned 23,380 shares in the company, valued at approximately $1,091,612.20. The trade was a 7.88% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Rick M. Mcconnell sold 30,000 shares of the firm’s stock in a transaction on Tuesday, November 11th. The stock was sold at an average price of $46.61, for a total transaction of $1,398,300.00. Following the transaction, the chief executive officer directly owned 108,125 shares of the company’s stock, valued at approximately $5,039,706.25. This trade represents a 21.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 39,843 shares of company stock valued at $1,846,424. Insiders own 0.57% of the company’s stock.

Institutional Investors Weigh In On Dynatrace

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DT. BNP Paribas increased its position in shares of Dynatrace by 0.6% during the second quarter. BNP Paribas now owns 36,563 shares of the company’s stock valued at $2,019,000 after acquiring an additional 218 shares during the last quarter. Cim LLC raised its position in 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 period. Orion Porfolio Solutions LLC lifted its stake in Dynatrace by 1.4% during the third 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. GAMMA Investing LLC boosted its position in shares of Dynatrace by 7.7% during the fourth quarter. GAMMA Investing LLC now owns 3,460 shares of the company’s stock worth $150,000 after buying an additional 246 shares during the period. Finally, Assetmark Inc. grew its stake in shares of Dynatrace by 0.7% in the fourth quarter. Assetmark Inc. now owns 36,629 shares of the company’s stock valued at $1,588,000 after buying an additional 248 shares in the last quarter. Institutional investors and hedge funds own 94.28% of the company’s stock.

Dynatrace Trading Up 4.5%

The company has a fifty day moving average of $41.95 and a 200-day moving average of $46.31. The stock has a market cap of $10.62 billion, a PE ratio of 21.20, a P/E/G ratio of 2.66 and a beta of 0.84.

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.