Dynatrace (NYSE:DT) Issues Earnings Results

Dynatrace (NYSE:DT) issued its quarterly earnings results on Monday. The company reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.41 by $0.03, FiscalAI reports. The firm had revenue of $515.47 million during the quarter, compared to analyst estimates of $506.31 million. Dynatrace had a return on equity of 9.24% and a net margin of 27.33%.The company’s revenue was up 18.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.37 earnings per share. Dynatrace updated its FY 2026 guidance to 1.670-1.690 EPS and its Q4 2026 guidance to 0.380-0.390 EPS.

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

• Dynatrace beat Q3 guidance across every metric, reported ARR of $1.97B (16% growth), raised full-year ARR guidance ~125 bps toward a path to $2B ARR, and the board authorized a new $1B share repurchase program.
• The company unveiled Dynatrace Intelligence—an agentic operations system built on Grail (its lakehouse) and Smartscape—positioning AI-driven, usage-based monetization through increased platform usage and agentic execution.
• Commercial momentum remains strong with three consecutive quarters of double-digit net new ARR, record new-logo ARR (164 new logos, >$160K average ARR per new logo) and average ARR per customer approaching $500K, driven in part by multiple seven-figure deals and large migrations.
• Consumption growth (>20% YoY) is outpacing ARR growth (16%), and management signaled that conversion of DPS/consumption into durable ARR and broader enterprise adoption of agentic AI will take time, making future ARR acceleration contingent on renewals and usage‑to‑contract conversions.

Dynatrace Stock Performance

NYSE DT opened at $36.22 on Tuesday. Dynatrace has a fifty-two week low of $32.83 and a fifty-two week high of $63.00. The stock has a market cap of $10.92 billion, a P/E ratio of 21.69, a price-to-earnings-growth ratio of 2.66 and a beta of 0.84. The stock has a 50 day simple moving average of $41.78 and a two-hundred day simple moving average of $46.18.

Insiders Place Their Bets

In related news, EVP Dan Zugelder sold 7,505 shares of Dynatrace stock in a transaction on Wednesday, December 10th. The shares were sold at an average price of $45.27, for a total value of $339,751.35. Following the sale, the executive vice president owned 8,925 shares in the company, valued at $404,034.75. The trade was a 45.68% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO Daniel S. Yates sold 2,000 shares of the company’s stock in a transaction on Monday, November 17th. The stock was sold at an average price of $46.69, for a total transaction of $93,380.00. Following the completion of the transaction, the chief accounting officer owned 23,380 shares of the company’s stock, valued at $1,091,612.20. This trade represents a 7.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 9,843 shares of company stock valued at $448,124 in the last ninety days. 0.57% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Dynatrace by 21.3% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,548 shares of the company’s stock valued at $85,000 after purchasing an additional 272 shares during the period. Jones Financial Companies Lllp raised its holdings in Dynatrace by 19.2% in the first quarter. Jones Financial Companies Lllp now owns 2,161 shares of the company’s stock worth $102,000 after purchasing an additional 348 shares in the last quarter. Voleon Capital Management LP bought a new position in Dynatrace in the third quarter worth $221,000. Coldstream Capital Management Inc. lifted its position in Dynatrace by 10.5% during the third quarter. Coldstream Capital Management Inc. now owns 4,604 shares of the company’s stock valued at $223,000 after buying an additional 437 shares during the period. Finally, Connecticut Wealth Management LLC bought a new stake in shares of Dynatrace during the 2nd quarter valued at $226,000. Institutional investors own 94.28% of the company’s stock.

Key Stories Impacting Dynatrace

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Q3 results beat estimates — Revenue $515.5M (vs. $506.3M est.) and EPS $0.44 (vs. $0.41 est.); management highlighted continued double‑digit net new ARR growth. Dynatrace Reports Third Quarter Fiscal Year 2026 Financial Results
• Positive Sentiment: Company raised outlook — updated Q4 and FY‑2026 EPS and revenue guidance materially above prior consensus, signaling stronger profitability and topline momentum. Dynatrace Stock Pops on Lifted Outlook, Strong Q3 Results
• Positive Sentiment: Board authorized a $1.0 billion share buyback (≈9.8% of shares outstanding), a sign management believes shares are undervalued and will return cash to shareholders. RTT News — Stock Buybacks
• Positive Sentiment: Growth drivers: analysts and press point to expanding cloud partnerships and rising free cash flow as underpinning sustainable revenue/ARR growth. Why Dynatrace Stock Climbed Today
• Neutral Sentiment: Market reaction and context — multiple outlets reported the beat and buyback and the stock has moved up on the news; note DT still trades below its 50‑ and 200‑day averages and well under its 52‑week high, leaving room for re-rating or further volatility. DT Stock Page — MarketBeat
• Neutral Sentiment: Commentary: company downplayed near‑term AI threats while flagging upside — generally reassuring but not new guidance; useful color for longer‑term thesis. Dynatrace earnings beat — MSN

Dynatrace announced that its board has authorized a stock repurchase program on Monday, February 9th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the company to reacquire up to 9.8% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board believes its stock is undervalued.

Wall Street Analyst Weigh In

DT has been the subject of several research reports. Scotiabank cut their target price on Dynatrace from $67.00 to $60.00 and set an “outperform” rating for the company in a research note on Thursday, November 6th. Weiss Ratings restated a “hold (c)” rating on shares of Dynatrace in a report on Monday, December 29th. Keefe, Bruyette & Woods raised shares of Dynatrace to a “buy” rating in a research note on Monday. Rosenblatt Securities reduced their price objective on Dynatrace from $67.00 to $60.00 and set a “buy” rating on the stock in a research note on Friday, January 30th. Finally, BMO Capital Markets reissued an “outperform” rating and issued a $45.00 target price on shares of Dynatrace in a research note on Monday. Twenty equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $55.88.

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.