Dynatrace, Inc. (DT) AI Stock Analysis
DT AI stock analysis summary
AI ResearchDynatrace, Inc. provides a software intelligence platform designed for dynamic multi-cloud observability and automation. Over the trailing twelve months, the company generated $2.10B in revenue with an operating margin of 12.9%. It maintains a solid financial foundation, holding $949.6M in net cash as of June 30, 2026.
- Market cap
- $17.66B
- Revenue (TTM)
- $2.10B
- P/E
- 122.2x fwd 29.6x
- 1Y return
- 29.0% S&P 500 16.8%
- Avg. target
- $62.53 2.3% vs last close
Bull case
- Annual revenue expanded from $929.4M in FY2022 to $2.02B in FY2026, reflecting a 5-year revenue CAGR of 23.5%.
- Cash generation remains strong, with free cash flow reaching $527.2M in FY2026 alongside a high gross margin of 81.6%.
- The balance sheet provides substantial liquidity, holding $949.6M in net cash with a conservative debt-to-equity ratio of 0.06 as of June 30, 2026.
Bear case
- Valuation multiples trade at a substantial premium to peers, with a trailing P/E of 122.2x versus the US-listed Technology peer median of 28.1x.
- Quarterly earnings declined 24.9% year-over-year in the latest quarter ended June 30, 2026.
- Long-term shareholder returns have lagged the broader market, evidenced by a 5-year return of -18.9% compared to 83.0% for the S&P 500.
What Dynatrace does
Dynatrace, Inc. provides a software intelligence platform built for dynamic multi-cloud environments. Its core platform delivers capabilities including application and microservices monitoring, runtime application security, infrastructure monitoring, digital experience monitoring, business analytics, and cloud automation. These tools allow enterprises to modernize and automate IT operations, streamline software deployment, and enhance digital user experiences. The company also offers implementation, consulting, and training services. Dynatrace sells its products globally through a direct sales force and partner networks, including resellers, system integrators, and managed service providers, across industries such as banking, insurance, retail, and manufacturing.
Growth and profitability
Dynatrace grew revenue from $929.4M in FY2022 to $1.16B in FY2023, $1.43B in FY2024, $1.70B in FY2025, and $2.02B in FY2026, achieving a 5-year revenue CAGR of 23.5% from FY2021 to FY2026. Operating margin expanded to 13.1% in FY2026, supported by an 81.6% gross margin. Annual net income was $162.7M in FY2026, compared to $483.7M in FY2025 and $154.6M in FY2024. For the latest quarter ended June 30, 2026, revenue increased 16.2% year-over-year, while quarterly earnings declined 24.9% year-over-year. TTM revenue reached $2.10B with a profit margin of 7.2%.
Balance sheet and cash flow
As of June 30, 2026, Dynatrace held $1.11B in cash and short-term investments alongside $159.3M in total debt, resulting in net cash of $949.6M. Shareholders' equity totaled $2.45B, with a debt-to-equity ratio of 0.06 and a current ratio of 1.21. During FY2026, the business produced $559.4M in operating cash flow and $527.2M in free cash flow. It allocated $32.2M toward capital expenditures and used $478.7M for share buybacks.
Valuation and performance
Dynatrace trades at a trailing P/E of 122.2x and a forward P/E of 29.6x, compared to the median of its US-listed Technology peers at 28.1x and 18.8x, respectively. Its enterprise value to EBITDA multiple stands at 53.5x against the peer median of 16.6x, and its price-to-sales ratio is 8.5x compared to the peer median of 2.8x. Over the past year, DT shares increased 29.0%, outperforming the S&P 500 return of 16.8%. Over a 5-year period, the stock fell 18.9%, trailing the S&P 500 gain of 83.0%.
What analysts expect
Wall Street analysts hold 21 Strong Buy, 7 Buy, 8 Hold, and 1 Sell ratings on Dynatrace. The mean price target is $62.53, which is 2.3% above the October 16, 2026 close of $61.11. For the fiscal year ending March 31, 2027, consensus estimates forecast EPS of $1.91 on revenue of $2.34B. Dynatrace has beaten EPS estimates in each of the past 4 quarters, and its next earnings report is scheduled for November 4, 2026.
Key risks and what to watch
- Net income dropped from $483.7M in FY2025 to $162.7M in FY2026, indicating potential volatility in annual profitability.
- A premium price-to-sales ratio of 8.5x creates downside exposure if revenue growth drops below the recent 16.2% quarterly pace.
- Short interest represents 5.7% of the float, reflecting an ongoing degree of bearish market positioning.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this DT AI stock analysis
This page is an AI-written research summary of Dynatrace, Inc. (DT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: DT income statement, DT balance sheet, DT key metrics, DT analyst forecast, DT chart. See the DT stock overview for the latest quote and news.
DT AI stock analysis FAQ
Does Dynatrace pay a dividend?
Dynatrace does not pay a dividend. The company directs its capital toward operational growth and share buybacks, repurchasing $478.7M of its common stock in FY2026.
What are analysts forecasting for Dynatrace's upcoming fiscal years?
For the fiscal year ending March 31, 2027, consensus estimates project revenue of $2.34B and EPS of $1.91. For the following fiscal year, analysts forecast revenue of $2.73B and EPS of $2.26, representing 18.7% EPS growth.
How strong is Dynatrace's financial condition?
As of June 30, 2026, Dynatrace held $1.11B in cash and short-term investments against $159.3M in debt, resulting in $949.6M in net cash. Its current ratio was 1.21 and its debt-to-equity ratio stood at 0.06.
When does Dynatrace report its next quarterly earnings?
Dynatrace is scheduled to report its next quarterly earnings on November 4, 2026. The company has exceeded EPS expectations in each of the trailing 4 quarters.