Dynatrace (NYSE:DT) Issues FY 2027 Earnings Guidance

Dynatrace (NYSE:DT) issued an update on its FY 2027 earnings guidance on Wednesday morning. The company provided EPS guidance of 1.930-1.950 for the period, compared to the consensus EPS estimate of 1.750. 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 Q1 2027 guidance to 0.440-0.450 EPS.

Dynatrace Stock Down 11.4%

NYSE:DT opened at $34.73 on Thursday. The stock’s 50 day moving average price is $37.10 and its two-hundred day moving average price is $40.49. The firm has a market capitalization of $10.36 billion, a price-to-earnings ratio of 56.93, a P/E/G ratio of 2.39 and a beta of 0.70. Dynatrace has a 12-month low of $31.64 and a 12-month high of $57.55.

Dynatrace (NYSE:DT) last released its quarterly earnings data on Wednesday, May 13th. The company reported $0.41 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.39 by $0.02. The firm had revenue of $531.72 million for the quarter, compared to analyst estimates of $521.01 million. Dynatrace had a return on equity of 9.75% and a net margin of 9.55%.The business’s revenue for the quarter was up 19.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.33 earnings per share. Dynatrace has set its FY 2027 guidance at 1.930-1.950 EPS and its Q1 2027 guidance at 0.440-0.450 EPS. Equities research analysts expect that Dynatrace will post 0.88 EPS for the current year.

Dynatrace declared that its board has approved a stock repurchase plan on Monday, February 9th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the company to buy up to 9.8% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s management believes its shares are undervalued.

Analyst Ratings Changes

Several equities analysts have recently commented on the company. Canaccord Genuity Group set a $50.00 target price on Dynatrace in a research report on Tuesday, February 10th. KeyCorp upped their target price on Dynatrace from $50.00 to $52.00 and gave the company an “overweight” rating in a research report on Tuesday, February 10th. TD Cowen decreased their target price on Dynatrace from $60.00 to $50.00 and set a “buy” rating on the stock in a research report on Wednesday, April 15th. Truist Financial set a $45.00 target price on Dynatrace in a research report on Wednesday, April 15th. Finally, The Goldman Sachs Group assumed coverage on Dynatrace in a research report on Tuesday, April 21st. They issued a “buy” rating and a $45.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $50.88.

Insider Transactions at Dynatrace

In other Dynatrace news, EVP Stephen A. Mcmahon bought 3,000 shares of the business’s stock in a transaction on Tuesday, March 3rd. The stock was purchased at an average cost of $35.75 per share, for a total transaction of $107,250.00. Following the completion of the purchase, the executive vice president directly owned 3,454 shares of the company’s stock, valued at approximately $123,480.50. This trade represents a 660.79% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. 0.57% of the stock is owned by corporate insiders.

Key Dynatrace News

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Dynatrace reported fiscal Q4 results that beat expectations, with EPS of $0.41 to $0.42 versus $0.39 expected and revenue of $531.7 million above estimates of about $521.0 million. The company also said revenue rose 19.4% year over year and ARR topped $2 billion. Dynatrace Reports Fourth Quarter and Full Year Fiscal 2026 Financial Results
• Positive Sentiment: Management issued upbeat FY2027 guidance, calling for EPS of $1.93 to $1.95, well ahead of the consensus estimate, and Q1 FY2027 EPS guidance of $0.44 to $0.45, also above expectations. Dynatrace Reports Fourth Quarter and Full Year Fiscal 2026 Financial Results
• Neutral Sentiment: Several recap and transcript articles on the earnings release are reinforcing the same core story: strong quarter, solid guidance, and a focus on AI-powered observability as a growth driver. Dynatrace (DT) Beats Q4 Earnings and Revenue Estimates
• Neutral Sentiment: BTIG trimmed its price target to $47 from $53 but kept a buy rating, suggesting confidence remains despite a less aggressive valuation view. Benzinga
• Negative Sentiment: Guggenheim downgraded Dynatrace from buy to neutral, which likely added to selling pressure as investors weighed the report against more cautious analyst sentiment. Zacks.com

Institutional Investors Weigh In On Dynatrace

Several institutional investors and hedge funds have recently added to or reduced their stakes in DT. NewEdge Advisors LLC lifted its stake in Dynatrace by 25.3% during the first quarter. NewEdge Advisors LLC now owns 9,135 shares of the company’s stock worth $431,000 after purchasing an additional 1,846 shares during the last quarter. Jones Financial Companies Lllp lifted its stake in Dynatrace by 19.2% during 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 during the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in Dynatrace by 21.3% during the second 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 during the last quarter. Invesco Ltd. lifted its stake in Dynatrace by 38.9% during the second quarter. Invesco Ltd. now owns 793,630 shares of the company’s stock worth $43,816,000 after purchasing an additional 222,395 shares during the last quarter. Finally, Marshall Wace LLP bought a new stake in Dynatrace during the second quarter worth $410,000. 94.28% of the stock is currently owned by institutional investors.

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.