Dynatrace (NYSE:DT) Updates Q1 2027 Earnings Guidance

Dynatrace (NYSE:DT) issued an update on its first quarter 2027 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 0.440-0.450 for the period, compared to the consensus earnings per share estimate of 0.410. The company issued revenue guidance of $547.0 million-$551.0 million, compared to the consensus revenue estimate of $547.9 million. Dynatrace also updated its FY 2027 guidance to 1.930-1.950 EPS.

Dynatrace Trading Down 11.4%

NYSE:DT opened at $34.73 on Thursday. The stock has a market capitalization of $10.36 billion, a PE ratio of 56.93, a price-to-earnings-growth ratio of 2.39 and a beta of 0.70. The firm’s 50 day moving average is $37.10 and its 200 day moving average is $40.49. Dynatrace has a 12 month low of $31.64 and a 12 month high of $57.55.

Dynatrace (NYSE:DT) last posted its quarterly earnings results on Wednesday, May 13th. The company reported $0.41 EPS for the quarter, topping analysts’ consensus estimates of $0.39 by $0.02. The company had revenue of $531.72 million for the quarter, compared to analysts’ expectations of $521.01 million. Dynatrace had a net margin of 9.55% and a return on equity of 9.75%. Dynatrace’s revenue was up 19.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.33 EPS. Dynatrace has set its FY 2027 guidance at 1.930-1.950 EPS and its Q1 2027 guidance at 0.440-0.450 EPS. Research analysts predict that Dynatrace will post 0.88 earnings per share for the current year.

Dynatrace declared that its board has authorized a share repurchase plan on Monday, February 9th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the company to purchase up to 9.8% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s management believes its shares are undervalued.

Wall Street Analysts Forecast Growth

DT has been the subject of a number of recent research reports. Morgan Stanley reduced their price objective on shares of Dynatrace from $57.00 to $43.00 and set an “equal weight” rating for the company in a research note on Tuesday, February 10th. Raymond James Financial reiterated a “market perform” rating on shares of Dynatrace in a research note on Monday, February 9th. Royal Bank Of Canada reiterated an “outperform” rating on shares of Dynatrace in a research note on Monday, February 9th. Stifel Nicolaus set a $51.00 price objective on shares of Dynatrace in a research note on Monday, February 9th. Finally, UBS Group set a $64.00 price objective on shares of Dynatrace in a research note on Thursday, March 12th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $50.88.

Insider Activity at Dynatrace

In other news, EVP Stephen A. Mcmahon purchased 3,000 shares of Dynatrace stock in a transaction dated 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 transaction, 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 purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.57% of the stock is owned by company insiders.

Dynatrace News Roundup

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 Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Northwestern Mutual Wealth Management Co. grew its position in shares of Dynatrace by 21.3% during 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 in the last quarter. Quarry LP grew its position in shares of Dynatrace by 251.1% during the 4th quarter. Quarry LP now owns 2,219 shares of the company’s stock valued at $96,000 after purchasing an additional 1,587 shares in the last quarter. Jones Financial Companies Lllp grew its position in shares of Dynatrace by 19.2% during the 1st quarter. Jones Financial Companies Lllp now owns 2,161 shares of the company’s stock valued at $102,000 after purchasing an additional 348 shares in the last quarter. UMB Bank n.a. grew its position in Dynatrace by 12.7% in the fourth quarter. UMB Bank n.a. now owns 3,190 shares of the company’s stock worth $138,000 after acquiring an additional 360 shares in the last quarter. Finally, Arax Advisory Partners grew its position in Dynatrace by 306.6% in the fourth quarter. Arax Advisory Partners now owns 3,253 shares of the company’s stock worth $141,000 after acquiring an additional 2,453 shares in the last quarter. 94.28% of the stock is currently owned by hedge funds and other 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.