Dynatrace (NYSE:DT) Issues Q2 2027 Earnings Guidance

Dynatrace (NYSE:DT) updated its second quarter 2027 earnings guidance on Wednesday. The company provided EPS guidance of 0.480-0.490 for the period, compared to the consensus EPS estimate of 0.440. The company issued revenue guidance of $565.0 million-$570.0 million, compared to the consensus revenue estimate of $570.1 million. Dynatrace also updated its FY 2027 guidance to 1.970-1.990 EPS.

Dynatrace Trading Down 4.2%

NYSE:DT traded down $2.12 during midday trading on Thursday, reaching $48.74. The company had a trading volume of 3,670,515 shares, compared to its average volume of 6,321,108. The firm has a market capitalization of $14.14 billion, a price-to-earnings ratio of 90.01, a PEG ratio of 2.94 and a beta of 0.72. The stock’s fifty day simple moving average is $43.21 and its 200-day simple moving average is $39.45. Dynatrace has a 12-month low of $31.64 and a 12-month high of $53.28.

Dynatrace (NYSE:DT) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $0.48 earnings per share for the quarter, beating analysts’ consensus estimates of $0.45 by $0.03. Dynatrace had a net margin of 8.06% and a return on equity of 10.37%. The business had revenue of $554.55 million for the quarter, compared to analyst estimates of $550.18 million. During the same period last year, the business earned $0.42 EPS. The company’s revenue was up 16.3% on a year-over-year basis. Dynatrace has set its Q2 2027 guidance at 0.480-0.490 EPS and its FY 2027 guidance at 1.970-1.990 EPS. As a group, sell-side analysts expect that Dynatrace will post 1.11 EPS for the current year.

Wall Street Analysts Forecast Growth

DT has been the subject of several recent analyst reports. Cantor Fitzgerald raised their price objective on shares of Dynatrace from $37.00 to $47.00 and gave the company a “neutral” rating in a research note on Monday. Barclays raised their price objective on Dynatrace from $48.00 to $60.00 and gave the stock an “overweight” rating in a report on Thursday. Weiss Ratings upgraded shares of Dynatrace from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Thursday, July 9th. DA Davidson upped their target price on Dynatrace from $45.00 to $60.00 and gave the company a “buy” rating in a research report on Wednesday, July 15th. Finally, Scotiabank reiterated an “outperform” rating and set a $61.00 price objective on shares of Dynatrace in a research note on Thursday. One analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $53.38.

More Dynatrace News

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Dynatrace reported adjusted earnings of $0.48 per share, above the $0.45 consensus estimate, while revenue of $554.55 million exceeded expectations of $550.18 million and increased 16.3% year over year. The company also highlighted 41% organic net new annual recurring revenue growth, supported by demand for cloud-native workloads and artificial-intelligence initiatives. Dynatrace Reports First Quarter Fiscal Year 2027 Financial Results
• Positive Sentiment: Full-year fiscal 2027 adjusted EPS guidance of $1.97-$1.99 is well above the $1.78 analyst consensus, suggesting improving profitability expectations. Second-quarter EPS guidance of $0.48-$0.49 also exceeds the $0.44 consensus. Dynatrace Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: Analyst sentiment strengthened after the report. BTIG Research raised its price target from $47 to $62 and upgraded the stock to “buy,” while Royal Bank of Canada lifted its target from $50 to $59 and assigned an “outperform” rating. Rosenblatt Securities also issued a buy rating. Analyst price-target changes Rosenblatt Securities Buy Rating
• Neutral Sentiment: Management’s second-quarter revenue outlook of $565 million-$570 million is broadly in line with expectations, while full-year revenue guidance remains approximately $2.3 billion. This indicates continued growth but not a major near-term revenue forecast increase.
• Negative Sentiment: The company slightly reduced its fiscal 2027 revenue outlook, and second-quarter revenue guidance is just below the $570.1 million consensus. With Dynatrace trading at roughly 90 times earnings, the stock’s valuation leaves limited room for execution or growth disappointments.

Institutional Investors Weigh In On Dynatrace

Large investors have recently added to or reduced their stakes in the stock. State Street Corp increased its holdings in shares of Dynatrace by 1.0% during the fourth quarter. State Street Corp now owns 10,664,357 shares of the company’s stock worth $462,193,000 after buying an additional 101,994 shares in the last quarter. Wellington Management Group LLP grew its holdings in Dynatrace by 9.0% in the fourth quarter. Wellington Management Group LLP now owns 7,999,919 shares of the company’s stock worth $346,716,000 after purchasing an additional 659,792 shares during the period. Alyeska Investment Group L.P. grew its stake in shares of Dynatrace by 1,201.7% in the 4th quarter. Alyeska Investment Group L.P. now owns 2,888,249 shares of the company’s stock valued at $125,177,000 after buying an additional 2,666,373 shares during the period. Scge Management L.P. acquired a new position in shares of Dynatrace during the second quarter valued at about $155,858,000. Finally, Northern Trust Corp increased its position in shares of Dynatrace by 1.4% during the third quarter. Northern Trust Corp now owns 2,822,509 shares of the company’s stock valued at $136,751,000 after acquiring an additional 38,148 shares during the last quarter. Institutional investors and hedge funds own 94.28% of the company’s stock.

Dynatrace Company Profile

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.