
Dynatrace Inc (DT) Stock Forecast & Price Target
Dynatrace Inc (DT) Analyst Ratings
Bulls say
Dynatrace's financial performance shows strong growth indicators with subscription revenue reaching $458 million, representing a 20% year-over-year increase, and an annual recurring revenue (ARR) of $1,822 million, up 18% year-over-year, both exceeding expectations. The company's revenue outlook for FY26 and FY27 reflects a robust trajectory, with anticipated total revenue growth of 16.7% to $1,983 million for FY26 and further growth to $2,270.9 million in FY27, supported by solid customer traction and improved sales strategies. Additionally, Dynatrace's free cash flow margins of 54.9% significantly surpassed consensus estimates, reinforcing its financial health and operational efficiency.
Bears say
Dynatrace's recent financial performance shows a significant decline in sequential billings, posting $388 million, which represents a 46.0% drop and raises concerns about future revenue growth, particularly as the company anticipates a further reduction in growth and operating margins in FY2027. The firm faces primary risks including potentially slowing annual recurring revenue (ARR) growth as post-COVID sales cycles normalize, challenges in expanding customer adoption of new products, and the underwhelming performance of its core Application Performance Monitoring (APM) market within the broader cloud monitoring sector. Additionally, concerns are further compounded by currency risks, particularly from the euro-denominated expense mix, which could negatively impact margins amid a weakening dollar.
This aggregate rating is based on analysts' research of Dynatrace Inc and is not a guaranteed prediction by Public.com or investment advice.
Dynatrace Inc (DT) Analyst Forecast & Price Prediction
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