Upside case
Bull case
$89+114.3%
DT would need investors to value it at roughly 46x earnings — about 24x more generous than today's 21x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated Jun 18, 2026
Dynatrace, Inc. (DT) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
34
analysts
27 bullish · 0 bearish · 34 covering DT
Strong Buy
0
Buy
27
Hold
7
Sell
0
Strong Sell
0
Consensus Target
$46
+12.0% vs today
Scenario Range
$42 – $89
Model bear to bull value window
Coverage
34
Published analyst ratings
Valuation Context
21.3x
Forward P/E · Market cap $12.1B
DT price targets
Three scenarios for where DT stock could go
Current
~$41
Confidence
64 / 100
Updated
Jun 18, 2026
Where we are now
Current · $41
Bear
$42
Base
$67
Bull
$89
Market caseClosest to today
Base case
$67+62.7%
At 35x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$42+2.5%
The bear case assumes sentiment or fundamentals disappoint enough to push DT down roughly 2% from the current price.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Dynatrace, Inc.
DT · NYSETechnologySoftware - ApplicationMarch year-end
Dynatrace provides a software intelligence platform that monitors and optimizes complex multi-cloud environments for enterprise customers. It generates revenue primarily through subscription-based software licenses — with its platform segment accounting for over 95% of total revenue — supplemented by professional services. The company's key advantage is its proprietary AI-powered observability technology that automatically detects and diagnoses performance issues across modern cloud-native architectures.
Market Cap
$12.1B
Revenue TTM
$2.0B
Net Income TTM
$163M
Net Margin
8.1%
DT Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
100%Exceptional
12 quarters tracked
Revenue Beat Rate
92%Exceptional
vs consensus estimates
Avg EPS Surprise
+12.0%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$0.42/$0.38
Revenue
$477M/$468M
Q4 2025
EPS
$0.44/$0.41
Revenue
$494M/$487M
Q1 2026
EPS
$0.44/$0.41
Revenue
$515M/$506M
Q2 2026
EPS
$0.41/$0.39
Revenue
$532M/$521M
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $0.42/$0.38 | +11.8% | $477M/$468M | +2.1% |
| Q4 2025 | $0.44/$0.41 | +7.5% | $494M/$487M | +1.3% |
| Q1 2026 | $0.44/$0.41 | +7.3% | $515M/$506M | +1.9% |
| Q2 2026 | $0.41/$0.39 | +5.4% | $532M/$521M | +2.1% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$2.4B
+16.5% YoY
FY2
$2.7B
+14.1% YoY
EPS Outlook
FY1
$1.42
+160.6% YoY
FY2
$1.50
+5.6% YoY
Trailing FCF (TTM)$527M
FCF Margin: 26.1%
Next Earnings
August 5, 2026
Expected EPS
$0.45
Expected Revenue
$549M
DT beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
DT Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2026
Total disclosed revenue $2.0B
Product Mix
Latest annual revenue by segment or product family
Subscription and Circulation
95.6%
+19.0% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
North America
50.4%
-1.9% YoY
Tap, hover, or focus a slice to inspect segment detail.
Subscription and Circulation is the largest disclosed segment at 95.6% of FY 2026 revenue, up 19.0% YoY.
North America is the largest reported region at 50.4%, down 1.9% YoY.
DT Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Expensive versus peers
Fair value est. $33 — implies -20.5% from today's price.
Premium to Fair Value
20.5%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
DT
76.7x
vs
S&P 500
24.4x
+214% premium
vs Technology Trailing P/E
DT
76.7x
vs
Technology
29.0x
+164% premium
vs DT 5Y Avg P/E
Today
76.7x
vs
5Y Average
75.4x
In line with benchmark
Forward PE
21.3x
S&P 500
18.8x
+13%
Technology
22.3x
-4%
5Y Avg
—
—
Trailing PE
76.7x
S&P 500
24.4x
+214%
Technology
29.0x
+164%
5Y Avg
75.4x
+2%
PEG Ratio
4.87x
S&P 500
1.66x
+194%
Technology
1.51x
+223%
5Y Avg
—
—
EV/EBITDA
38.7x
S&P 500
15.2x
+154%
Technology
16.6x
+133%
5Y Avg
68.9x
-44%
Price/FCF
22.9x
S&P 500
20.7x
+11%
Technology
19.2x
+19%
5Y Avg
37.9x
-40%
Price/Sales
6.0x
S&P 500
3.1x
+93%
Technology
2.4x
+145%
5Y Avg
9.8x
-39%
Dividend Yield
—
S&P 500
1.91%
—
Technology
1.11%
—
5Y Avg
—
—
| Metric | DT | S&P 500 | Technology | 5Y Avg DT |
|---|---|---|---|---|
| Forward PE | 21.3x | 18.8x+13% | 22.3x | — |
| Trailing PE | 76.7x | 24.4x+214% | 29.0x+164% | 75.4x |
| PEG Ratio | 4.87x | 1.66x+194% | 1.51x+223% | — |
| EV/EBITDA | 38.7x | 15.2x+154% | 16.6x+133% | 68.9x-44% |
| Price/FCF | 22.9x | 20.7x+11% | 19.2x+19% | 37.9x-40% |
| Price/Sales | 6.0x | 3.1x+93% | 2.4x+145% | 9.8x-39% |
| Dividend Yield | — | 1.91% | 1.11% | — |
DT trades above S&P 500 benchmarks on 6 of 6 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolDT Financial Health
Verdict
Strong
DT generates $527M in free cash flow at a 26.1% margin — 11.8% ROIC signals a durable competitive advantage · returns 4.0% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$2.0B
Revenue Growth
TTM vs prior year
+18.8%
Gross Margin
Gross profit as a share of revenue
81.6%
Operating Margin
Operating income divided by revenue
13.1%
Net Margin
Net income divided by revenue
8.1%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$0.54
Free Cash Flow (TTM)
Cash generation after capex
$527M
FCF Margin
FCF as share of revenue — the primary cash quality signal
26.1%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
11.8%
ROA
Return on assets, trailing twelve months
3.9%
Cash & Equivalents
Liquid assets on the balance sheet
$1.1B
Net Cash
Cash exceeds total debt — no net leverage
$933M
Debt Serviceability
Net debt as a multiple of annual free cash flow
Net cash ✓
ROE
Return on equity, trailing twelve months
6.0%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
4.0%
Dividend
—
Buyback
4.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$479M
Dividend / Share
Annualized trailing dividend per share
—
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Declining as buybacks retire shares
291M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageDT Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 18, 2026
Medium
AI reliance risk
Dynatrace's heavy reliance on proprietary AI (Dynatrace Intelligence) for core functionalities could pose risks if AI performance falters or competitors develop superior alternatives.
High Risk
Competitive pressures
Operating in the crowded Software - Application sector, Dynatrace faces intense competition which could erode market share and pricing power.
Medium
Execution challenges
The company's ambitious vision of flawless global software performance requires flawless execution across observability, security, and automation - any missteps could impact growth.
Lower
Valuation concerns
With only +6.8% implied upside to consensus targets, current valuation may already reflect near-term growth prospects.
Medium
Technology disruption
Rapid evolution in AI and observability technologies could make Dynatrace's current platform less differentiated over time.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why DT Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 18, 2026
AI-driven observability platform
Dynatrace leverages its proprietary AI engine, Dynatrace Intelligence, for early detection of system issues and unified observability, reducing false alarms and improving efficiency.
Strong market positioning
Dynatrace operates in the Technology sector, specifically Software - Application, with a focus on observability, security, and automation, making it a leader in its niche.
Attractive valuation metrics
As of recent data, Dynatrace's trailing and forward P/E ratios were 24.78 and 22.37 respectively, indicating reasonable valuation for a growth company.
Unified platform offering
Dynatrace provides a comprehensive solution combining observability, application security, and automation, powered by its hypermodal AI, Davis®, enhancing its value proposition.
Bullish analyst sentiment
Multiple bullish theses highlight Dynatrace's potential, with analysts emphasizing its AI capabilities and market leadership as key growth drivers.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
DT Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$41.42
52W Range Position
38%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$31.64
+30.9% from the low
52-Week High
$57.55
-28.0% from the high
1 Month
+3.94%
3 Month
+2.93%
YTD
-2.2%
1 Year
-25.6%
3Y CAGR
-6.7%
5Y CAGR
-6.2%
10Y CAGR
+5.7%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
DT vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
21.3x
vs 25.6x median
-17% below peer median
Revenue Growth
+16.5%
vs +11.4% median
+45% above peer median
Net Margin
8.1%
vs 12.2% median
-34% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
DT DT Dynatrace, Inc. | $12.1B | 21.3x | +16.5% | 8.1% | Buy | +12.0% |
DDO DDOG Datadog, Inc. | $79.4B | 91.9x | +18.2% | 3.7% | Buy | +3.7% |
APM APM Aptorum Group Limited | $5M | — | -84.8% | -1644.3% | — | — |
EST ESTC Elastic N.V. | $6.1B | 23.3x | +9.2% | 21.1% | Buy | +6.6% |
PD PD PagerDuty, Inc. | $773M | 7.5x | +13.3% | 38.0% | Hold | +33.6% |
AMZ AMZN Amazon.com, Inc. | $2.63T | 27.8x | +11.4% | 12.2% | Buy | +25.9% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
DT Dividend and Capital Return
DT returns 4.0% annually — null% through dividends and 4.0% through buybacks.
Dividend UnknownFCF Unknown
Total Shareholder Yield
4.0%
Dividend + buyback return per year
Buyback Yield
4.0%
Dividend Yield
—
Payout Ratio
—
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.00
Growth Streak
Consecutive years of dividend increases
0Y
3Y Div CAGR
—
5Y Div CAGR
—
Ex-Dividend Date
—
Payment Cadence
Annual
0 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$479M
Estimated Shares Retired
12M
Approx. Share Reduction
4.0%
Shares Outstanding
Current diluted share count from the screening snapshot
291M
At 4.0%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw |
|---|---|---|
| 2010 | $1.03 | -1.0% |
| 2009 | $1.04 | — |
FAQ
7 questionsDT Investor Questions
Common questions answered from live analyst data and company financials.
01Is Dynatrace, Inc. (DT) stock a buy or sell in 2026?
Dynatrace, Inc. (DT) is rated Buy by Wall Street analysts as of 2026. Of 34 analysts covering the stock, 27 rate it Buy or Strong Buy, 7 rate it Hold, and 0 rate it Sell or Strong Sell. The consensus 12-month price target is $46, implying +12.0% from the current price of $41. The bear case scenario is $42 and the bull case is $89.
02What is the DT stock price target for 2026?
The Wall Street consensus price target for DT is $46 based on 34 analyst estimates. The high-end target is $60 (+44.9% from today), and the low-end target is $37 (-10.7%). The base case model target is $67.
03Is Dynatrace, Inc. (DT) stock overvalued in 2026?
DT trades at 21.3x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals expensive versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Dynatrace, Inc. (DT) stock in 2026?
The primary risks for DT in 2026 are: (1) Competitive pressures — Operating in the crowded Software - Application sector, Dynatrace faces intense competition which could erode market share and pricing power. (2) AI reliance risk — Dynatrace's heavy reliance on proprietary AI (Dynatrace Intelligence) for core functionalities could pose risks if AI performance falters or competitors develop superior alternatives. (3) Execution challenges — The company's ambitious vision of flawless global software performance requires flawless execution across observability, security, and automation - any missteps could impact growth. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Dynatrace, Inc.'s revenue and earnings forecast?
Analyst consensus estimates DT will report consensus revenue of $2.4B (+16.5% year-over-year) and EPS of $1.42 (+160.6% year-over-year) for the upcoming fiscal year. The following year, analysts project $2.7B in revenue.
06When does Dynatrace, Inc. (DT) report its next earnings?
Dynatrace, Inc. is expected to report its next earnings on approximately 2026-08-05. Consensus expects EPS of $0.45 and revenue of $549M. Over recent quarters, DT has beaten EPS estimates 100% of the time.
07How much free cash flow does Dynatrace, Inc. generate?
Dynatrace, Inc. (DT) generated $527M in free cash flow over the trailing twelve months — a free cash flow margin of 26.1%. DT returns capital to shareholders through and share repurchases ($479M TTM).