Upside case
Bull case
$46+21.2%
DT would need investors to value it at roughly 28x earnings — about 5x more generous than today's 23x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 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
26 bullish · 0 bearish · 34 covering DT
Strong Buy
0
Buy
26
Hold
8
Sell
0
Strong Sell
0
Consensus Target
$50
+30.4% vs today
Scenario Range
— – $46
Model bear to bull value window
Coverage
34
Published analyst ratings
Valuation Context
22.7x
Forward P/E · Market cap $11.4B
DT price targets
Three scenarios for where DT stock could go
Current
~$38
Confidence
67 / 100
Updated
May 1, 2026
Where we are now
Current · $38
Base
$39
Bull
$46
Market caseClosest to today
Base case
$39+3.3%
This is close to how the market is already pricing DT — at roughly 23x forward earnings. No dramatic re-rating needed, just steady execution on the core business.
Stress case
Bear case
—
The bear case reflects a scenario where earnings shortfalls or multiple compression combine to materially reduce the stock from its current level.
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
$11.4B
Revenue TTM
$1.9B
Net Income TTM
$185M
Net Margin
9.6%
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
+15.0%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 4 of 4Q2 2025
EPS
$0.33/$0.30
Revenue
$445M/$435M
Q3 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
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $0.33/$0.30 | +9.0% | $445M/$435M | +2.4% |
| 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% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$2.1B
+9.9% YoY
FY2
$2.6B
+21.0% YoY
EPS Outlook
FY1
$1.45
+137.8% YoY
FY2
$1.64
+13.5% YoY
Trailing FCF (TTM)$466M
FCF Margin: 24.1%
Next Earnings
May 13, 2026
Expected EPS
$0.39
Expected Revenue
$521M
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 2025
Total disclosed revenue $1.7B
Product Mix
Latest annual revenue by segment or product family
Subscription and Circulation
95.5%
+19.3% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
North America
61.0%
+21.6% YoY
Tap, hover, or focus a slice to inspect segment detail.
Subscription and Circulation is the largest disclosed segment at 95.5% of FY 2025 revenue, up 19.3% YoY.
North America is the largest reported region at 61.0%, up 21.6% 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
Significantly Undervalued
Fair value est. $93 — implies +147.4% from today's price.
Upside to Fair Value
147.4%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
DT
24.0x
vs
S&P 500
25.2x
In line with benchmark
vs Technology Trailing P/E
DT
24.0x
vs
Technology
27.5x
13% discount
vs DT 5Y Avg P/E
Today
24.0x
vs
5Y Average
104.7x
77% discount
Forward PE
22.7x
S&P 500
19.1x
+19%
Technology
21.7x
+5%
5Y Avg
—
—
Trailing PE
24.0x
S&P 500
25.2x
-5%
Technology
27.5x
-13%
5Y Avg
104.7x
-77%
PEG Ratio
—
S&P 500
1.75x
—
Technology
1.47x
—
5Y Avg
—
—
EV/EBITDA
46.2x
S&P 500
15.3x
+203%
Technology
17.4x
+166%
5Y Avg
80.1x
-42%
Price/FCF
26.4x
S&P 500
21.3x
+24%
Technology
19.8x
+33%
5Y Avg
47.1x
-44%
Price/Sales
6.7x
S&P 500
3.1x
+115%
Technology
2.4x
+179%
5Y Avg
12.6x
-47%
Dividend Yield
—
S&P 500
1.88%
—
Technology
1.18%
—
5Y Avg
—
—
| Metric | DT | S&P 500 | Technology | 5Y Avg DT |
|---|---|---|---|---|
| Forward PE | 22.7x | 19.1x+19% | 21.7x | — |
| Trailing PE | 24.0x | 25.2x | 27.5x-13% | 104.7x-77% |
| PEG Ratio | — | 1.75x | 1.47x | — |
| EV/EBITDA | 46.2x | 15.3x+203% | 17.4x+166% | 80.1x-42% |
| Price/FCF | 26.4x | 21.3x+24% | 19.8x+33% | 47.1x-44% |
| Price/Sales | 6.7x | 3.1x+115% | 2.4x+179% | 12.6x-47% |
| Dividend Yield | — | 1.88% | 1.18% | — |
DT trades above S&P 500 benchmarks on 4 of 5 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 $466M in free cash flow at a 24.1% margin — returns 1.5% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$1.9B
Revenue Growth
TTM vs prior year
+18.2%
Gross Margin
Gross profit as a share of revenue
81.6%
Operating Margin
Operating income divided by revenue
13.0%
Net Margin
Net income divided by revenue
9.6%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$0.61
Free Cash Flow (TTM)
Cash generation after capex
$466M
FCF Margin
FCF as share of revenue — the primary cash quality signal
24.1%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
9.0%
ROA
Return on assets, trailing twelve months
4.5%
Cash & Equivalents
Liquid assets on the balance sheet
$1.0B
Net Cash
Cash exceeds total debt — no net leverage
$942M
Debt Serviceability
Net debt as a multiple of annual free cash flow
Net cash ✓
ROE
Return on equity, trailing twelve months
6.7%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
1.5%
Dividend
—
Buyback
1.5%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$173M
Dividend / Share
Annualized trailing dividend per share
—
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Declining as buybacks retire shares
304M
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 April 29, 2026
High Risk
Market and Sector Volatility
Dynatrace operates in the technology and software sectors, which are prone to significant price and volume fluctuations. Broader market downturns or a loss of investor confidence in technology stocks can negatively impact DT's stock price, particularly during the ongoing 'SaaSpocalypse' affecting enterprise software.
High Risk
Growth Sustainability and Execution
Concerns regarding the sustainability of Dynatrace's growth are heightened by potential challenges in enterprise software demand and shifting AI-related spending priorities. Questions about execution challenges and the transition to new business models further complicate the outlook.
High Risk
AI-Related Risks
Investors are increasingly concerned about structural risks to SaaS business models posed by AI agents. Additionally, uncertainties surrounding AI-related spending priorities could adversely affect investor sentiment towards Dynatrace.
Medium
Competition
The observability and AIOps markets are highly competitive, with numerous competing open-source solutions. This intense competition could pressure Dynatrace's market share and pricing power.
Medium
Valuation Concerns
While some analysts see significant upside potential for Dynatrace, others express concerns regarding its valuation. The stock may be trading at a relatively high valuation compared to its peers, which could deter potential investors.
Medium
On-Demand Consumption and Deal Timing
Lower-than-expected revenue from on-demand consumption (ODC) and variability in the timing of closing large, strategic deals can impact booking predictability and cash flow. This unpredictability remains a concern despite strong headline ARR/revenue growth.
Lower
Sales of Stock
The potential for large block sales of common stock by existing shareholders could lead to downward pressure on the market price of Dynatrace shares.
Lower
Key Personnel Departures
The departure of executive officers, senior management, or other key personnel could negatively impact Dynatrace's operational effectiveness and investor confidence.
Lower
Litigation and Security Incidents
Litigation, data breaches, or security incidents could lead to stock price fluctuations and damage the company's reputation.
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 April 29, 2026
Market Leadership and Network Expansion
Deutsche Telekom maintains a clear market leadership in Germany and has a significant presence in the U.S. through T-Mobile US. The company is heavily investing in fiber-optic network expansion and 5G technology, aiming for high population coverage, which is expected to drive solid revenue growth.
Financial Performance and Outlook
The company has demonstrated strong financial results, with increases in revenue and profitability. For 2026, Deutsche Telekom expects further growth in Group sales, Adjusted EBITDA, and Free Cash Flow.
Shareholder Returns Commitment
Deutsche Telekom is committed to shareholder value through dividends and share buybacks, planning to pay out 40% to 60% of adjusted earnings per share in dividends. A proposed dividend of €1.00 per share for 2025 and a share buyback program of €2 billion for 2026 are also planned.
Digital Transformation Initiatives
The company is undergoing significant digital transformation initiatives, investing in new technologies and services to enhance customer experience and operational efficiency.
AI and Observability Leadership
Dynatrace is well-positioned to capitalize on the growing demand for IT infrastructure monitoring and analysis, especially as organizations increasingly adopt AI and cloud technologies. Its platform is crucial for monitoring, protecting, and optimizing complex systems in real-time.
Strong Financials and Growth
Dynatrace consistently delivers strong revenue growth of around 18-20% year-over-year and high profitability, with operating margins near 30%. The acceleration of Dynatrace Platform Subscription (DPS) adoption is becoming a key growth driver.
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
$38.21
52W Range Position
25%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$31.64
+20.8% from the low
52-Week High
$57.55
-33.6% from the high
1 Month
+1.97%
3 Month
+13.35%
YTD
-9.8%
1 Year
-19.3%
3Y CAGR
-4.6%
5Y CAGR
-3.8%
10Y CAGR
+4.8%
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
22.7x
vs 27.4x median
-17% below peer median
Revenue Growth
+9.9%
vs +10.0% median
-1% below peer median
Net Margin
9.6%
vs 3.1% median
+204% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
DT DT Dynatrace, Inc. | $11.4B | 22.7x | +9.9% | 9.6% | Buy | +30.4% |
DDO DDOG Datadog, Inc. | $46.8B | 67.0x | +23.6% | 3.1% | Buy | +21.5% |
APM APM Aptorum Group Limited | $5M | — | -84.8% | -1644.3% | — | — |
EST ESTC Elastic N.V. | $5.2B | 19.4x | +11.8% | -5.0% | Buy | +71.8% |
PD PD PagerDuty, Inc. | $629M | 6.1x | +7.7% | 35.3% | Hold | +116.1% |
AMZ AMZN Amazon.com, Inc. | $2.96T | 35.3x | +10.0% | 12.2% | Buy | +11.6% |
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 1.5% annually — null% through dividends and 1.5% through buybacks.
Dividend UnknownFCF Unknown
Total Shareholder Yield
1.5%
Dividend + buyback return per year
Buyback Yield
1.5%
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
$173M
Estimated Shares Retired
5M
Approx. Share Reduction
1.5%
Shares Outstanding
Current diluted share count from the screening snapshot
304M
At 1.5%/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, 26 rate it Buy or Strong Buy, 8 rate it Hold, and 0 rate it Sell or Strong Sell. The consensus 12-month price target is $50, implying +30.4% from the current price of $38.
02What is the DT stock price target for 2026?
The Wall Street consensus price target for DT is $50 based on 34 analyst estimates. The high-end target is $64 (+67.5% from today), and the low-end target is $37 (-3.2%). The base case model target is $39.
03Is Dynatrace, Inc. (DT) stock overvalued in 2026?
DT trades at 22.7x times forward earnings. The stock's valuation is broadly in line with the broader market. Based on current multiples versus the peer group, the relative model signals significantly undervalued. 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) Market and Sector Volatility — Dynatrace operates in the technology and software sectors, which are prone to significant price and volume fluctuations. (2) Growth Sustainability and Execution — Concerns regarding the sustainability of Dynatrace's growth are heightened by potential challenges in enterprise software demand and shifting AI-related spending priorities. (3) AI-Related Risks — Investors are increasingly concerned about structural risks to SaaS business models posed by AI agents. 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 $2.1B (+9.9% year-over-year) and EPS of $1.45 (+137.8% year-over-year) for the upcoming fiscal year. The following year, analysts project $2.6B in revenue.
06When does Dynatrace, Inc. (DT) report its next earnings?
Dynatrace, Inc. is expected to report its next earnings on approximately 2026-05-13. Consensus expects EPS of $0.39 and revenue of $521M. 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 $466M in free cash flow over the trailing twelve months — a free cash flow margin of 24.1%. DT returns capital to shareholders through and share repurchases ($173M TTM).