Dynatrace (NYSE:DT) Releases FY 2027 Earnings Guidance

Key Points

• Dynatrace raised its FY 2027 EPS guidance to $1.97–$1.99, well above the $1.78 analyst consensus, while maintaining revenue guidance at approximately $2.3 billion. Q2 2027 EPS guidance was set at $0.48–$0.49.
• Shares rose 2.8% to open at $45.77 after the company’s latest quarterly results beat expectations, with EPS of $0.48 versus $0.44 expected and revenue of $554.55 million versus $549.46 million forecast.
• Analyst sentiment remains positive, with a “Moderate Buy” consensus rating and an average price target of $49.81; institutional investors own 94.28% of Dynatrace’s stock.

Dynatrace (NYSE:DT - Get Free Report) updated its FY 2027 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 1.970-1.990 for the period, compared to the consensus earnings per share estimate of 1.780. The company issued revenue guidance of $2.3 billion-$2.3 billion, compared to the consensus revenue estimate of $2.3 billion. Dynatrace also updated its Q2 2027 guidance to 0.480-0.490 EPS.

Dynatrace Stock Up 2.8%

Shares of Dynatrace stock opened at $45.77 on Wednesday. Dynatrace has a 12-month low of $31.64 and a 12-month high of $53.20. The company has a market capitalization of $13.28 billion, a price-to-earnings ratio of 84.77, a PEG ratio of 2.87 and a beta of 0.72. The firm's 50-day moving average price is $42.97 and its two-hundred day moving average price is $39.37.

Dynatrace (NYSE:DT - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported $0.48 EPS for the quarter, beating the consensus estimate of $0.44 by $0.04. The company had revenue of $554.55 million during the quarter, compared to analysts' expectations of $549.46 million. Dynatrace had a net margin of 8.06% and a return on equity of 10.37%. Dynatrace has set its Q2 2027 guidance at 0.480-0.490 EPS and its FY 2027 guidance at 1.970-1.990 EPS. On average, sell-side analysts expect that Dynatrace will post 1.11 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the company. Citigroup cut their target price on Dynatrace from $60.00 to $50.00 and set a "buy" rating for the company in a research note on Thursday, May 14th. Canaccord Genuity Group lowered their price target on Dynatrace from $50.00 to $46.00 and set a "buy" rating for the company in a report on Thursday, May 14th. Morgan Stanley dropped their price objective on Dynatrace from $43.00 to $40.00 and set an "equal weight" rating for the company in a research report on Thursday, May 14th. William Blair assumed coverage on Dynatrace in a research note on Thursday, May 21st. They issued an "outperform" rating on the stock. Finally, Rosenblatt Securities reiterated a "buy" rating and issued a $52.00 target price on shares of Dynatrace in a research report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $49.81.

Institutional Investors Weigh In On Dynatrace

A number of institutional investors have recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. lifted its position in shares of Dynatrace by 21.3% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,548 shares of the company's stock worth $85,000 after purchasing an additional 272 shares during the period. Quarry LP increased its position in shares of Dynatrace by 251.1% during the fourth quarter. Quarry LP now owns 2,219 shares of the company's stock worth $96,000 after buying an additional 1,587 shares during the period. Jones Financial Companies Lllp increased its position in shares of Dynatrace by 19.2% during the first quarter. Jones Financial Companies Lllp now owns 2,161 shares of the company's stock worth $102,000 after buying an additional 348 shares during the period. UMB Bank n.a. boosted its position in Dynatrace by 12.7% during the fourth quarter. UMB Bank n.a. now owns 3,190 shares of the company's stock valued at $138,000 after acquiring an additional 360 shares during the last quarter. Finally, Arax Advisory Partners grew its holdings in Dynatrace by 306.6% during the 4th quarter. Arax Advisory Partners now owns 3,253 shares of the company's stock worth $141,000 after acquiring an additional 2,453 shares during the period. Institutional investors own 94.28% of the company's stock.

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.

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