What is Scotiabank's Forecast for Dynatrace FY2027 Earnings?

Key Points

• Scotiabank raised its FY2027 EPS estimate for Dynatrace to $1.07 from $0.97, while keeping a Sector Outperform rating and a $44 price target. The revised forecast is just below the broader consensus estimate of $1.08 per share.
• Dynatrace also reported a strong fiscal Q4, with EPS of $0.41 beating estimates and revenue of $531.7 million rising 19.4% year over year. The company reaffirmed its FY2027 outlook of $1.93 to $1.95 EPS.
• Despite the earnings beat, sentiment was mixed as several brokers trimmed price targets after the report, reflecting caution around near-term growth and guidance. Still, the stock continues to have broad support, with 20 Buy ratings and an average target price of $46.50.

Dynatrace, Inc. (NYSE:DT - Free Report) - Stock analysts at Scotiabank lifted their FY2027 EPS estimates for Dynatrace in a report released on Thursday, May 14th. Scotiabank analyst P. Colville now forecasts that the company will post earnings per share of $1.07 for the year, up from their previous estimate of $0.97. Scotiabank has a "Sector Outperform" rating and a $44.00 price objective on the stock. The consensus estimate for Dynatrace's current full-year earnings is $1.08 per share.

Dynatrace (NYSE:DT - Get Free Report) last released its quarterly earnings results on Wednesday, May 13th. The company reported $0.41 earnings per share for the quarter, topping the consensus estimate of $0.39 by $0.02. Dynatrace had a net margin of 8.06% and a return on equity of 10.37%. The business had revenue of $531.72 million for the quarter, compared to the consensus estimate of $521.01 million. During the same period last year, the firm earned $0.33 earnings per share. The company's quarterly revenue was up 19.4% on a year-over-year basis. Dynatrace has set its FY 2027 guidance at 1.930-1.950 EPS and its Q1 2027 guidance at 0.440-0.450 EPS.

Several other research analysts also recently weighed in on the stock. Canaccord Genuity Group decreased their price target on shares of Dynatrace from $50.00 to $46.00 and set a "buy" rating on the stock in a research report on Thursday. Citigroup decreased their price target on shares of Dynatrace from $60.00 to $50.00 and set a "buy" rating on the stock in a research report on Thursday. Jefferies Financial Group reduced their price objective on shares of Dynatrace from $50.00 to $45.00 and set a "buy" rating for the company in a research note on Thursday. DA Davidson reduced their price objective on shares of Dynatrace from $50.00 to $45.00 and set a "buy" rating for the company in a research note on Thursday. Finally, Guggenheim cut shares of Dynatrace from a "buy" rating to a "neutral" rating in a research note on Wednesday, May 13th. Twenty research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat, Dynatrace presently has an average rating of "Moderate Buy" and an average target price of $46.50.

Dynatrace Trading Up 0.0%

DT opened at $38.36 on Monday. Dynatrace has a 1-year low of $31.64 and a 1-year high of $57.55. The company has a market capitalization of $11.44 billion, a PE ratio of 71.04, a PEG ratio of 2.57 and a beta of 0.70. The firm's 50 day simple moving average is $37.12 and its two-hundred day simple moving average is $40.31.

Hedge Funds Weigh In On Dynatrace

Institutional investors have recently bought and sold shares of the stock. American Capital Management Inc. purchased a new position in shares of Dynatrace in the 1st quarter worth $38,987,000. The Manufacturers Life Insurance Company grew its stake in shares of Dynatrace by 15.7% in the 1st quarter. The Manufacturers Life Insurance Company now owns 202,114 shares of the company's stock worth $7,474,000 after buying an additional 27,376 shares in the last quarter. Quantinno Capital Management LP grew its stake in shares of Dynatrace by 75.8% in the 1st quarter. Quantinno Capital Management LP now owns 1,990,773 shares of the company's stock worth $73,619,000 after buying an additional 858,477 shares in the last quarter. Lazard Asset Management LLC grew its stake in shares of Dynatrace by 98.7% in the 1st quarter. Lazard Asset Management LLC now owns 242,418 shares of the company's stock worth $8,965,000 after buying an additional 120,426 shares in the last quarter. Finally, OMERS ADMINISTRATION Corp grew its stake in shares of Dynatrace by 14.7% in the 1st quarter. OMERS ADMINISTRATION Corp now owns 11,395 shares of the company's stock worth $421,000 after buying an additional 1,460 shares in the last quarter. 94.28% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, EVP Stephen A. Mcmahon bought 3,000 shares of the business's stock in a transaction that occurred on Tuesday, March 3rd. The stock was bought at an average cost of $35.75 per share, with a total value of $107,250.00. Following the completion of the purchase, the executive vice president owned 3,454 shares of the company's stock, valued at approximately $123,480.50. The trade was a 660.79% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 0.57% of the company's stock.

Dynatrace declared that its Board of Directors has approved a share repurchase program on Monday, February 9th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the company to repurchase up to 9.8% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's leadership believes its stock is undervalued.

Dynatrace News Roundup

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Dynatrace reported fiscal Q4 EPS of $0.41, topping estimates of $0.39, and revenue of $531.7 million, up 19.4% year over year, while recurring subscription revenue remained very high and free cash flow stayed strong. Dynatrace shares slide despite quarterly earnings beat
• Positive Sentiment: Several brokers kept bullish views despite trimming targets, including Scotiabank, JPMorgan, Citigroup, and BMO, signaling continued confidence in Dynatrace’s long-term software and observability franchise. Scotiabank Sticks to Their Buy Rating for Dynatrace (DT)
• Neutral Sentiment: Analyst commentary today was mostly mixed-to-bullish overall, with some articles highlighting favorable tech-stock sentiment for Dynatrace but also noting conflicting views across analysts. Analysts Have Conflicting Sentiments on These Technology Companies
• Neutral Sentiment: Some commentary suggested Dynatrace could benefit from broader software and AI observability trends, but these were more thematic than company-specific catalysts. Can Dynatrace Benefit From Russell 1000 Software Trends?
• Negative Sentiment: Despite the earnings beat, investors were disappointed by mixed FY2027 and near-term guidance, including concerns about slower ARR growth and a softer first-quarter outlook. Dynatrace stock falls on fiscal Q4 earnings, mixed 2027 guidance
• Negative Sentiment: Wall Street lowered several price targets after the report, including JPMorgan, Citigroup, Scotiabank, and BMO, reflecting a more cautious stance on near-term upside. Dynatrace NYSE: DT Price Target Lowered to $45.00 at JPMorgan Chase & Co.

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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