A Business at a Glance
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Dynatrace, Inc.
DT
$12.5B
Mkt Cap
$41.62
+2.39%
Dynatrace, Inc. (DT) has a current P/E ratio of 69.4, compared to its historical median P/E of 59.9. The stock is currently considered Fair based on its historical valuation range.
Dynatrace, Inc. (DT) has a 5-year average return on invested capital (ROIC) of 9.6%. This is below average and may indicate limited pricing power.
Dynatrace, Inc. (DT) has a market capitalization of $12.5B. It is classified as a large-cap stock.
Dynatrace, Inc. (DT) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 3.82%.
Based on historical P/E analysis, Dynatrace, Inc. (DT) appears fair. The current P/E of 69.4 is 16% above its historical median of 59.9. The estimated fair value CAGR (P/E method) is 29.6%.
Dynatrace, Inc. (DT) operates in the Services-Prepackaged Software industry, within the Technology sector.
Dynatrace, Inc. (DT) reported annual revenue of $2.0 billion in its most recent fiscal year, based on SEC EDGAR filings.
Dynatrace is an AI-powered observability platform that enables organizations to analyze, automate, and optimize their hybrid and multicloud IT environments. The platform combines broad and deep observability, continuous runtime application security, and advanced AI capabilities—including causal, predictive, and generative AI through Davis CoPilot—to support IT operations, development, security, business, and executive teams. The company's core differentiator is Grail, a proprietary data lakehouse that stores logs, traces, metrics, real user data, and business events in an integrated, highly performant and massively scalable format, enabling contextual analysis of billions of interdependencies across applications, networks, and infrastructure. Dynatrace operates a subscription-based business model with a land-and-expand strategy, targeting large global enterprises and the Global 500 with a focus on end-to-end platform consolidation; the company generates revenue through annual recurring revenue (ARR) and on-demand consumption (ODC) of platform capabilities such as log management. The platform is built to scale seamlessly into AWS, Azure, GCP, and traditional on-premises and mainframe environments, and Dynatrace's automation capabilities—including OneAgent, Smartscape, AppEngine, and AutomationEngine—enable customers to discover environments, dynamically instrument applications, and create custom automations without extensive manual configuration.
【AI-driven platform acceleration】 Management expects fiscal 2027 to benefit from secular tailwinds in cloud modernization, AI workload proliferation, and vendor consolidation, with a focus on accelerating ARR growth through continued large enterprise consolidation opportunities and the monetization of agentic AI capabilities. The company anticipates robust consumption growth across the platform, particularly in log management and AI-assisted features, with fiscal 2027 representing the first full year of three-year DPS (Dynatrace Platform Suite) customer cohorts coming up for renewal, creating expansion opportunities as consumption grows. Management is extending strategic account coverage to approximately 150 additional customers beyond the Global 500 to improve density and drive new logo momentum, while also targeting developer personas as a new growth vector. The company expects to continue improving operational leverage through efficiency gains in sales, marketing, and G&A, though this will be partially offset by temporary gross margin headwinds from increased cloud hosting costs driven by robust consumption growth, with margin recovery expected to begin in fiscal 2028.
| Metric | Target | Period |
|---|---|---|
| ARR | $2.38 billion to $2.4 billion | FY2027 |
| ARR growth | 15.5% to 16.5% | FY2027 |
| Net new ARR (adjusted for FX) | $320 million to $340 million | FY2027 |
| Total revenue | $2.32 billion to $2.34 billion | FY2027 |
| Subscription revenue | $2.22 billion to $2.24 billion | FY2027 |
| Non-GAAP operating margin | approximately 29.5% | FY2027 |
| Non-GAAP net income | $584 million to $594 million | FY2027 |
| Non-GAAP EPS | $1.93 to $1.95 | FY2027 |
| Free cash flow margin | 26.5% | FY2027 |
| Q1 FY2027 total revenue | $547 million to $551 million | Q1 FY2027 |
| Q1 FY2027 subscription revenue |
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call, Q4 FY2026 Earnings Call, Q3 FY2026 Earnings Call
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 2.0B | 2.0B | 1.7B | 1.4B | 1.2B | 929M |
| Net Income | 163M | 163M | 484M | 155M | 108M | 52M |
| EPS | $0.54 | $0.54 | $1.59 | $0.52 | $0.37 | $0.18 |
| Free Cash Flow | 530M | 530M | 433M | 352M | 333M | 233M |
| ROIC | 8.8% | 9.4% | 13.1% | 11.5% | 8.6% | 5.2% |
| Gross Margin | 50.1% | 50.1% | 48.5% | 45.5% | 41.4% | 40.4% |
| Debt/Equity | 0.00 | 0.69 | 0.58 | 0.69 | 0.00 | 0.21 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 245M | 245M | 179M | 128M | 93M | 81M |
| Operating Margin | 12.2% | 12.2% | 10.6% | 9.0% | 8.0% | 8.7% |
| ROE | 6.2% | 6.2% | 20.9% | 8.5% | 7.4% | 4.3% |
| Shares Outstanding | 301M | 301M | 304M | 297M | 292M | 291M |
| Metric | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | ||||||||||
| Revenue | 398M | 431M | 546M | 704M | 929M | 1.2B | 1.4B | 1.7B | 2.0B | 2.0B |
| Gross Margin | 75.7% | 75.2% | 76.4% | 43.3% | 40.4% | 41.4% | 45.5% | 48.5% | 50.1% | 50.1% |
| R&D | 58M | 77M | 119M | 111M | 156M | 218M | 305M | 385M | 474M | 474M |
| SG&A | 64M | 92M | 162M | 92M | 127M | 150M | 174M | 195M | 217M | 217M |
| EBIT | -22M | -73M | -172M | 92M | 81M | 93M | 128M | 179M | 245M | 245M |
| Op. Margin | -5.5% | -16.9% | -31.5% | 13.1% | 8.7% | 8.0% | 9.0% | 10.6% | 12.2% | 12.2% |
| Net Income | 9.2M | -116M | -414M | 76M | 52M | 108M | 155M | 484M | 163M | 163M |
| Net Margin | 2.3% | -27.0% | -75.8% | 10.8% | 5.6% | 9.3% | 10.8% | 28.5% | 8.1% | 8.1% |
| Non-Recurring | 4.6M | 1.7M | 900K | 0 | 0 | 141K | 0 | 0 | 0 | 0 |
| Returns on Capital | ||||||||||
| ROIC | -29.6% | -65.9% | -39.5% | 7.3% | 5.2% | 8.6% | 11.5% | 13.1% | 9.4% | 8.8% |
| ROE | -3.5% | 35.3% | -143.8% | 7.3% | 4.3% | 7.4% | 8.5% | 20.9% | 6.2% | 6.2% |
| ROA | 12.6% | -12.3% | -21.5% | 3.5% | 2.2% | 4.1% | 5.0% | 12.8% | 3.8% | 3.7% |
| Cash Flow | ||||||||||
| Op. Cash Flow | 119M | 147M | -142M | 220M | 251M | 355M | 378M | 459M | 562M | 562M |
| Free Cash Flow | 107M | 140M | -162M | 206M | 233M | 333M | 352M | 433M | 530M | 530M |
| Owner Earnings | 88M | 69M | -373M | 154M | 141M | 196M | 114M | 140M | 238M | 238M |
| CapEx | 12M | 7.4M | 20M | 14M | 18M | 22M | 26M | 26M | 32M | 32M |
| Maint. CapEx | 8.8M | 7.3M | 7.9M | 9.0M | 11M | 13M | 55M | 48M | 24M | 24M |
| Growth CapEx | 2.8M | 77K | 12M | 5.1M | 7.1M | 9.0M | 0 | 0 | 8.1M | 8.1M |
| D&A | 8.8M | 7.3M | 7.9M | 9.0M | 11M | 13M | 55M | 48M | 24M | 24M |
| CapEx/OCF | N/A | N/A | N/A | 6.4% | 7.1% | 6.1% | 7.0% | 5.7% | N/A | 5.7% |
| Capital Allocation | ||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 885K | 649K | 156K | 49K | 66K | 0 | 0 | 173M | 479M | 479M |
| Buyback Yield | 0.0% | N/A | 0.0% | 0.0% | 0.0% | 0.0% | N/A | 1.2% | 0.0% | 3.8% |
| Stock-Based Comp | 22M | 71M | 222M | 58M | 100M | 147M | 209M | 272M | 300M | 300M |
| Debt Repayment | 0 | 16M | 515M | 120M | 120M | 281M | 0 | 0 | 0 | 0 |
| Balance Sheet | ||||||||||
| Net Debt | -78M | 970M | 297M | 67M | -189M | -555M | N/A | N/A | N/A | -1.1B |
| Cash & Equiv. | 78M | 51M | 213M | 325M | 463M | 555M | 779M | 1.0B | 1.1B | 1.1B |
| Long-Term Debt | 0 | 1.0B | 510M | 392M | 274M | 0 | N/A | N/A | N/A | N/A |
| Debt/Equity | 0.00 | -2.62 | 0.53 | 0.35 | 0.21 | 0.00 | 0.69 | 0.58 | 0.69 | 0.00 |
| Interest Coverage | -0.6 | -1.0 | -3.8 | 6.5 | 7.8 | 10.8 | 91.7 | 179.4 | 306.7 | 306.7 |
| Equity | -269M | -390M | 966M | 1.1B | 1.3B | 1.6B | 2.0B | 2.6B | 2.6B | 2.6B |
| Total Assets | 73M | 1.8B | 2.0B | 2.3B | 2.5B | 2.8B | 3.4B | 4.1B | 4.4B | 4.4B |
| Total Liabilities | 27M | 2.2B | 1.1B | 1.1B | 1.2B | 1.2B | 1.4B | 1.5B | 1.8B | 1.8B |
| Intangibles | N/A | 259M | 202M | 149M | 106M | 64M | 51M | 26M | 23M | 23M |
| Retained Earnings | N/A | -176M | -590M | -514M | -461M | -353M | -199M | 285M | 448M | 448M |
| Working Capital | N/A | -738M | -2.4M | 32M | 83M | 81M | 347M | 550M | 554M | 554M |
| Current Assets | N/A | 213M | 488M | 680M | 948M | 1.1B | 1.6B | 1.9B | 2.1B | 2.1B |
| Current Liabilities | N/A | 951M | 490M | 648M | 866M | 1.0B | 1.3B | 1.4B | 1.6B | 1.6B |
| Per Share Data | ||||||||||
| EPS | N/A | N/A | -1.56 | 0.26 | 0.18 | 0.37 | 0.52 | 1.59 | 0.54 | 0.54 |
| Owner EPS | N/A | N/A | -1.41 | 0.53 | 0.48 | 0.67 | 0.38 | 0.46 | 0.79 | 0.79 |
| Book Value | N/A | N/A | 3.64 | 3.82 | 4.48 | 5.50 | 6.78 | 8.62 | 8.67 | 8.67 |
| Cash Flow/Share | N/A | N/A | -0.54 | 0.76 | 0.86 | 1.22 | 1.27 | 1.51 | 1.87 | 0.62 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | N/A | N/A | 265.3M | 291.2M | 291.4M | 291.8M | 297.4M | 304.2M | 301.2M | 301.2M |
| Valuation | ||||||||||
| P/E Ratio | N/A | N/A | N/A | 182.0 | 264.9 | 106.0 | 89.3 | 30.5 | N/A | 77.1 |
| P/FCF | N/A | N/A | N/A | 66.8 | 59.6 | 34.3 | 39.3 | 34.0 | N/A | 23.7 |
| EV/EBIT | N/A | N/A | N/A | 147.2 | 162.9 | 117.3 | N/A | N/A | N/A | 46.6 |
| Price/Book | N/A | N/A | 7.2 | 12.4 | 10.7 | 7.1 | 6.9 | 5.6 | N/A | 4.8 |
| Price/Sales | N/A | N/A | 12.8 | 16.7 | 18.3 | 9.8 | 10.3 | 9.1 | N/A | 6.2 |
| FCF Yield | N/A | N/A | -2.3% | 1.5% | 1.7% | 2.9% | 2.5% | 2.9% | N/A | 4.2% |
| Market Cap | 0 | N/A | 6.9B | 13.8B | 13.9B | 11.4B | 13.8B | 14.7B | 0 | 12.5B |
| Avg. Price | 0.00 | N/A | 24.67 | 40.24 | 58.36 | 38.93 | 49.54 | 50.69 | 0.00 | 41.62 |
| Year-End Price | 0.00 | N/A | 24.49 | 47.33 | 47.69 | 39.21 | 46.44 | 48.42 | 0.00 | 41.62 |
Dynatrace, Inc. passes 3 of 9 quality checks, indicating weak fundamentals.
Dynatrace, Inc. trades at 69.4x trailing earnings, compared to its 15-year median P/E of 59.9x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 26.7x vs a median of 39.3x. The company's 5-year average ROIC is 9.6% with a gross margin of 45.2%. Total shareholder yield (buybacks) is 3.8%. At current prices, the estimated annualized return to fair value is +33.7%.
Dynatrace, Inc. (DT) has a net profit margin of 8.1%. This is a modest margin.
Dynatrace, Inc. (DT) generated $530 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Dynatrace, Inc. (DT) has a debt-to-equity ratio of 0.69. This indicates moderate leverage.
Dynatrace, Inc. (DT) reported earnings per share (EPS) of $0.54 in its most recent fiscal year.
Dynatrace, Inc. (DT) has a return on equity (ROE) of 6.2%. This indicates moderate shareholder returns.
Dynatrace, Inc. (DT) has a 5-year average gross margin of 45.2%. This indicates decent pricing power.
The Ledger Terminal provides 9 years of financial data for Dynatrace, Inc. (DT), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Dynatrace, Inc. (DT) has a book value per share of $8.67, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects fiscal 2027 to benefit from secular tailwinds in cloud modernization, AI workload proliferation, and vendor consolidation, with a focus on accelerating ARR growth through continued large enterprise consolidation opportunities and the monetization of agentic AI capabilities. The company anticipates robust consumption growth across the platform, particularly in log management and AI-assisted features, with fiscal 2027 representing the first full year of three-year DPS (Dynatrace Platform Suite) customer cohorts coming up for renewal, creating expansion opportunities as consumption grows. Management is extending strategic account coverage to approximately 150 additional customers beyond the Global 500 to improve density and drive new logo momentum, while also targeting developer personas as a new growth vector. The company expects to continue improving operational leverage through efficiency gains in sales, marketing, and G&A, though this will be partially offset by temporary gross margin headwinds from increased cloud hosting costs driven by robust consumption growth, with margin recovery expected to begin in fiscal 2028.
Based on recent SEC filings and earnings calls, Dynatrace, Inc. (DT) has provided the following forward guidance: ARR: $2.38 billion to $2.4 billion (FY2027); ARR growth: 15.5% to 16.5% (FY2027); Net new ARR (adjusted for FX): $320 million to $340 million (FY2027); Total revenue: $2.32 billion to $2.34 billion (FY2027); Subscription revenue: $2.22 billion to $2.24 billion (FY2027), plus 8 additional metrics.
| $523 million to $527 million |
| Q1 FY2027 |
| Q1 FY2027 non-GAAP operating margin | 27.5% to 28% | Q1 FY2027 |
| Q1 FY2027 non-GAAP EPS | $0.44 to $0.45 | Q1 FY2027 |
ARR (FY2027): “We expect ARR to be between $2.38 billion and $2.4 billion, representing ARR growth of 15.5% - 16.5%.”
ARR growth (FY2027): “We expect ARR to be between $2.38 billion and $2.4 billion, representing ARR growth of 15.5% - 16.5%.”
Net new ARR (adjusted for FX) (FY2027): “This ARR guide implies full-year net new ARR, adjusted for foreign exchange movements, of $320 million-$340 million, growing 16%-23% and accelerating from fiscal 2026 levels.”
Total revenue (FY2027): “We expect total revenue to be between $2.32 billion and $2.34 billion.”
Subscription revenue (FY2027): “Underlying that, subscription revenue is expected to be between $2.22 billion and $2.24 billion, both up 14%-15%.”
Non-GAAP operating margin (FY2027): “We expect non-GAAP operating margin of approximately 29.5%.”
Non-GAAP net income (FY2027): “We expect non-GAAP net income to be $584 million-$594 million, resulting in non-GAAP EPS of $1.93-$1.95 per diluted share based on 302 million-304 million shares outstanding.”
Non-GAAP EPS (FY2027): “We expect non-GAAP net income to be $584 million-$594 million, resulting in non-GAAP EPS of $1.93-$1.95 per diluted share based on 302 million-304 million shares outstanding.”