Dynatrace (NYSE:DT) Shares Gap Up After Better-Than-Expected Earnings

Dynatrace, Inc. (NYSE:DT) shares gapped up prior to trading on Monday following a better than expected earnings announcement. The stock had previously closed at $33.71, but opened at $38.29. Dynatrace shares last traded at $35.4890, with a volume of 3,237,449 shares changing hands.

The company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.41 by $0.03. The firm had revenue of $515.47 million for the quarter, compared to analyst estimates of $506.31 million. Dynatrace had a net margin of 9.55% and a return on equity of 9.75%. Dynatrace’s revenue for the quarter was up 18.2% compared to the same quarter last year. During the same quarter last year, the firm posted $0.37 earnings per share. Dynatrace has set its FY 2026 guidance at 1.670-1.690 EPS and its Q4 2026 guidance at 0.380-0.390 EPS.

Dynatrace declared that its board has authorized a stock buyback plan on Monday, February 9th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the company to reacquire up to 9.8% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Dynatrace News Roundup

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Q3 beat and raised guidance — Dynatrace reported $515.5M revenue and $0.44 EPS (both above estimates), lifted FY‑2026 guidance (EPS and revenue) and showed strong ARR/retention metrics, a clear catalyst for the rally. Dynatrace Reports Third-Quarter Fiscal Year 2026 Financial Results
• Positive Sentiment: $1.0 billion buyback — The Board authorized repurchases (~9.8% of shares outstanding), which reduces float and signals management confidence; that helps support the share price. RTT News – Stock Buybacks
• Positive Sentiment: Strong subscription metrics & product momentum — ARR (~$1.97B), 111% net retention and adoption of Dynatrace Intelligence (agentic AI operations) plus the DevCycle acquisition position the company for continued high‑quality recurring growth. Dynatrace earnings coverage
• Positive Sentiment: Some brokers remain bullish — Guggenheim reaffirmed a buy with a $68 target and KeyCorp raised its target to $52, giving upside scenarios that support investor interest. Guggenheim / TickerReport
• Neutral Sentiment: Analyst commentary & coverage pieces highlight the stock as a growth/value mix for investors, framing Dynatrace as essential infrastructure in cloud/AI environments (useful context but not an immediate price mover). Zacks – 3 Reasons Why Growth Investors Shouldn’t Overlook Dynatrace
• Negative Sentiment: Mixed/softer analyst targets — Several firms trimmed targets (Morgan Stanley to $43, Wells Fargo to $50, Scotiabank to $47; BTIG cut its target as well), reflecting sector valuation compression and capping some upside despite strong fundamentals. The Fly – Analyst Target Changes

Wall Street Analyst Weigh In

Several research analysts have commented on DT shares. BMO Capital Markets cut their price objective on Dynatrace from $56.00 to $45.00 and set an “outperform” rating on the stock in a research report on Monday. UBS Group dropped their target price on Dynatrace from $50.00 to $40.00 and set a “neutral” rating on the stock in a report on Tuesday. DA Davidson reduced their price target on Dynatrace from $65.00 to $50.00 and set a “buy” rating on the stock in a research report on Tuesday. Truist Financial lowered their price objective on shares of Dynatrace from $60.00 to $55.00 and set a “buy” rating for the company in a research report on Wednesday, November 19th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Dynatrace in a research note on Monday, December 29th. Twenty analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $53.00.

Insider Buying and Selling

In other Dynatrace news, EVP Dan Zugelder sold 7,505 shares of the company’s stock in a transaction that occurred on Wednesday, December 10th. The stock was sold at an average price of $45.27, for a total value of $339,751.35. Following the transaction, the executive vice president directly owned 8,925 shares of the company’s stock, valued at $404,034.75. This represents a 45.68% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CAO Daniel S. Yates sold 2,000 shares of the company’s stock in a transaction that occurred on Monday, November 17th. The shares were sold at an average price of $46.69, for a total value of $93,380.00. Following the sale, the chief accounting officer directly owned 23,380 shares in the company, valued at approximately $1,091,612.20. This represents a 7.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 9,843 shares of company stock worth $448,124. 0.57% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Dynatrace

Large investors have recently made changes to their positions in the business. Vanguard Group Inc. grew its position in shares of Dynatrace by 2.4% in the third quarter. Vanguard Group Inc. now owns 32,142,909 shares of the company’s stock valued at $1,557,324,000 after purchasing an additional 739,895 shares during the last quarter. Pictet Asset Management Holding SA raised its stake in shares of Dynatrace by 16.5% in the 4th quarter. Pictet Asset Management Holding SA now owns 14,648,533 shares of the company’s stock valued at $634,985,000 after buying an additional 2,076,990 shares in the last quarter. State Street Corp raised its position in Dynatrace by 2.8% in the third quarter. State Street Corp now owns 10,562,363 shares of the company’s stock worth $511,746,000 after purchasing an additional 286,352 shares in the last quarter. American Century Companies Inc. boosted its stake in Dynatrace by 0.9% in the 3rd quarter. American Century Companies Inc. now owns 7,919,446 shares of the company’s stock valued at $383,697,000 after buying an additional 73,827 shares in the last quarter. Finally, Wellington Management Group LLP boosted its stake in shares of Dynatrace by 719.3% in the 3rd quarter. Wellington Management Group LLP now owns 7,340,127 shares of the company’s stock valued at $355,629,000 after purchasing an additional 6,444,262 shares in the last quarter. Institutional investors and hedge funds own 94.28% of the company’s stock.

Dynatrace Trading Up 1.6%

The company’s fifty day moving average price is $41.62 and its two-hundred day moving average price is $46.06. The firm has a market cap of $11.09 billion, a P/E ratio of 60.28, a price-to-earnings-growth ratio of 2.85 and a beta of 0.84.

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.