Dynatrace (NYSE:DT) Shares Gap Up Following Strong Earnings

Dynatrace, Inc. (NYSE:DT) gapped up prior to trading on Monday following a stronger than expected earnings report. 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 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.03. Dynatrace had a net margin of 27.33% and a return on equity of 9.24%. The firm had revenue of $515.47 million for the quarter, compared to the consensus estimate of $506.31 million. During the same period in the prior year, the firm earned $0.37 EPS. The firm’s revenue for the quarter was up 18.2% on a year-over-year basis. 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 News Roundup

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Raised Q4 guidance — Dynatrace gave Q4 FY2026 EPS guidance of $0.380–$0.390 versus the consensus ~$0.300 and revenue guidance of $518M–$523M versus ~ $514M, signaling stronger near-term profitability and topline momentum. View Press Release
• Positive Sentiment: Upside to FY2026 outlook — management set FY2026 EPS at $1.670–$1.690 versus consensus ~$1.340, while FY revenue guidance was roughly in line at ~$2.0B. The raised earnings outlook reduces near‑term execution uncertainty. View Press Release
• Positive Sentiment: Q3 results beat — reported EPS $0.44 vs. consensus $0.41 and revenue $515.47M vs. ~$506M; management said results exceeded the high end of guidance and highlighted double‑digit net new ARR growth for three consecutive quarters, underscoring customer adoption of its AI‑powered observability platform. Dynatrace Reports Third Quarter Fiscal Year 2026 Financial Results
• Neutral Sentiment: Technical/valuation context — DT is trading below its 50‑day ($41.95) and 200‑day ($46.31) moving averages and sits between its 12‑month low ($32.83) and high ($63.00). Market cap ~ $10.2B and PE ~20.2; investors may watch whether guidance-driven momentum can push the stock back above these moving averages.
• Neutral Sentiment: Pre-earnings coverage — several preview and earnings‑summary pieces circulated around the report (MSN, Zacks, local outlets), which helped amplify attention but added little new information beyond the official release. Dynatrace (DT) Tops Q3 Earnings and Revenue Estimates

Wall Street Analysts Forecast Growth

DT has been the topic of several analyst reports. Cantor Fitzgerald reduced their target price on shares of Dynatrace from $51.00 to $37.00 and set a “neutral” rating on the stock in a report on Friday. Citigroup decreased their price objective on shares of Dynatrace from $64.00 to $60.00 and set a “buy” rating for the company in a research report on Friday, January 16th. Rosenblatt Securities cut their price target on Dynatrace from $67.00 to $60.00 and set a “buy” rating on the stock in a research note on Friday, January 30th. KeyCorp decreased their price target on Dynatrace from $60.00 to $50.00 and set an “overweight” rating for the company in a report on Wednesday, February 4th. Finally, Truist Financial dropped their price objective on Dynatrace from $60.00 to $55.00 and set a “buy” rating on the stock in a report on Wednesday, November 19th. Eighteen investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $58.32.

Insider Activity

In other news, CEO Rick M. Mcconnell sold 30,000 shares of the company’s stock in a transaction dated Tuesday, November 11th. The shares were sold at an average price of $46.61, for a total value of $1,398,300.00. Following the completion of the sale, the chief executive officer directly owned 108,125 shares of the company’s stock, valued at approximately $5,039,706.25. This represents a 21.72% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Dan Zugelder sold 7,505 shares of the business’s stock in a transaction dated Wednesday, December 10th. The shares were sold at an average price of $45.27, for a total value of $339,751.35. Following the completion of the transaction, the executive vice president owned 8,925 shares in the company, valued at $404,034.75. This trade represents a 45.68% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 39,843 shares of company stock valued at $1,846,424. 0.57% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of DT. V Square Quantitative Management LLC purchased a new position in Dynatrace in the 4th quarter valued at about $26,000. Cornerstone Planning Group LLC raised its position in shares of Dynatrace by 561.4% in the third quarter. Cornerstone Planning Group LLC now owns 582 shares of the company’s stock valued at $28,000 after buying an additional 494 shares during the last quarter. MAI Capital Management lifted its stake in shares of Dynatrace by 122.4% during the second quarter. MAI Capital Management now owns 547 shares of the company’s stock valued at $30,000 after buying an additional 301 shares during the period. VSM Wealth Advisory LLC acquired a new stake in Dynatrace during the second quarter worth approximately $34,000. Finally, Eastern Bank acquired a new position in Dynatrace in the 2nd quarter valued at $35,000. Institutional investors and hedge funds own 94.28% of the company’s stock.

Dynatrace Stock Performance

The company has a market capitalization of $10.62 billion, a price-to-earnings ratio of 21.20, a P/E/G ratio of 2.66 and a beta of 0.84. The company has a fifty day simple moving average of $41.95 and a two-hundred day simple moving average of $46.31.

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.