Dynatrace (DT) can accelerate its subscription growth after delivering better-than-expected fiscal Q3 results, RBC Capital Markets said in a Monday note.

"We like the consistency and still believe the foundation is set for acceleration in FY/27," the report said.

Dynatrace can benefit from increased enterprise AI adoption, which will become a tailwind as consumption grows over 20% and an improved go-to-market motion that should further aid land-and-expands, the report said.

The note also said its net new annual recurring revenue growth in fiscal 2026 will determine the path for subscription revenue growth in fiscal 2027.

RBC maintained its outperform rating and a $56 price target.

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