Dynatrace Inc (NYSE:DT) reported better-than-expected third-quarter financial results and raised its FY26 guidance above estimates on Monday.
Dynatrace reported quarterly earnings of 44 cents per share which beat the analyst consensus estimate of 41 cents per share. The company reported quarterly sales of $515.473 million which beat the analyst consensus estimate of $505.777 million.
Dynatrace raised its FY2026 adjusted EPS guidance from $1.62-$1.64 to $1.67-$1.69 and increased sales guidance from $1.985 billion-$1.995 billion to $2.005 billion-$2.010 billion.
“Our third quarter results surpassed the high end of our guidance across all top line growth and profitability metrics. Notably, we’ve generated double-digit net new ARR growth for three consecutive quarters, which reflects the growing number of enterprises adopting Dynatrace as their end-to-end observability platform,” said Rick McConnell, CEO of Dynatrace. “As organizations broadly deploy AI, observability is mission critical to managing the reliability and performance of those workloads. The Dynatrace platform combines the strengths of deterministic and agentic AI to deliver trustworthy insights that drive optimal business outcomes.”
Dynatrace shares gained 0.5% to $36.40 in pre-market trading.
These analysts made changes to their price targets on Dynatrace following earnings announcement.
- BMO Capital analyst Keith Bachman maintained Dynatrace with an Outperform rating and lowered the price target from $56 to $45.
- Keybanc analyst Eric Heath maintained the stock with an Overweight rating and raised the price target from $50 to $52.
Considering buying DT stock? Here’s what analysts think:
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