DT
Dynatrace, Inc.

Dynatrace, Inc.DT

Technology · Software - Application
43.44USD
-0.59%
Nov 09, 2026
DT overview ready
AI-powered observability platform enabling enterprise cloud-native and AI workloads
Direct platform enabler for enterprise teams operating cloud-native applications and AI workloads; it is not a pure-play AI-workload vendor because its installed base and revenue exposure remain broader observability, security, and automation.
Primary theme is weakening
DevOps, Observability & IT Operations is weakening (-1.4pp vs SPY over 21 sessions; 3 of 6 members ahead of SPY).
Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
Attractive valuation
Current market expectations look undemanding relative to how much growth and cash flow it delivers per turn of revenue multiple.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Competition from other observability and cloud monitoring vendors.
Market Nov 6Filing Sep 30Price action Nov 8Research Jul 23

Conviction Level

PriceAction3.4BusinessPerformance7.0BusinessQuality7.3Valuation8.9ThemeMomentum3.0Improving — Revenue is growing at a steady pace (+17% year over year). Diluted EPS growth has strengthened to +21% year over year ($0.23), up from -89%. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
−1.4pp
Theme return
−6.4%
Beating SPY
3 of 6
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
EntryWeak / unconfirmed recovery

The daily chart may be improving, but the weekly fast averages have not been reclaimed — the recovery is not yet confirmed on the higher timeframe.

Key Financials

Market Cap
$12.5B
Avg Volume (60D)
8.0M
60 sessions
Revenue Growth YoY
+18.8%
FY2026 vs FY2025
Gross Margin
+81.0%
Trailing twelve months
Operating Margin
+12.7%
Trailing twelve months
Free Cash Flow Yield
+4.6%
Distance from 200DMA
-2.8%
P/E
77.0x
EV / Sales
5.4x
Market metrics as of Nov 6, 2026
Financial results for the period ended Sep 30, 2026
Filed balance-sheet data as of Sep 30, 2026

Business Performance

Improving

Revenue is growing at a steady pace (+17% year over year). Diluted EPS growth has strengthened to +21% year over year ($0.23), up from -89%.

Latest reported: Q2 FY2027, ended Sep 30
Revenue growthGrowing
+17%
$580M in Q2 FY2027 · YoY
YoY growth, last 4 quarters
  1. +18%
  2. +19%
  3. +16%
  4. +17%
Earnings growthAccelerating
+21%
Diluted EPS $0.23 vs $0.19 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. -89%
  2. -54%
  3. -25%
  4. +21%
Operating marginStable
16.5%
+1.7 pp YoY · gross margin 80.6% (-1.3 pp)

Business Quality

7.3 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Two of the three valuation perspectives say cheap; peers is the dissenting view.
Dynatrace, Inc. has a Cheap valuation stance because current market expectations look undemanding relative to how much growth and cash flow it delivers per turn of revenue multiple.

Company Research

Thesis
Direct platform enabler for enterprise teams operating cloud-native applications and AI workloads; it is not a pure-play AI-workload vendor because its installed base and revenue exposure remain broader observability, security, and automation. The story is still emerging, so the exposure is real but early.
Opportunity
Moderate opportunity
Enterprise adoption of production generative-AI and agentic applications increases the need to observe, troubleshoot, govern, optimize, and automate increasingly dynamic software and cloud environments.
Key risk
Competition from other observability and cloud monitoring vendors.

Economic classification

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Business & Markets

Technology · Software - Application
What they do

Dynatrace develops and operates an AI-powered observability platform that helps enterprises monitor, troubleshoot, and optimize complex digital ecosystems across cloud-native and AI workloads globally.

How it earns

Primarily subscription-based revenue from software licenses and related services including implementation, consulting, and training.

Products & services
AI-powered observability platform
Infrastructure observability
Application observability
Threat observability
Digital experience monitoring
Log analytics
Application security
Software delivery
Business analytics
Implementation and consulting services
Customers & end markets
Enterprise IT and DevOps teams
Cloud-native application operators
Organizations deploying AI workloads
Market position

Leader in AI-native observability with a broad installed base beyond pure AI workload monitoring.

Demand drivers
Low cyclicality

Driven by enterprise IT spending on digital transformation and cloud infrastructure, which tends to be stable and recurring.

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