Dynatrace Analysts Cut Their Forecasts After Q4 Earnings

Dynatrace, Inc (NYSE:DT) on Wednesday reported upbeat fourth-quarter financial results and issued first-quarter sales guidance below estimates. Dynatrace reported quarterly earnings of 41 cents per share which beat the analyst consensus estimate of 39 cents per share. The company reported quarterly sales of $531.716 million which beat the analyst consensus estimate of $520.670 million. Dynatrace said it sees first-quarter adjusted EPS of 44 cents to 45 cents, versus market estimates of 45 cents. The company sees sales of $547.000 million to $551.000 million, versus estimates of $552.627 million. “Dynatrace delivered a strong finish to FY26, surpassing $2 billion in ARR and achieving our fourth consecutive quarter of 16% constant currency ARR growth,” said Rick McConnell, CEO of Dynatrace. “In an AI‑first world, observability has become mission critical to a vastly higher percentage of workloads. Customers are choosing Dynatrace for our end‑to‑end platform, which serves as both the intelligence engine for deterministic AI and contextual analytics, as well as the control plane to coordinate agentic action. By enabling system resilience and AI reliability, Dynatrace is helping customers drive more autonomous operations and optimal business outcomes. As we look ahead, our objective is to accelerate ARR growth while delivering balanced growth and profitability.” Dynatrace shares gained 4.1% to trade at $36.13 on Thursday. These analysts made changes to their price targets on Dynatrace following earnings announcement. BMO Capital analyst Keith Bachman maintained the stock with an Outperform rating and lowered the price target from $45 to $43. Barclays analyst Raimo Lenschow maintained the stock with an Overweight rating and cut the price target from $47 to $44. Considering buying DT stock? Here’s what analysts think: Photo via Shutterstock