Dynatrace, Inc. (DT)

Price$51.90Cached quoteAs of 2026-09-05 05:07 UTC

AI: Fair-priced

Price checkThe shares look fair, but investors are already paying for sustained mid-teens growth.

Using roughly 289 million shares, the observed market price implies about a $14.8 billion equity value. That is about 24 times management’s fiscal 2027 adjusted free cash flow midpoint of $612.5 million; this measure approximates cash left after running and investing, with specified adjustments. Trailing cash after operations and capital spending was about $571 million, implying roughly 26 times, while guided revenue implies about 6.4 times sales. The Arize deal should lower adjusted operating margin by 1.75 points this year, so the post-deal cash multiple may be higher and leaves little value-investor margin of safety.

Big pictureRevenue and cash keep growing, while subscriptions soften short-term swings in customer spending.

Fiscal 2026 revenue rose 18.8% to $2.02 billion, operating income rose 36.8% to $245 million, and operating cash flow rose 22.3% to $562 million. Fiscal 2027 first-quarter revenue rose 16% to $555 million, including $530 million of subscription revenue. Annual recurring revenue—the yearly value of active subscription commitments—reached $2.136 billion, up 17%, reducing but not removing spending-cycle risk. Cash left after operations and capital spending was about $530 million in fiscal 2026 and $303 million in the quarter. Fiscal 2025 net income was boosted by a tax restructuring that created a $320.9 million benefit, so cash is cleaner.

Business strengthA strong cash cushion and buybacks have recently reduced the total share count.

Dynatrace had $1.06 billion of cash and no debt at June 30. It later issued $1.4375 billion of zero-interest notes due 2031 and plans about $815 million of cash consideration for Arize; after announced financing costs and repurchases, cash would be roughly equal to debt before intervening cash flows. Capital returns are meaningful: buybacks were $479 million in fiscal 2026, $275 million in the latest quarter, and another $135 million alongside the notes. Stock compensation was about $301 million over the latest twelve months, but shares still fell from 301.7 million to 290.3 million year over year.

What could change the storyFaster AI-driven growth could justify the price, but the Arize deal must earn its cost.

The bull case is real acceleration: first-quarter organic net new annual recurring revenue grew 41%, logs consumption exceeded a $200 million annualized pace, and Arize is expected to add about two percentage points to fiscal 2027 recurring-revenue growth. The bear case is paying for that growth before it arrives. Arize costs $915 million and is expected to cut adjusted operating margin by 1.75 points this year. The current valuation works best if growth stays around the mid-teens or improves and cash generation expands; low-teens growth with roughly flat cash would make the shares look expensive.

AI: News

First-quarter growth surpriseGrowth accelerated, cash stayed strong, and the earnings release triggered a sharp positive market response.

On August 5, Dynatrace reported first-quarter fiscal 2027 revenue of $555 million, up 16%, and annual recurring revenue of $2.136 billion, up 17%. Organic net new recurring revenue grew 41%, while adjusted earnings per share beat consensus estimates. Full-year adjusted free cash flow guidance was $610 million to $615 million. Shares rose about 11.3% that session. Because the release arrived before trading and financial coverage tied the move to the results, the earnings report is the clearest recent stock catalyst.

Arize acquisition announcedDynatrace agreed to buy Arize, adding AI monitoring growth but lowering near-term profit margins.

On August 13, Dynatrace agreed to acquire Arize for $915 million, including about $815 million in cash plus replacement employee equity awards. Management expects Arize to add about two percentage points to fiscal 2027 annual recurring revenue growth while reducing adjusted operating margin by about 1.75 percentage points. Shares finished about 2.4% higher that day, then fell about 3.2% the next session. That mixed reaction makes short-term attribution uncertain, but the deal clearly raises both growth potential and integration risk.

Zero-interest financingA large zero-interest debt sale preserved cash for Arize while limiting near-term share issuance.

On August 20, Dynatrace completed $1.4375 billion of zero-interest exchangeable notes due 2031, raising about $1.411 billion after offering costs. It used about $168 million for hedging arrangements and about $135 million to repurchase 2.83 million shares, with the remainder for general purposes. The hedge is designed to reduce conversion-related share dilution, although separate warrants could dilute owners at much higher prices. Shares fell about 3.1% on the proposal day and rose about 3.5% on pricing day, so the market response was mixed.

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Revenue

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Total cash / debt

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Financial statements

	2026	2025	2024	2023	2022	2021	2020	2019	2018
Revenue	$2.02B	$1.70B	$1.43B	$1.16B	$929.4M	$703.5M	$545.8M	$431.0M	$398.0M
Gross profit	$1.65B	$1.38B	$1.16B	$935.6M	$756.6M	$575.8M	$416.9M	$324.2M	$301.5M
Gross margin	81.56%	81.15%	81.37%	80.76%	81.40%	81.85%	76.38%	75.22%	75.75%
Research & development	$474.3M	$384.6M	$304.7M	$218.3M	$156.3M	$111.4M	$119.3M	$76.8M	$58.3M
Operating expenses	$1.40B	$1.20B	$1.04B	$842.8M	$675.3M	$483.9M	$588.8M	$396.9M	$323.3M
Operating income	$245.4M	$179.4M	$128.4M	$92.8M	$81.3M	$91.9M	−$171.9M	−$72.7M	−$21.8M
Operating margin	12.16%	10.56%	8.98%	8.01%	8.75%	13.06%	−31.50%	−16.87%	−5.47%
EBITDA	$269.4M	$227.6M	$183.3M	$105.3M	$91.9M	$100.9M	−$164.0M	−$65.4M	−$13.0M
EBITDA margin	13.35%	13.40%	12.81%	9.09%	9.89%	14.34%	−30.05%	−15.18%	−3.26%
Net income	$162.7M	$483.7M	$154.6M	$108.0M	$52.5M	$75.7M	−$413.8M	−$116.2M	$9.2M
Net profit margin	8.06%	28.47%	10.81%	9.32%	5.64%	10.76%	−75.82%	−26.96%	2.32%
Basic EPSper basic share	$0.54	$1.62	$0.53	$0.38	$0.18	$0.27	-$1.56	—	—
Diluted EPSper diluted share	$0.54	$1.59	$0.52	$0.37	$0.18	$0.26	-$1.56	—	—

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

12.04%of listed shares

BlackRock, Inc.34.95M shares · Jun 30, 2026

View holders

Top 20 reported holders of DT
Holder	% owned
BlackRock, Inc.	12.04%34.95M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	5.44%15.81M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.55%13.21M shares
Pictet Asset Management Holding SA	4.40%12.76M shares
WELLINGTON MANAGEMENT GROUP LLP	3.97%11.53M shares
UBS Group AG	3.87%11.24M shares
STATE STREET CORP	3.22%9.34M shares
Starboard Value LP	3.05%8.87M shares
AQR CAPITAL MANAGEMENT LLC	2.86%8.32M shares
FIRST TRUST ADVISORS LP	2.65%7.7M shares
GEODE CAPITAL MANAGEMENT, LLC	2.63%7.64M shares
Amundi	2.27%6.58M shares
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	2.08%6.03M shares
Assenagon Asset Management S.A.	1.92%5.58M shares
Jupiter Topco LLC	1.77%5.13M shares
BARCLAYS PLC	1.63%4.73M shares
AMERICAN CENTURY COMPANIES INC	1.59%4.62M shares
WESTFIELD CAPITAL MANAGEMENT CO LP	1.46%4.25M shares
D. E. Shaw & Co., Inc.	1.35%3.91M shares
WILLIAM BLAIR INVESTMENT MANAGEMENT, LLC	1.33%3.86M shares

Percentages use 290.35M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys1$107.3K disclosed value

Sells (SEC code S)52$33.77M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 5, 2026Form 4	Greifeneder BerndEVP, Chief Technology Officer	SellCommon Stock · indirect	162	$42.19	$6.8K	2.0K
Jun 5, 2026Form 4	Greifeneder BerndEVP, Chief Technology Officer	SellCommon Stock · indirect	59	$42.19	$2.5K	1.8K
Jun 5, 2026Form 4	Greifeneder BerndEVP, Chief Technology Officer	SellCommon Stock · indirect	10	$42.19	$421.90	1.8K
Jun 5, 2026Form 4	Greifeneder BerndEVP, Chief Technology Officer	SellCommon Stock · indirect	16	$42.19	$675.04	1.7K
Mar 5, 2026Form 4	Greifeneder BerndEVP, Chief Technology Officer	SellCommon Stock · indirect	59	$39.21	$2.3K	1.5K

Review ownership filings at SEC.gov ↗

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Dynatrace, Inc. (DT)

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