
Dynatrace Inc (DT) Stock Forecast & Price Target
Dynatrace Inc (DT) Analyst Ratings
Bulls say
Dynatrace has demonstrated robust growth in its subscription model, with Digital Performance Solutions (DPS) customers significantly increasing to 60% of the total customer base by the third quarter of FY26, contributing 75% of annual recurring revenue (ARR). The company has achieved an impressive year-over-year ARR growth of 20%, demonstrating consistent double-digit growth across multiple quarters, with the average ARR per customer increasing from approximately $200K to $500K as a result of successful cross-selling and multi-product adoption. Additionally, Dynatrace has maintained strong non-GAAP gross margins above 80% and a non-GAAP operating margin of 30%, further underscoring its commitment to profitability while selectively reinvesting in growth initiatives.
Bears say
Dynatrace's net retention rate has seen a significant decline from over 120% to a range of 110-112%, indicating potential difficulties in maintaining existing customer business and revenue growth. The company has also experienced a decrease in new account acquisition, with figures dropping from 706 new accounts in FY22 to 669 in FY25, highlighting challenges in attracting new clients amid increasing competition. Additionally, the anticipated moderation in year-over-year revenue growth, projected to drop to the mid-to-high teens for FY26, combined with an elevated EV/revenue multiple that is not aligned with peers, raises concerns about Dynatrace's future financial performance.
This aggregate rating is based on analysts' research of Dynatrace Inc and is not a guaranteed prediction by Public.com or investment advice.
Dynatrace Inc (DT) Analyst Forecast & Price Prediction
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