Scotiabank Has Bearish Outlook for Dynatrace FY2026 Earnings

Dynatrace, Inc. (NYSE:DT) – Scotiabank dropped their FY2026 earnings per share estimates for shares of Dynatrace in a note issued to investors on Wednesday, February 11th. Scotiabank analyst P. Colville now forecasts that the company will earn $0.87 per share for the year, down from their previous estimate of $0.89. Scotiabank has a “Sector Outperform” rating and a $47.00 price target on the stock. The consensus estimate for Dynatrace’s current full-year earnings is $0.68 per share. Scotiabank also issued estimates for Dynatrace’s FY2027 earnings at $0.97 EPS.

Dynatrace (NYSE:DT) last posted its quarterly earnings data on Monday, February 9th. The company reported $0.44 earnings per share for the quarter, beating analysts’ consensus estimates of $0.41 by $0.03. The business had revenue of $515.47 million for the quarter, compared to analysts’ expectations of $506.31 million. Dynatrace had a net margin of 9.55% and a return on equity of 9.75%. The business’s revenue was up 18.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.37 earnings per share. Dynatrace has set its FY 2026 guidance at 1.670-1.690 EPS and its Q4 2026 guidance at 0.380-0.390 EPS.

DT has been the topic of several other reports. Truist Financial reduced their price target on Dynatrace from $60.00 to $55.00 and set a “buy” rating on the stock in a report on Wednesday, November 19th. UBS Group cut their price objective on Dynatrace from $50.00 to $40.00 and set a “neutral” rating on the stock in a research report on Tuesday. BTIG Research decreased their target price on Dynatrace from $67.00 to $53.00 and set a “buy” rating for the company in a research report on Monday, February 9th. Guggenheim reissued a “buy” rating and set a $68.00 target price on shares of Dynatrace in a research note on Tuesday, February 10th. Finally, BMO Capital Markets reduced their price target on shares of Dynatrace from $56.00 to $45.00 and set an “outperform” rating on the stock in a research note on Monday, February 9th. Twenty analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, Dynatrace currently has an average rating of “Moderate Buy” and a consensus target price of $52.52.

Dynatrace Price Performance

Shares of NYSE DT opened at $37.22 on Friday. Dynatrace has a 1 year low of $32.83 and a 1 year high of $62.66. The firm has a 50-day simple moving average of $41.17 and a two-hundred day simple moving average of $45.75. The company has a market cap of $11.10 billion, a P/E ratio of 61.01, a PEG ratio of 2.96 and a beta of 0.84.

Hedge Funds Weigh In On Dynatrace

Hedge funds have recently made changes to their positions in the business. Congress Asset Management Co. raised its holdings in Dynatrace by 6.8% in the 3rd quarter. Congress Asset Management Co. now owns 3,331,422 shares of the company’s stock worth $161,407,000 after acquiring an additional 212,607 shares during the last quarter. Allspring Global Investments Holdings LLC grew its stake in shares of Dynatrace by 5.4% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 1,077,181 shares of the company’s stock valued at $52,039,000 after purchasing an additional 55,040 shares during the period. Vontobel Holding Ltd. grew its position in Dynatrace by 790.5% during the third quarter. Vontobel Holding Ltd. now owns 48,702 shares of the company’s stock valued at $2,360,000 after buying an additional 43,233 shares during the period. Penserra Capital Management LLC increased its stake in shares of Dynatrace by 22.0% in the 3rd quarter. Penserra Capital Management LLC now owns 222,505 shares of the company’s stock worth $10,780,000 after purchasing an additional 40,136 shares in the last quarter. Finally, Stephens Investment Management Group LLC raised its holdings in Dynatrace by 63.1% in the 3rd quarter. Stephens Investment Management Group LLC now owns 1,040,475 shares of the company’s stock worth $50,411,000 after purchasing an additional 402,585 shares during the period. Hedge funds and other institutional investors own 94.28% of the company’s stock.

Insider Buying and Selling at Dynatrace

In other news, CAO Daniel S. Yates sold 2,000 shares of the stock in a transaction dated Monday, November 17th. The shares were sold at an average price of $46.69, for a total transaction of $93,380.00. Following the transaction, the chief accounting officer directly owned 23,380 shares in the company, valued at $1,091,612.20. This represents a 7.88% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Dan Zugelder sold 7,505 shares of the company’s stock in a transaction that occurred on Wednesday, December 10th. The stock was sold at an average price of $45.27, for a total transaction of $339,751.35. Following the transaction, the executive vice president directly owned 8,925 shares of the company’s stock, valued at $404,034.75. This trade represents a 45.68% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 9,843 shares of company stock valued at $448,124 over the last quarter. Insiders own 0.57% of the company’s stock.

Dynatrace declared that its board has authorized a share buyback plan on Monday, February 9th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the company to purchase up to 9.8% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s leadership believes its shares are undervalued.

Key Stories Impacting Dynatrace

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Q3 beat-and-raise: Dynatrace reported revenue and EPS above estimates, raised full‑year revenue guidance, posted ARR growth (~20% to $1.97B), strong net retention (111%) and unveiled Dynatrace Intelligence; management also authorized a $1B buyback — all positive for cash returns, EPS accretion and confidence in recurring revenue. Dynatrace’s Earnings Win Makes One Thing Clear: This Software Is Essential
• Positive Sentiment: DA Davidson reaffirmed a buy after the solid Q3 report, reinforcing buy-side support following the beat-and-raise. DA Davidson reaffirms buy on Dynatrace (DT) after solid Q3
• Positive Sentiment: Cantor flags strengthening security-sales momentum after recent M&A (DevCycle etc.), indicating cross-sell/upsell tailwinds that can expand monetization beyond core observability. Cantor Notes Strengthening Security Sales Post-M&A Activity For Dynatrace, Inc. (DT)
• Positive Sentiment: Guggenheim and KeyCorp continue to show bullish conviction (reiterated buy/positive outlooks), supporting demand from institutional investors despite mixed market sentiment. Guggenheim Reiterates “Buy” Rating for Dynatrace (NYSE:DT) KeyCorp Forecasts Strong Price Appreciation for Dynatrace (NYSE:DT) Stock
• Positive Sentiment: Industry commentary and analysis (Seeking Alpha, MarketBeat) highlight product expansion (agentic AI operations, feature management) as potential catalysts for accelerating growth and deeper enterprise integration. Dynatrace: Growth Should Start To Accelerate
• Neutral Sentiment: Scotiabank trimmed its FY2026 and FY2027 EPS estimates slightly (FY26: $0.87 from $0.89; FY27: $0.97 from $0.99) but retained a Sector Outperform rating and a $47 target — a modest statistical tweak rather than a broad loss of conviction. Scotiabank Has Lowered Expectations for Dynatrace (NYSE:DT) Stock Price
• Neutral Sentiment: Valuation/comparison pieces (e.g., Zacks comparing Genpact vs. Dynatrace) provide context for investors debating relative value in the IT services/observability space — useful but not company-specific catalysts. G vs. DT: Which Stock Is the Better Value Option?
• Negative Sentiment: Several banks lowered price targets (Morgan Stanley to $43, Wells Fargo to $50, BTIG to $53), reflecting sectorwide multiple compression and giving some downside pressure to the shares despite operational strength. Morgan Stanley Lowers Dynatrace (NYSE:DT) Price Target to $43.00 Wells Fargo & Company Lowers Dynatrace (NYSE:DT) Price Target to $50.00 BTIG Research Cuts Dynatrace (NYSE:DT) Price Target to $53.00

Dynatrace Company Profile

Dynatrace is a global software intelligence company specializing in application performance management (APM), cloud infrastructure monitoring, and digital experience management. Its flagship offering, the Dynatrace Software Intelligence Platform, leverages artificial intelligence to provide real-time observability across distributed environments, including on-premises data centers, private clouds, public clouds and hybrid deployments. Organizations rely on Dynatrace to detect anomalies, troubleshoot performance issues and optimize end-user experiences through automated root-cause analysis powered by the company’s engine, Davis.

The Dynatrace platform comprises modules for full-stack application monitoring, digital experience monitoring, infrastructure monitoring and business analytics.