Investors with an interest in Computers - IT Services stocks have likely encountered both Leidos (LDOS) and Dynatrace (DT) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. LDOS currently has a forward P/E ratio of 14.22, while DT has a forward P/E of 35.29. We also note that LDOS has a PEG ratio of 1.85. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth ...

Dynatrace (DT) FY Conference June 04, 2025 09:00 AM ET Speaker0 Good to kick off? All right. Well, thanks, everyone, for joining here in person or listening over the webcast. Before we begin, my name is Jake Roberge. I am the research analyst here at William Blair that covers Dynatrace. And for a full list of our research disclosures, please visit our website at williamblair.com. Well, with that, really excited to have Rick McConnell, the chief executive officer of Dynatrace, Jim Benson, the chief financial ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...

ASHBURN, Va., May 30, 2025 /PRNewswire/ - DXC Technology, a leading Fortune 500 global technology services provider, today announced it has been named Global Partner of the Year at the Dynatrace Amplify Partner Sales Kickoff. The award recognizes DXC's 15-year strategic collaboration with Dynatrace—marked by deep technical expertise, strategic investment, and transformative results for enterprise customers worldwide.  Dynatrace Names DXC Global Partner of the Year (CNW Group/DXC Technology Company) The ...

Core Viewpoint - Dynatrace (DT) is positioned as a strong investment opportunity due to its improving earnings outlook and positive analyst sentiment [1][2] Earnings Estimate Revisions - Analysts have shown growing optimism regarding Dynatrace's earnings prospects, leading to upward revisions in earnings estimates, which typically correlate with stock price movements [2] - The current-quarter earnings estimate is $0.37 per share, reflecting a year-over-year increase of +12.12% and a 21.59% rise in consensus estimates over the last 30 days, with nine estimates moving higher [6] - For the full year, Dynatrace is expected to earn $1.58 per share, indicating a +13.67% year-over-year change, with nine estimates raised against two negative revisions [7] Zacks Rank and Performance - Dynatrace currently holds a Zacks Rank 2 (Buy), indicating strong agreement among analysts on the positive earnings revisions [8] - Historically, Zacks 1 (Strong Buy) and 2 (Buy) stocks have significantly outperformed the S&P 500, with Zacks 1 stocks averaging a +25% annual return since 2008 [3][8] Recent Stock Performance - Dynatrace shares have increased by 14.2% over the past four weeks, reflecting investor confidence in the company's earnings growth potential [9]

My previous investment thought on Dynatrace (NYSE: DT ) was a buy rating because I saw attractive upside to the share price, which I expected to materialize as DT continues to show solid revenue and annualI focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the medium to long-term. Ultimately, I a ...

Analyst's Disclosure: I/we have a beneficial long position in the shares of DT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any inv ...

Revenue Growth and Financial Performance - Annual revenue growth was 25% in 2023, 23% in 2024, and 19% in 2025 compared to the prior year[78] - The company expects its billings and revenue mix to vary over time, which could impact gross margin and cash flows[106] - Revenue from international customers represented 42% of total revenue for the fiscal year ended March 31, 2025[159] - The company recognized $351.9 million in revenue from deferred revenue at the beginning of the period for the three months ended March 31, 2025[164] - An intra-entity asset transfer of global economic rights to Switzerland resulted in a discrete tax benefit and related deferred tax asset of $320.9 million for the year ended March 31, 2025[155] Customer Retention and Acquisition - The company faces risks related to customer retention and the ability to attract new customers, which could adversely affect revenue growth[81] - The company needs to attract new customers and increase usage of its solutions to grow its business[95] - Customer retention rate has historically been strong, but some customers have chosen not to renew agreements, making long-term retention difficult to predict[96] - More than 30% of customer accounts transitioned to new sales representatives following a go-to-market strategy update in fiscal year 2025[96] Market and Competitive Landscape - The competitive landscape is evolving, with significant competition from larger companies and new entrants, which may lead to pricing pressure and reduced profit margins[99][100] - Market adoption of the company's solutions may not grow as expected, potentially harming business prospects[84] - The company relies on partnerships with strategic partners and hyperscalers like AWS, GCP, and Azure to drive sales growth, and any failure in these relationships could adversely affect business[107][110] Economic and Operational Risks - Economic uncertainties and reduced IT budgets may lead to longer sales cycles and lower revenue[86] - Sales cycles can be long and unpredictable, particularly during economic uncertainty, affecting the timing and size of transactions[113][114] - The company has experienced seasonal concentration of transactions, with the third and fourth fiscal quarters typically being the largest[114] Technology and Development - Significant investments have been made in application security and the development of core technologies like Grail, AutomationEngine, and AppEngine[89] - The complexity of developing new technology poses risks, as failure to meet market demands could harm business performance[89] - The company aims to evolve its AI capabilities to create an agentic AI platform that can operate autonomously[89] Security and Compliance - Security breaches and cyber-attacks pose significant risks, potentially leading to unauthorized access to sensitive data and harming the company's reputation[122] - The company has administrative, technical, and physical security measures in place, but evolving cyber threats may still lead to security breaches[126] - The company maintains a sufficient amount of insurance for data security risks, but coverage may not always be adequate for all potential losses[129] - Compliance with evolving privacy laws and regulations is complex and may result in increased costs and operational changes[147] - The company is subject to stringent data protection laws, including the GDPR, which can impose fines of up to €20 million or 4% of worldwide annual revenue for serious breaches[150] Human Resources and Management - The total employee headcount increased approximately 24% from March 31, 2023, to March 31, 2025, indicating significant growth in personnel[119] - The company relies on highly skilled personnel, and competition for talent, especially in Europe, is intense, which may lead to increased personnel costs[117] - Recent changes in senior management include hiring a new Chief Customer Officer, Chief Revenue Officer, and Chief Marketing Officer, which may impact business operations[115] Financial Position and Capital Management - As of March 31, 2025, the company had $399.2 million available under its $400 million Credit Facility, with $0.8 million of letters of credit outstanding[120] - The company announced a share repurchase program in May 2024, authorizing the purchase of up to $500 million of common stock, with $327.4 million remaining available as of March 31, 2025[190] - The company has never declared or paid dividends on its common stock and does not anticipate doing so in the foreseeable future[191] - The company may issue additional capital stock in the future, which could dilute existing stockholders' ownership interests[188] Legal and Intellectual Property Risks - The company faces significant risks from third-party IP infringement claims, which could result in substantial costs and harm to business operations[135] - Allegations of IP infringement may distract management and create uncertainty among customers, potentially affecting business performance[136] - Adverse outcomes from IP disputes could lead to substantial damages, redesign costs, or unfavorable licensing agreements, harming business results[137] - Protecting proprietary technology and IP rights is crucial for business success, but the company faces challenges in enforcement and unauthorized use[139] International Operations and Taxation - Approximately 68% of the company's employees were located outside of the United States as of March 31, 2025[159] - The company has suspended all business in Russia and Belarus, which may impact its ability to sell or export its platform in those regions[163] - The effective tax rate is likely to fluctuate due to the allocation of revenues and expenses to different jurisdictions[154] - Changes in tax laws and regulations could adversely affect the company and its stockholders[157] Market Risks - The company is exposed to market risks, primarily from fluctuations in foreign currency exchange rates and interest rates[358] - The company does not believe a 10% change in the value of the U.S. dollar against other currencies would materially affect its results of operations or cash flows[359] - The strengthening of the U.S. dollar generally reduces the reported amount of foreign-denominated cash and total revenues when translated into U.S. dollars[361] - The company has not engaged in hedging strategies for foreign currency transactions to date but may reassess this approach as international operations grow[359] Miscellaneous Risks - Catastrophic events, such as natural disasters or pandemics, could materially disrupt the company's business and impact customer spending[199] - Climate change may pose long-term risks, including increased operating costs due to compliance with new regulations[202] - The rapid evolution of AI technology may require significant resources to ensure compliance with applicable laws and regulations[150]

Dynatrace, Inc. (NYSE: DT ) recently reported its Q4 results , so I thought I’d go through the numbers in more detail and talk about the positives and the negatives over the next while.MSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time.Analyst’s Disclosure: I/we have no ...

For the quarter ended March 2025, Dynatrace (DT) reported revenue of $445.17 million, up 16.9% over the same period last year. EPS came in at $0.33, compared to $0.30 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $434.56 million, representing a surprise of +2.44%. The company delivered an EPS surprise of +10.00%, with the consensus EPS estimate being $0.30.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street e ...