Financial Performance - Dynatrace's Q4 2025 subscription revenue retention rate was in the mid-90s percentage range[37] - The company's FY25 annual recurring revenue (ARR) reached $1.73 billion[37] - Dynatrace achieved 14% year-over-year ARR growth in Q4 2025[37] - The company's FY25 net pre-tax free cash flow (FCF) margin was 32%[37] - Dynatrace anticipates FY26 ARR between $1.975 billion and $1.990 billion, representing a 14%-15% increase[59] - The company projects FY26 total revenue between $1.950 billion and $1.965 billion, a 15%-16% increase[59] - Dynatrace forecasts FY26 non-GAAP operating margin of 29%[59] - The company expects FY26 free cash flow between $505 million and $515 million, resulting in a 26% margin[59] Market and Strategy - The total addressable market (TAM) for observability is $14 billion, and for security is $85 billion[27] - Dynatrace has a go-to-market strategy targeting 15,000 customers across strategic enterprise and commercial segments[29]

Exhibit 99.1 Dynatrace Reports Fourth Quarter and Full Year Fiscal 2025 Financial Results Exceeds high end of guidance across all FY25 metrics Delivers FY25 Subscription Revenue growth of 20% year-over-year on a constant currency basis Achieves FY25 GAAP Operating Margin of 11% and Non-GAAP Operating Margin of 29% WALTHAM, Mass., May 14, 2025 - Dynatrace (NYSE: DT), the leading AI-powered observability platform, today announced financial results for the fourth quarter and full year ended March 31, 2025. All ...

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Dynatrace, Inc. DT will release earnings results for the fourth quarter, before the opening bell on Wednesday, May 14. Analysts expect the Waltham, Massachusetts-based company to report quarterly earnings at 30 cents per share, compared to 30 cents per share in the year-ago period. Dynatrace projects to report quarterly revenue at $435.14 million, compared to $380.85 million a year earlier, according to data from Benzinga Pro. On April 22, Dynatrace announced that Steve McMahon will join Dynatrace as its ne ...

Core Viewpoint - Analysts forecast Dynatrace (DT) will report quarterly earnings of $0.30 per share, indicating no change from the previous year, with revenues expected to reach $434.56 million, reflecting a 14.1% increase year-over-year [1]. Earnings Estimates - Over the last 30 days, there has been a downward revision of 1.1% in the consensus EPS estimate for the quarter, indicating a collective reconsideration by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong relationship between earnings estimate revisions and short-term stock price performance [3]. Revenue Projections - Analysts estimate 'Revenues- Services' at $21.78 million, representing a year-over-year change of +5% [5]. - 'Revenues- Subscriptions' are forecasted to reach $412.89 million, indicating a +14.7% change from the previous year [5]. - The 'Annual Recurring Revenue (ARR)- Total' is projected to be $1.71 billion, compared to $1.50 billion from the previous year [5]. Profit Estimates - The 'Gross profit- Services' is expected to be $3.05 million, down from $3.28 million reported in the same quarter last year [6]. - Analysts project 'Gross profit- Subscriptions' to be $361.62 million, an increase from $309.93 million reported in the same quarter of the previous year [6]. Stock Performance - Shares of Dynatrace have increased by +11.9% over the past month, compared to a +13.7% increase in the Zacks S&P 500 composite [7]. - With a Zacks Rank 3 (Hold), Dynatrace is expected to perform in line with the overall market in the near future [7].

In the latest market close, Dynatrace (DT) reached $47.35, with a +1.92% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.58% for the day. Elsewhere, the Dow saw an upswing of 0.75%, while the tech-heavy Nasdaq appreciated by 0.55%.Coming into today, shares of the software intellegence company had lost 1.46% in the past month. In that same time, the Computer and Technology sector gained 0.6%, while the S&P 500 lost 0.84%.The upcoming earnings release of Dyn ...

Group 1 - Dynatrace's stock closed at $42.90, with a daily increase of +1.73%, underperforming the S&P 500's gain of 2.51% [1] - Over the past month, Dynatrace shares have decreased by 16.78%, while the Computer and Technology sector and the S&P 500 have lost 12.18% and 8.86%, respectively [1] Group 2 - Dynatrace is expected to report an EPS of $0.30, unchanged from the same quarter last year, with a revenue forecast of $434.56 million, reflecting a 14.1% year-over-year increase [2] - Recent analyst estimate revisions indicate optimism regarding Dynatrace's business and profitability [3] Group 3 - The Zacks Rank system, which assesses estimate changes, currently ranks Dynatrace at 3 (Hold), with a recent 1.48% decrease in the consensus EPS estimate [5] - Dynatrace has a Forward P/E ratio of 27.55, which is higher than the industry average of 15.51 [5] Group 4 - The company has a PEG ratio of 2.16, compared to the industry average of 1.72, indicating a premium valuation relative to expected earnings growth [6] - The Computers - IT Services industry, which includes Dynatrace, holds a Zacks Industry Rank of 89, placing it in the top 36% of over 250 industries [6][7]

Core Insights - Dynatrace is positioned as an attractive service provider in the emerging observability market, enabling customers to optimize cloud spending and enhance negotiating power in multi-cloud environments [1] Company Summary - Dynatrace allows customers to reduce their cloud expenditure and mitigate vendor lock-in, which is crucial for maintaining flexibility in multi-cloud setups [1] - The stock is currently trading at a reasonable premium, indicating a balanced valuation in relation to its growth potential [1] Industry Context - The observability market is emerging, suggesting significant growth opportunities for service providers like Dynatrace [1] - The focus on intrinsic value in equity research highlights a trend towards identifying undervalued and growing companies, particularly those in early development stages [1]

Software stocks are facing heightened volatility this week, with Adobe Inc (NASDAQ:ADBE), Datadog Inc (NASDAQ:DDOG), and Dynatrace Inc (NYSE:DT) all struggling due to disappointing earnings guidance, market-wide headwinds, and sector-specific pressures.Adobe stock was last seen down 12.3% at $384.52 after issuing lackluster fiscal second-quarter guidance, projecting earnings of $4.98 on revenue of $5.8 billion, but the forecast failed to inspire confidence, dragging the stock 13% lower in 2025 and 32.6% low ...

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Dynatrace (DT), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank for making informed investment decisions [1][4]. Brokerage Recommendations for Dynatrace - Dynatrace has an average brokerage recommendation (ABR) of 1.64, indicating a consensus between Strong Buy and Buy, based on recommendations from 33 brokerage firms [2]. - Out of the 33 recommendations, 22 are Strong Buy and 1 is Buy, which accounts for 66.7% and 3% of all recommendations respectively [2]. Limitations of Brokerage Recommendations - The article highlights that brokerage recommendations may not be reliable indicators of stock performance due to potential biases stemming from the vested interests of brokerage firms [5][9]. - Research indicates that for every "Strong Sell" recommendation, there are five "Strong Buy" recommendations, suggesting a tendency for analysts to be overly optimistic [5]. Zacks Rank as an Alternative - The Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, which are more effective indicators of near-term stock price movements compared to brokerage recommendations [7][10]. - The Zacks Rank is timely and reflects changes in earnings estimates quickly, unlike the ABR which may not be up-to-date [11]. Current Earnings Estimates for Dynatrace - The Zacks Consensus Estimate for Dynatrace remains unchanged at $1.37 for the current year, indicating steady analyst views on the company's earnings prospects [12]. - Due to the unchanged consensus estimate and other factors, Dynatrace holds a Zacks Rank of 3 (Hold), suggesting caution despite the Buy-equivalent ABR [13].