Company Performance - Dynatrace (DT) stock increased by 1.68% to $46.04, outperforming the S&P 500's decline of 1.07% in the latest session [1] - Over the past month, Dynatrace shares experienced a loss of 3.21%, underperforming the Computer and Technology sector, which gained 1.6%, and the S&P 500, which gained 0.94% [1] Upcoming Earnings - The upcoming earnings release is highly anticipated, with projected EPS of $0.41, reflecting a 10.81% increase year-over-year [2] - Revenue is estimated at $505.77 million, indicating a 15.96% increase from the same quarter last year [2] Full Year Projections - For the full year, earnings are projected at $1.63 per share and revenue at $1.99 billion, showing increases of 17.27% and 17.21% respectively from the previous year [3] - Recent analyst estimate revisions suggest optimism regarding Dynatrace's business and profitability [3] Valuation Metrics - Dynatrace has a Forward P/E ratio of 27.74, which is a premium compared to the industry average of 16.72 [6] - The company has a PEG ratio of 1.96, slightly above the industry average PEG ratio of 1.93 [6] Industry Context - The Computers - IT Services industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 91, placing it in the top 37% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - Dynatrace, Inc. has raised its earnings and revenue guidance for the third quarter and the full-year 2026, indicating positive growth expectations for the company. Financial Results and Guidance - For the third quarter, Dynatrace projects adjusted earnings between $0.40 and $0.42 per share, with total revenues expected to be between $503 million and $508 million [1] - Analysts expect the company to report earnings of $0.40 per share on revenues of $501.41 million for the quarter [2] - Looking ahead to fiscal 2026, Dynatrace now projects adjusted earnings in the range of $1.62 to $1.64 per share, with total revenues between $2.010 billion and $2.025 billion, an increase from previous expectations of $1.58 to $1.61 per share and revenues between $1.970 billion and $1.985 billion [2] Market Expectations - The market anticipates earnings of $1.61 per share on revenues of $1.98 billion for the fiscal year [3]

Core Viewpoint - The market anticipates Dynatrace (DT) will report a year-over-year increase in earnings driven by higher revenues when it releases its results for the quarter ended June 2025 [1] Earnings Expectations - Dynatrace is expected to post quarterly earnings of $0.38 per share, reflecting a year-over-year increase of +15.2% [3] - Revenues are projected to reach $466.07 million, which is an increase of 16.8% compared to the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [4] - The Most Accurate Estimate for Dynatrace is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.33%, suggesting a bullish outlook on the company's earnings prospects [12] Earnings Surprise History - In the last reported quarter, Dynatrace was expected to earn $0.30 per share but actually earned $0.33, resulting in a surprise of +10.00% [13] - Over the past four quarters, Dynatrace has consistently beaten consensus EPS estimates [14] Industry Context - In the Zacks Computers - IT Services industry, Leidos (LDOS) is expected to report earnings of $2.63 per share, unchanged from the previous year, with revenues projected at $4.23 billion, up 2.4% [18] - Leidos has a revised EPS estimate that is 0.8% lower over the last 30 days, but a higher Most Accurate Estimate gives it an Earnings ESP of +1.46%, indicating a likely earnings beat [19]

Core Insights - Dynatrace (DT) is positioned to potentially continue its earnings-beat streak in upcoming reports, having surpassed earnings estimates by an average of 11.06% in the last two quarters [1][5]. Earnings Performance - In the most recent quarter, Dynatrace reported earnings of $0.30 per share against an expectation of $0.33 per share, resulting in a surprise of 10.00% [2]. - For the previous quarter, the company exceeded the consensus estimate of $0.33 per share by reporting $0.37 per share, achieving a surprise of 12.12% [2]. Earnings Estimates and Predictions - Estimates for Dynatrace have been trending higher, influenced by its history of earnings surprises, and the stock currently has a positive Zacks Earnings ESP of +1.33%, indicating bullish sentiment among analysts [5][8]. - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) suggests a strong possibility of another earnings beat [8]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7].

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]