What’s Driving the Rise of Dynatrace Stock on Wednesday?
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
Updated: Nov 05 20250mins
Earnings and Revenue Performance: Dynatrace Inc. reported adjusted earnings of 44 cents per share and total revenue of $493.85 million for the second quarter, exceeding analysts' expectations and raising its fiscal 2026 outlook.
Strategic Partnerships and Growth: The company formed new partnerships, including collaborations with ServiceNow and Atlassian, and saw a 53% year-over-year increase in annual contract value from seven-figure deals.
Share Buyback and Financial Position: Dynatrace repurchased 994,000 shares for $50 million under its buyback program, totaling 5.3 million shares repurchased since May 2024, and ended the quarter with $1.23 billion in cash.
Future Outlook: The company raised its fiscal 2026 adjusted earnings per share forecast to $1.62 to $1.64 and projected revenue between $1.985 billion and $1.995 billion, with expectations for the third quarter aligning with analyst estimates.
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Analyst Views on DT
Wall Street analysts forecast DT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DT is 61.25 USD with a low forecast of 50.00 USD and a high forecast of 69.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
15 Buy
3 Hold
0 Sell
Strong Buy
Current: 44.310
Low
50.00
Averages
61.25
High
69.00
Current: 44.310
Low
50.00
Averages
61.25
High
69.00
JPMorgan
Neutral
maintain
$118 -> $126
2025-12-02
New
Reason
JPMorgan
Price Target
$118 -> $126
2025-12-02
New
maintain
Neutral
Reason
JPMorgan raised the firm's price target on DT Midstream to $126 from $118 and keeps a Neutral rating on the shares. The firm updated the company's model post the Q3 report.
Truist
Buy
downgrade
$60 -> $55
2025-11-19
Reason
Truist
Price Target
$60 -> $55
2025-11-19
downgrade
Buy
Reason
Truist lowered the firm's price target on Dynatrace to $55 from $60 and keeps a Buy rating on the shares. AI and machine labor are pushing software vendors in data management, DevOps, and observability to adopt consumption-based models, the analyst tells investors in a research note. Truist argues that this model is best suited for delivering AI capabilities and that building it correctly will significantly shape future business performance.
UBS
Neutral
downgrade
$55 -> $50
2025-11-06
Reason
UBS
Price Target
$55 -> $50
2025-11-06
downgrade
Neutral
Reason
UBS lowered the firm's price target on Dynatrace to $50 from $55 and keeps a Neutral rating on the shares. Dynatrace's growth guidance for the second half of the year is weighing on the stock, the analyst tells investors in a research note.
Cantor Fitzgerald
Neutral
downgrade
$57 -> $51
2025-11-06
Reason
Cantor Fitzgerald
Price Target
$57 -> $51
2025-11-06
downgrade
Neutral
Reason
Cantor Fitzgerald lowered the firm's price target on Dynatrace to $51 from $57 and keeps a Neutral rating on the shares. Dynatrace reported a strong Q3, with upside to annual recurring revenue and Subscription revenue consensus expectations, the analyst tells investors in a research note. Cantor continues to see Dynatrace benefiting from cloud and AI secular drivers, particularly with the enterprise and possibly increasingly with AI natives.
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About DT
Dynatrace, Inc. is an artificial intelligence (AI)-powered observability platform. It is advancing observability for digital businesses and transforming the complexity of modern digital ecosystems into business assets. It enables organizations to analyze and automate. Its platform combines broad and deep observability, continuous runtime application security, and advanced AI to support information technology (IT) operations, development, security, and business teams, enabling organizations to optimize cloud and IT operations, accelerate secure software delivery, and improve digital performance. Its platform's solutions include infrastructure observability, application observability, AI observability, digital experience, business analytics, software delivery, threat observability, application security, and log analytics. Infrastructure observability provides visibility into a customer’s IT infrastructure layer across public and private clouds and hybrid, multicloud environments.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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