| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 13 | 128.8x | 17.3x | Bottom tier | |
Growth | 70 | 17.9% | 7.1% | Top tier | |
Quality | 79 | 4.0% | 4.5% | Top tier | |
Safety | 87 | — | 2.6x | Top tier | |
Capital Return | 48 | 0.00% | 0.06% | Around median | |
Momentum | 95 | 23.9% | -1.6% | Top tier | |
Sentiment | 67 | 22 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
85% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Dynatrace provides a unified platform for monitoring applications, infrastructure, logs, and AI workloads, relying on Grail, Smartscape, and Dynatrace Intelligence to connect metrics, logs, and traces and analyze the root causes of failures. Revenue is generated primarily from enterprise subscriptions and consumption under the Dynatrace Platform Subscription, as the use of AI-powered features, MCP integrations, SRE agents, and Assist consumes customer commitments, potentially paving the way for contract expansions upon renewal.
In Q1 fiscal 2027, revenue reached $555 million, including $530 million in subscription revenue, representing approximately 95.5% of the total, and both grew 15% in constant currency and exceeded the high end of the company's guidance by approximately 100 basis points. Non-GAAP net income was $140 million, or $0.48 per diluted share, and the non-GAAP operating margin reached 29%, exceeding the high end of guidance by 100 basis points, while adjusted free cash flow was $309 million.
Dynatrace ended Q1 fiscal 2027 with annual recurring revenue of $2.14 billion, up 17%, and net new annual recurring revenue of $85 million, up 66%. Excluding Bindplane's $13 million contribution, organic net new annual recurring revenue was $73 million, up 41%. By comparison, fiscal 2026 recorded revenue of $2 billion, gross profit of $1.6 billion, net income of $162.7 million, and earnings per share of $0.54.
The analyst consensus is “Buy,” with an average target of $54.63, a high of $65, and a low of $42; the average is approximately at the top of the 52-week range of $54.58, compared with a low of $31.635. No comparable price-to-earnings ratio is available, so the valuation depends more on continued annual recurring revenue growth and converting log and AI consumption into expansions, balanced against the wide range of targets, currency pressures, and the $915 million cost of the planned Arize acquisition.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Q1 fiscal 2027 revenue reached approximately $555 million, including $530 million from subscriptions, and both grew 15% in constant currency. Annual recurring revenue reached $2.14 billion, up 17%, while net new annual recurring revenue increased 66% to $85 million. Growth from new customers of more than 160%, the addition of 122 customers, and a new eight-figure annual contract helped drive performance.
On August 5, 2026, management identified three channels: increased observability data consumption for AI workloads, selling monitoring for the accuracy and safety of model outputs, and monetizing the use of Dynatrace Intelligence, SRE agents, and Assist. The number of customers monitoring AI workloads and language models exceeded 1,000, while the number of users of agentic capabilities exceeded 800. Consumption by these cohorts is growing at 1.5 times the rate of customers outside the AI cohorts.
Log management was Dynatrace's fastest-growing category in Q1 fiscal 2027, with growth exceeding 100% and annualized consumption reaching approximately $200 million. The category had surpassed $100 million only two quarters earlier, demonstrating the rapid increase in usage. Bindplane helps ingest data using OpenTelemetry, and its contribution was included in the cited annualized consumption figure, with its business performing ahead of management's plan.
Automated analysis for informational purposes only — not investment advice.
On August 20, 2026, Dynatrace announced a plan to acquire Arize for $915 million. The consideration will be paid through a combination of cash and equity awards, and the transaction aims to expand the observability and optimization of AI-powered applications. Through it, Dynatrace seeks to strengthen its position as a broader AI operations platform, but the provided data does not include any realized financial results from Arize.
Dynatrace maintained its fiscal 2027 annual recurring revenue growth guidance at 15.5%–16.5% in constant currency. It raised its total revenue and subscription revenue growth forecasts to 14.5%–15% and raised its non-GAAP earnings per share guidance to $1.97–$1.99. It also raised the high end of its operating margin guidance to 29.75%, while maintaining its adjusted free cash flow margin at 26.5%.
The expected acceleration depends on continued consumption and its conversion into expansions, while approximately 70% of Dynatrace Platform Subscription contract renewals or resets occur in the second half of fiscal 2027. On August 5, 2026, the company expected currency pressure of $14 million on annual recurring revenue and $4 million on revenue due to dollar fluctuations, with approximately 40% of the business denominated in foreign currencies. Added to this are the execution risks of the $915 million planned Arize acquisition and volatility in the timing of large enterprise deals.