📊 DT Key Takeaways
Is Dynatrace, Inc. (DT) a Good Investment?
Dynatrace demonstrates strong revenue growth (18.8% YoY) and exceptional free cash flow generation ($529.7M, 26.2% margin) with a fortress balance sheet (zero debt, $1.1B cash). However, the sharp 66.4% decline in net income despite revenue growth signals concerning operating leverage dynamics that require clarification before increasing conviction.
Dynatrace shows high-quality software fundamentals with strong 18.7% revenue growth, very high 81.8% gross margin, and robust 21.3% free cash flow margin. Financial health is excellent given $1.09B in cash, no long-term debt, and solid liquidity, while the sharp improvement in net income suggests operating leverage is starting to emerge. The main fundamental question is whether margin expansion and cash generation can continue as growth matures.
Dynatrace, Inc. Key Strengths (DT)
- Exceptional free cash flow generation ($529.7M) and high FCF margin (26.2%) demonstrate robust underlying cash generation
- Industry-leading gross margins (81.6%) indicate strong pricing power and product-market fit in SaaS
- Zero debt, $1.1B cash, and healthy current ratio (1.35x) provide significant financial flexibility and downside protection
- Solid revenue growth momentum (18.8% YoY) in mission-critical application performance monitoring market
- High-margin recurring software model with 81.8% gross margin supports scalability
- Strong balance sheet with $1.09B cash, no long-term debt, and healthy liquidity
- Revenue growth of 18.7% combined with $317.27M free cash flow indicates good growth quality
DT Stock Risks: Dynatrace, Inc. Investment Risks
- Severe net income decline (-66.4% YoY) and diluted EPS contraction (-66.0%) despite revenue growth indicates structural operating expense pressure or one-time charges that must be clarified
- Operating margin of only 12.2% with 81.6% gross margins reveals substantial SG&A or R&D spending that is not scaling efficiently with revenue
- Weak capital efficiency metrics (ROE 6.2%, ROA 3.7%) suggest substantial capital is not generating adequate returns despite strong asset base
- Disconnect between strong operating cash flow and declining net income may indicate high non-cash charges (stock-based compensation, amortization) suggesting shareholder dilution
- Operating margin of 14.0% remains moderate relative to gross margin, so execution on expense discipline still matters
- ROE of 5.3% and ROA of 3.5% are still relatively modest despite earnings improvement
- Recent net income growth above 200% may be difficult to sustain and could reflect margin normalization rather than a steady long-term pace
Key Metrics to Watch
- Net income and operating margin trend - critical to determine if decline is structural or temporary
- Operating expense growth rate relative to revenue growth - assess if company is achieving operating leverage
- Free cash flow sustainability and cash conversion - validate if FCF strength continues despite net income pressure
- Gross margin stability - monitor for pricing pressure or product mix degradation
- Operating margin and net margin expansion
- Revenue growth relative to free cash flow growth
Dynatrace, Inc. (DT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 26.2% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
DT Profit Margin, ROE & Profitability Analysis
DT vs Technology Sector: How Dynatrace, Inc. Compares
How Dynatrace, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Dynatrace, Inc. Stock Overvalued? DT Valuation Analysis 2026
Based on fundamental analysis, Dynatrace, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Dynatrace, Inc. Balance Sheet: DT Debt, Cash & Liquidity
DT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Dynatrace, Inc.'s revenue has grown significantly by 117% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.52 reflects profitable operations.
DT Revenue Growth, EPS Growth & YoY Performance
DT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $436.2M | $40.1M | $0.13 |
| Q2 2026 | $418.1M | $44.0M | $0.15 |
| Q1 2026 | $399.2M | $38.6M | $0.13 |
| Q3 2025 | $365.1M | $42.7M | $0.14 |
| Q2 2025 | $351.7M | $35.8M | $0.12 |
| Q1 2025 | $332.9M | $38.2M | $0.13 |
| Q3 2024 | $297.5M | $15.0M | $0.05 |
| Q2 2024 | $279.3M | $10.5M | $0.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Dynatrace, Inc. Dividends, Buybacks & Capital Allocation
DT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Dynatrace, Inc. (CIK: 0001773383)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 9, 2026 | 4 | xslF345X06/wk-form4_1781054641.xml | View → |
| Jun 9, 2026 | 4 | xslF345X06/wk-form4_1781054626.xml | View → |
| Jun 9, 2026 | 4 | xslF345X06/wk-form4_1781054608.xml | View → |
| Jun 9, 2026 | 4 | xslF345X06/wk-form4_1781054591.xml | View → |
| Jun 9, 2026 | 4 | xslF345X06/wk-form4_1781054576.xml | View → |
❓ Frequently Asked Questions about DT
What is the AI rating for DT?
Dynatrace, Inc. (DT) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DT's key strengths?
Claude: Exceptional free cash flow generation ($529.7M) and high FCF margin (26.2%) demonstrate robust underlying cash generation. Industry-leading gross margins (81.6%) indicate strong pricing power and product-market fit in SaaS. ChatGPT: High-margin recurring software model with 81.8% gross margin supports scalability. Strong balance sheet with $1.09B cash, no long-term debt, and healthy liquidity.
What are the risks of investing in DT?
Claude: Severe net income decline (-66.4% YoY) and diluted EPS contraction (-66.0%) despite revenue growth indicates structural operating expense pressure or one-time charges that must be clarified. Operating margin of only 12.2% with 81.6% gross margins reveals substantial SG&A or R&D spending that is not scaling efficiently with revenue. ChatGPT: Operating margin of 14.0% remains moderate relative to gross margin, so execution on expense discipline still matters. ROE of 5.3% and ROA of 3.5% are still relatively modest despite earnings improvement.
What is DT's revenue and growth?
Dynatrace, Inc. reported revenue of $2.0B.
Does DT pay dividends?
Dynatrace, Inc. does not currently pay dividends.
Where can I find DT SEC filings?
Official SEC filings for Dynatrace, Inc. (CIK: 0001773383) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DT's EPS?
Dynatrace, Inc. has a diluted EPS of $0.54.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is DT's fundamental grade?
Based on our AI fundamental analysis in June 2026, Dynatrace, Inc. has a A grade with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is DT stock overvalued or undervalued?
Valuation metrics for DT: ROE of 6.2% (sector avg: 22%), net margin of 8.1% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is DT's AI grade for 2026?
Our dual AI analysis gives Dynatrace, Inc. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DT's free cash flow?
Dynatrace, Inc.'s operating cash flow is $561.9M, with capital expenditures of $32.2M. FCF margin is 26.2%.
How does DT compare to other Technology stocks?
Vs Technology sector averages: Net margin 8.1% (avg: 18%), ROE 6.2% (avg: 22%), current ratio 1.35 (avg: 2.5).