📊 DT Key Takeaways
Is Dynatrace, Inc. (DT) a Good Investment?
Dynatrace demonstrates exceptional financial health with 81.8% gross margins, 21.3% free cash flow margins, and a fortress balance sheet featuring zero long-term debt and $1.1B in cash. The company is generating substantial free cash flow ($317.3M) while achieving strong 18.7% revenue growth, with net income surging 212.8% YoY indicating significant operational leverage and improving profitability.
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.
Why Buy Dynatrace, Inc. Stock? DT Key Strengths
- Exceptional gross margin of 81.8% demonstrates strong pricing power and efficient service delivery in software analytics
- Robust free cash flow generation of $317.3M (21.3% FCF margin) providing flexibility for growth investments and returns
- Zero long-term debt with $1.1B cash position creates fortress balance sheet with significant financial flexibility
- Net income growth of 212.8% YoY shows dramatic margin expansion and operational leverage maturing
- High interest coverage ratio of 297.2x and solid current ratio of 1.56x indicate excellent liquidity and financial stability
- Growing revenue base of $1.5B with 18.7% YoY growth shows sustained market demand for observability solutions
- 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
- Low ROE of 5.3% and ROA of 3.3% suggest capital efficiency could improve despite strong profitability metrics
- Operating margin of 14.0% leaves room for expansion relative to gross margin, indicating potential SG&A optimization needed
- Software-as-a-service business model dependent on customer retention and competitive positioning in observability market
- 10 Form 4 insider filings in last 90 days warrant monitoring for potential insider activity patterns or management concerns
- Net margin of 9.8% still represents only modest bottom-line conversion despite exceptional gross profitability
- 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
- Free cash flow trend and FCF margin sustainability above 20%
- Revenue growth rate maintenance in 15-20% range amid market competition
- Operating margin expansion trajectory toward 20%+ as scale increases
- Customer concentration and net revenue retention rates in SaaS cohorts
- Capital allocation decisions with zero debt and $1.1B cash balance
- 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 21.3% 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 141% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.37 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 |
|---|---|---|---|
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773779033.xml | View → |
| Mar 9, 2026 | 4 | xslF345X05/wk-form4_1773093380.xml | View → |
| Mar 9, 2026 | 4 | xslF345X05/wk-form4_1773093353.xml | View → |
| Mar 9, 2026 | 4 | xslF345X05/wk-form4_1773093319.xml | View → |
| Mar 9, 2026 | 4 | xslF345X05/wk-form4_1773093281.xml | View → |
❓ Frequently Asked Questions about DT
What is the AI rating for DT?
Dynatrace, Inc. (DT) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 88% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DT's key strengths?
Claude: Exceptional gross margin of 81.8% demonstrates strong pricing power and efficient service delivery in software analytics. Robust free cash flow generation of $317.3M (21.3% FCF margin) providing flexibility for growth investments and returns. 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: Low ROE of 5.3% and ROA of 3.3% suggest capital efficiency could improve despite strong profitability metrics. Operating margin of 14.0% leaves room for expansion relative to gross margin, indicating potential SG&A optimization needed. 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 $1.5B.
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 $0.48.
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 rating reflects both perspectives for balanced insights.
Is DT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Dynatrace, Inc. has a BUY rating with 88% 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 5.3% (sector avg: 22%), net margin of 9.8% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy DT stock in 2026?
Our dual AI analysis gives Dynatrace, Inc. a combined BUY rating 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 $335.5M, with capital expenditures of $18.2M. FCF margin is 21.3%.
How does DT compare to other Technology stocks?
Vs Technology sector averages: Net margin 9.8% (avg: 18%), ROE 5.3% (avg: 22%), current ratio 1.56 (avg: 2.5).