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DT: AI-Powered Automation And Share Buybacks Will Drive Market Gains Ahead

Update shared on 07 Nov 2025

Fair value Decreased 2.07%
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AnalystConsensusTarget's Fair Value
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1Y
-10.7%
7D
-6.6%

Analysts have slightly decreased their price target for Dynatrace from $63.09 to $61.79. They cite minor adjustments in key financial metrics such as growth and profitability forecasts as the reason for this change.

What's in the News

  • Dynatrace raised its full-year fiscal 2026 earnings guidance. The company now expects total revenue between $1,985 million and $1,995 million, up from previous guidance of $1,970 million to $1,985 million, with revenue growth projected between 17% and 17.5% (Key Developments).
  • The company issued new guidance for the third quarter of fiscal 2026, forecasting total revenue between $503 million and $508 million and revenue growth between 15% and 16% (Key Developments).
  • Dynatrace and ServiceNow announced a multi-year strategic collaboration to enhance autonomous IT operations and automate processes for enterprise customers through advanced AI integration (Key Developments).
  • Dynatrace completed a share repurchase of 994,288 shares for $49.98 million in the latest quarter. In total, the company has repurchased 5,345,991 shares for $267.59 million under its ongoing buyback program (Key Developments).
  • The company joined the GitHub MCP Registry, empowering developers to integrate AI-powered observability from Dynatrace into their workflows and furthering its commitment to open, cloud-native innovation (Key Developments).

Valuation Changes

  • The consensus analyst price target has fallen slightly from $63.09 to $61.79.
  • The discount rate has risen modestly from 8.41% to 8.47%.
  • The revenue growth forecast has decreased marginally from 15.15% to 15.08%.
  • The net profit margin has improved from 19.22% to 19.60%.
  • The future P/E ratio has declined from 47.79x to 44.18x.

Disclaimer

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