Update shared on 20 Dec 2025
Fair value Decreased 0.46%Analysts have modestly trimmed their price target on Dynatrace from 61.06 dollars to 60.78 dollars, reflecting slightly lower growth and valuation assumptions, partly offset by better projected profitability.
What's in the News
- Dynatrace expanded its collaboration with Google Cloud as a launch partner for Gemini CLI extensions and Gemini Enterprise, giving developers in-terminal access to observability and root-cause analysis while connecting AI agents directly to the Dynatrace platform via Google's A2A protocol (Client Announcements).
- The company deepened its partnership with AWS, earning AWS Agentic AI Specialization and recognition as AWS Public Sector Technology Partner of the Year in LATAM, along with a series of new integrations that improve AI-driven observability, automation, and security for AWS workloads (Client Announcements).
- Dynatrace launched a new integration with Amazon Bedrock AgentCore, providing real-time observability into autonomous agents and their interactions across AWS services to monitor, debug, and govern agentic AI workflows (Client Announcements).
- On Microsoft Azure, Dynatrace introduced a next generation cloud operations solution and became the first observability platform to integrate with Azure SRE Agent. This integration enhances proactive detection, auto remediation, and reliability for AI driven cloud environments (Product Related Announcements and Client Announcements).
- Dynatrace and ServiceNow entered a multi year strategic collaboration to advance autonomous IT operations, combining Dynatrace observability and agentic AI with ServiceNow AI agents and AIOps to scale intelligent automation for enterprise customers (Client Announcements).
Valuation Changes
- The fair value estimate has fallen slightly from 61.06 dollars to 60.78 dollars per share, reflecting marginally softer long term assumptions.
- The discount rate has edged down from 8.48 percent to 8.44 percent, indicating a modestly lower perceived risk profile.
- Revenue growth has eased fractionally from 14.82 percent to 14.82 percent, a negligible change in projected top line expansion.
- The net profit margin has risen slightly from 17.66 percent to 17.87 percent, signaling improved profitability expectations.
- The future P/E has declined modestly from 48.31 times to 47.49 times, pointing to a small compression in the valuation multiple applied to earnings.
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