📊 DT Key Takeaways
Is DT a Good Investment? Thesis Analysis
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.
Why Buy 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
DT Investment Risks to Consider
- 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
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
DT Financial Metrics
💡 AI Analyst Insight
The 21.3% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
DT Profitability Ratios
DT vs Technology Sector
How Dynatrace, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is DT Overvalued or Undervalued?
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.
DT Balance Sheet & Liquidity
DT 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
DT Quarterly 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.
DT Capital Allocation
DT SEC 10-K & 10-Q Filing 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 an AI rating of STRONG BUY with 92% 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.
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.
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 March 2026, Dynatrace, Inc. has a STRONG BUY rating with 92% 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 STRONG 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).