DT: Announces two new BOD appointments; introduces FY/29 rule of 50 target and plans for an analyst day

Research evidence excerpt

DT: Announces two new BOD appointments; introduces FY/29 rule of 50 target and plans for an analyst day

EQUITY RESEARCH QUICK TAKE

RBC Capital Markets, LLC

Matthew Hedberg (Head of Global TIMT

Research)

Matthew Swanson (Analyst)

Dan Bergstrom (Analyst)

Simran Biswal (AVP)

Michael Richards (AVP)

Rishi Jaluria (Analyst)

July 1, 2026

Dynatrace, Inc.

Announces two new BOD appointments; introduces FY/29 rule of 50 target and plans for

an analyst day

NYSE: DT | USD 43.91 | Outperform | Price Target USD 45.00

Sentiment: Positive

What's new? Before the open, Dynatrace announced the appointment of George Riedel and Dan Streetman to its board of directors

as part of the company's engagement with activist investor Starboard (recall, Starboard announced a DT stake in April). In the

press release management outlined its intentions to continue to engage with Starboard “substantively in the coming months.”

The company also announced plans to hold an Investor Day following its Q2/27 earnings report (note they announced Q2 FY/26

results on November 5, 2025) to outline its path to the rule of 50 in FY/29, which is defined as ARR growth + non-GAAP operating

margin. This announcement follows activist investor Starboard Value’s shareholder letter in April where the firm said they have

made a “substantial investment." In the letter, Starboard acknowledged steady growth but when considering broader observability

tailwinds, outlined goals of: 1) generating at least 40% incremental margins on future revenue growth; 2) targeting 500bps of

adjusted operating margin expansion by FY/29; 3) repurchasing up to $2.5B in shares; 4) generating more than $3.30 FCF/share

by FY/29.

Our view. We are pleased to see Dynatrace work with Starboard to continue improving the company's growth and margin profile,