Dynatrace, Inc.: 4Q26 Recap: Continued Stability, Eyeing Acceleration

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Dynatrace, Inc.: 4Q26 Recap: Continued Stability, Eyeing Acceleration

Equity Research

U.S. Software

13 May 2026

Dynatrace, Inc.

4Q26 Recap: Continued Stability,

Eyeing Acceleration

NNARR growth deceleration, softer gross customer adds, and DT OVERWEIGHT

a decline in NRR drove some questions in Q4 results. That Unchanged

said, there are mechanical aspects to DT's model that can U.S. Software UnchangedPOSITIVE

support an acceleration opportunity over the course of FY27, Price Target USD 44.00

particularly tied to pending DPS renewals. lowered -6% from USD 47.00

Price (13-May-26) USD 34.73

Potential Upside/Downside +26.7%

DT has executed on improving its GTM motion and product innovation (particularly with logs) Source: Bloomberg, Barclays Research

over the past two years and driven stability throughout FY26 (16% y/y cc ARR growth four

quarters in a row). That said, management is still wary of committing to a timeline for Market Cap (USD mn) 10358

acceleration as some of its core initiatives (logs, AI, developer-led expansion, etc) are still Shares Outstanding (mn) 298.25

relatively early (although gaining momentum). The key focus for its acceleration will be tied to Free Float (%) 99.47

the expansion of its DPS base (particularly the FY24 cohort that is coming up for its 3-year 52 Wk Avg Daily Volume (mn) 4.4

renewal as well as Year 1 or Year 2 DPS cohorts that have an option to renew early). While lower Dividend Yield (%) N/A

gross customer adds in the quarter optically drive some caution, we are encouraged by DT's Return on Equity TTM (%) 6.96

continued strong average land size (>$200k), new logo ARR +43% y/y, and average ARR per Current BVPS (USD) 9.18

customer >$500k. We view DT's FY27 as relatively conservative, although we expect that there Source: Bloomberg