DT: Additional thoughts post earnings; Thinking more about the FY/27 ARR guide

研报英文原文证据摘录

DT: Additional thoughts post earnings; Thinking more about the FY/27 ARR guide

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)

May 14, 2026

Dynatrace, Inc.

Additional thoughts post earnings; Thinking more about the FY/27 ARR guide

NYSE: DT | USD 34.73 | Outperform | Price Target USD 45.00

Sentiment: Neutral

Maintain OP rating and $45 PT as look forward to hosting management on our NE bus tour on May 28th.

All you need to know. While there were questions about Q4 results, which we'd classify as good not great, the biggest point of

feedback from investors post Q4/26 earnings was pushback on the FY/27 ARR guide looking aggressive. Digging deeper, cc NNARR

growth trended from +16% in Q2/16 to +11% in Q3/26 to close the year with the lowest growth of +9% in Q4/26. For FY/26, cc

NNARR grew +12% and at the high-end of FY/27 guidance, NNARR implies +23% growth, nearly 2x FY/26's growth. Now on the

call, management indicated there was no change in their guidance philosophy noting confidence around the outlook came from

pipeline visibility, what should be a good year of DPS renewals, improved sales capacity and productivity, logs adoption and new

logos. All of that said, we still fielded questions around their outlook, especially given management noted they expect more 1H

weighing than normal as we estimate 44-47% of NNARR could come from the 1H/27 vs 43% in FY/25 and 44% in FY/26. So let's

put some numbers around it to see if their guidance seems reasonable.

• The company reported ~$280M in cc NNARR in FY/26, which was ~$30M higher than FY/25.

• FY/27 guidance implies cc NNARR ~$50M higher than FY/26.