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Dynatrace, Inc.

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Dynatrace, Inc. • NYSE
$44.56 ▲ 0.88% (+0.39)
Market Cap $13.43 B
52w High $63.00
52w Low $39.30
Dividend Yield 0%
P/E 26.68
Volume 1.45M
Outstanding Shares 301.49M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2026 $493.849M ▲ $331.116M ▲ $57.243M ▲ 11.591% ▲ $0.19 ▲ $92.808M ▲
Q1-2026 $477.349M ▲ $329.802M ▲ $47.955M ▲ 10.046% ▲ $0.16 ▲ $68.799M ▲
Q4-2025 $445.165M ▲ $317.157M ▲ $39.304M ▼ 8.829% ▼ $0.13 ▼ $49.564M ▼
Q3-2025 $436.169M ▲ $306.144M ▲ $361.752M ▲ 82.938% ▲ $1.21 ▲ $60.927M ▼
Q2-2025 $418.129M $293.319M $44.008M 10.525% $0.15 $61.04M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2026 $1.315B ▼ $4.082B ▲ $1.303B ▼ $2.779B ▲
Q1-2026 $1.346B ▲ $4.081B ▼ $1.383B ▼ $2.698B ▲
Q4-2025 $1.113B ▲ $4.14B ▲ $1.519B ▲ $2.621B ▲
Q3-2025 $1.008B ▲ $3.735B ▲ $1.182B ▼ $2.553B ▲
Q2-2025 $1.005B $3.33B $1.186B $2.144B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2026 $57.243M ▲ $32.017M ▼ $1.943M ▲ $-55.223M ▼ $-22.358M ▼ $27.83M ▼
Q1-2026 $47.955M ▲ $269.692M ▲ $-8.448M ▲ $-43.854M ▼ $230.342M ▲ $262.21M ▲
Q4-2025 $39.304M ▼ $163.021M ▲ $-17.831M ▼ $-39.598M ▼ $109.557M ▲ $148.455M ▲
Q3-2025 $361.752M ▲ $42.238M ▲ $-4.864M ▲ $-27.465M ▲ $305K ▲ $37.569M ▲
Q2-2025 $44.008M $23.65M $-11.025M $-41.757M $-23.138M $20.138M

Revenue by Products

Product Q3-2025Q4-2025Q1-2026Q2-2026
Service
Service
 $20.00M ▲$20.00M ▲$20.00M ▲$20.00M ▲
Subscription and Circulation
Subscription and Circulation
 $420.00M ▲$420.00M ▲$460.00M ▲$470.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Dynatrace’s income statement shows a business that has scaled steadily while keeping its profitability profile intact and even improving it. Revenue has grown strongly each year, and gross profits have risen in line, which suggests good pricing power and an efficient cloud-based model. Operating profits have stayed positive and gradually increased, indicating that the company can grow without sacrificing discipline on costs. The biggest swing is in recent net income and earnings per share, which step up sharply versus prior years. That kind of jump often reflects a mix of operational improvement and one‑time or accounting items (for example, tax adjustments or balance sheet revaluations), so it may not all be “new normal” profit. Overall, the trend is of a maturing software company moving from growth-at-all-costs toward stronger, more consistent earnings, but with the caveat that the latest spike in net income deserves a closer look under the hood.

Balance Sheet

Balance Sheet The balance sheet looks like that of a relatively conservative, well-funded software company. Total assets have expanded steadily, with cash balances rising each year, giving Dynatrace a growing liquidity cushion. Debt has come down materially over time, which reduces financial risk and interest burden, and equity has built up consistently, reflecting the accumulation of retained earnings and a stronger capital base. This combination—more cash, less debt, more equity—points to a solid financial foundation and flexibility to invest, acquire, or weather downturns. The main watchpoint is ensuring that intangible and acquired assets continue to generate returns that justify their weight on the balance sheet, but overall the structure appears robust rather than stretched.

Cash Flow

Cash Flow Dynatrace’s cash flow profile is a key strength. Operating cash flow has grown steadily alongside the business, showing that reported earnings convert well into actual cash. Free cash flow has also increased year after year, and the company’s capital spending needs are modest relative to the cash it generates, which is typical of an asset-light software model. This leaves plenty of room for continued investment in product, sales, and infrastructure without straining finances. Strong, recurring free cash flow also gives management options for potential M&A, balance sheet reinforcement, or future capital returns, depending on strategy. The main risk is that any slowdown in growth or pressure on margins would flow quite directly into cash generation, but the current trajectory is clearly positive.

Competitive Edge

Competitive Edge Dynatrace occupies a strong position in the observability and application performance space, competing with names like Datadog and New Relic. Its edge comes from a tightly integrated, all‑in‑one platform that combines monitoring, automation, analytics, and security, rather than requiring customers to stitch together multiple tools. The Davis AI engine and deep automation are central differentiators, aiming to deliver root‑cause answers and remediation instead of just dashboards of data. High switching costs—because the platform touches many parts of a customer’s tech stack—create stickiness once Dynatrace is embedded. Partnerships with major cloud providers further reinforce its reach and relevance. The flip side is that this is a crowded, fast-moving market with aggressive, well-funded rivals and increasing offerings from the cloud giants themselves. Maintaining a premium position will depend on continuing to innovate faster than peers and proving clear value to large, complex enterprises.

Innovation and R&D

Innovation and R&D Innovation and R&D sit at the core of Dynatrace’s strategy and moat. The company has built a sophisticated AI layer (Davis) and a specialized data foundation (Grail) to handle massive streams of observability and security data in real time, and it continues to expand capabilities across tracing, digital experience, and runtime application security. The roadmap points toward more proactive operations (predicting and preventing issues), deeper security coverage in the cloud, and tools tailored to developers, plus new generative AI features to make the platform more conversational and automated. This focus supports differentiation but also demands ongoing heavy investment and careful execution; falling behind in AI, cloud integrations, or developer experience could quickly erode its edge. For now, the direction of R&D is clearly aligned with major industry trends—AI-driven operations, unified observability and security, and tight cloud and AI service integrations.

Summary

Overall, Dynatrace looks like a scaled, high‑margin software platform with a strengthening financial profile and a clear strategic focus. Revenue, profits, and cash flows have all trended upwards, with a particularly strong recent increase in net income that merits deeper analysis to separate structural improvement from one‑off effects. The balance sheet is clean and increasingly cash-rich, with declining debt and rising equity, which supports resilience and strategic flexibility. Competitively, Dynatrace benefits from a sticky, AI‑driven, all‑in‑one observability and security platform and strong cloud partnerships, but it operates in a highly competitive, rapidly evolving space where continuous innovation is essential. Its heavy emphasis on AI, automation, and integrated data architecture positions it well against long-term trends, while also introducing execution risk if the company fails to keep pace with technological shifts or rivals’ offerings.

NEWS

November 18, 2025 · 9:00 AM UTC

Dynatrace Integrates with Amazon Bedrock AgentCore to Deliver End-to-End Observability for Agentic AI on AWS

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November 13, 2025 · 9:30 AM UTC

Dynatrace Announces New Cloud Operations Solution for Microsoft Azure

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November 13, 2025 · 9:00 AM UTC

Dynatrace and Microsoft Partner to Scale Enterprise Customer AI Initiatives

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November 5, 2025 · 6:30 AM UTC

Dynatrace Reports Second Quarter Fiscal Year 2026 Financial Results

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November 4, 2025 · 8:00 AM UTC

Dynatrace to Present at Upcoming Investor Conferences

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