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It's been a good week for Dynatrace, Inc. (NYSE:DT) shareholders, because the company has just released its latest full-year results, and the shares gained 9.7% to US$53.37. Dynatrace reported US$1.7b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$1.59 beat expectations, being 6.8% higher than what the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Dynatrace after the latest results.
Taking into account the latest results, the most recent consensus for Dynatrace from 35 analysts is for revenues of US$1.96b in 2026. If met, it would imply a notable 15% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to tumble 49% to US$0.82 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.94b and earnings per share (EPS) of US$0.72 in 2026. Although the revenue estimates have not really changed, we can see there's been a nice increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
See our latest analysis for Dynatrace
There's been no major changes to the consensus price target of US$63.65, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Dynatrace at US$70.00 per share, while the most bearish prices it at US$55.00. This is a very narrow spread of estimates, implying either that Dynatrace is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Dynatrace's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Dynatrace's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 15% growth on an annualised basis. This is compared to a historical growth rate of 22% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% annually. Factoring in the forecast slowdown in growth, it looks like Dynatrace is forecast to grow at about the same rate as the wider industry.