Dynatrace

DT

Market cap $10.7B

BOSTON--(BUSINESS WIRE)--Dynatrace (NYSE: DT), the leading AI-powered observability platform, today announced that its executives will present at the Morgan Stanley Technology, Media, and Telecom Conference on Wednesday, March 4 at 2:30 p.m. ET. The webcast will also be accessible on the Investor Relations section of the Dynatrace website, http://ir.dynatrace.com, and archived on the site for 30 days. About Dynatrace Dynatrace (NYSE: DT) is advancing observability for today's digital businesses.

NYSE issues a pre-market daily advisory direct from the trading floor. NEW YORK, Feb. 25, 2026 /PRNewswire/ -- The New York Stock Exchange (NYSE) provides a daily pre-market update directly from the NYSE Trading Floor.

To the dismay of many investors, the rout in software stocks has yet to see a significant reprieve. The iShares Expanded Tech-Software Sector ETF BATS: IGV, a proxy for the industry's performance, is down nearly 22% in 2026.

In the fourth quarter of 2025, the Baron Discovery Fund returned 0.19% (Institutional Shares), trailing the Russell 2000 Growth Index by 1.03%. In these periods, low quality (high debt and poor profitability) and short-term price momentum-oriented stocks outperformed. Exact Sciences Corporation received a buyout offer in the fourth quarter by Abbott Laboratories (ABT) for a price of $105 in cash.

Investors interested in stocks from the Computers - IT Services sector have probably already heard of Genpact (G) and Dynatrace (DT). But which of these two stocks presents investors with the better value opportunity right now?

In a market sector recently defined by volatility and skepticism, Dynatrace NYSE: DT has effectively separated itself from the pack. While many software companies struggle to justify their valuations amid slowing IT budgets, the observability leader delivered a decisive beat-and-raise report for its third fiscal quarter of 2026.

Dynatrace earns a reiterated buy rating as ARR growth stabilizes and deal quality improves, signaling healthier fundamentals. Q3 2026 ARR rose ~20% y/y with net new ARR turning positive, driven by larger enterprise deals and strong partner execution. Partner-led upmarket strategy accelerates platform adoption, enhancing growth visibility and predictability as standardized deployments scale.

Dynatrace trades at a significant valuation discount to Datadog despite strong revenue, earnings, and free cash flow growth. DT's net revenue retention remains above 110%, and margins are stable, indicating robust customer economics and unit efficiency. The market appears to price DT as a mature, ex-growth company, overlooking its accelerating EBITDA and efficient scaling.

Dynatrace (DT) is well positioned to outperform the market, as it exhibits above-average growth in financials.

Dynatrace, Inc. delivered a double beat and raise in Q3, with sales up 18.2% y/y and strong profitability metrics. DT maintains robust cash generation, a debt-free balance sheet, and announced a $1B buyback, signaling management's confidence in undervaluation. AI disruption fears weigh on SaaS sentiment, but DT's pivot to agentic AI and platform integration positions it for resilient growth.