Dynatrace

DT

Market cap $12.4B

Shares of Palantir (NASDAQ:PLTR | PLTR Price Prediction) are up 9% in Friday morning trading, changing hands near $156.

Investors interested in stocks from the Computers - IT Services sector have probably already heard of TD SYNNEX (SNX) and Dynatrace (DT). But which of these two stocks offers value investors a better bang for their buck right now?

Dynatrace (DT) possesses solid growth attributes, which could help it handily outperform the market.

Dynatrace, Inc. (DT) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript

Dynatrace delivered Q4 revenue of $531.7M (+19.4% y/y), beating estimates, with 95% recurring subscription revenue and robust free cash flow generation. Despite strong financial health, including $1.1B in cash and no debt, DT faces market concerns over ARR growth deceleration to 16%-17% and cautious FY guidance. DT's AI observability products and integration with major hyperscalers position it well to adapt, countering fears of obsolescence from AI disruption.

Dynatrace is a high-margin, AI-powered observability platform with $2.054 billion in ARR, strong FCF, and a valuation still below peer software names. DT's ~96% subscription revenue, 111% net retention, and $3.2 billion RPO support durability, visibility, and a real recurring-revenue base. Starboard Value, the activist investor that acquired a stake in DT recently, is seeing margin expansion, S&M efficiency, and capital return, but buybacks should be treated as an upside lever, not guaranteed.

Dynatrace, Inc (NYSE:DT) on Wednesday reported upbeat fourth-quarter financial results and issued first-quarter sales guidance below estimates.

Dynatrace NYSE: DT reported a stronger finish to fiscal 2026, with executives emphasizing steady annual recurring revenue growth, expanding consumption of its log management products and growing demand tied to artificial intelligence and cloud complexity.

Dynatrace, Inc. (DT) Q4 2026 Earnings Call Transcript

While the top- and bottom-line numbers for Dynatrace (DT) give a sense of how the business performed in the quarter ended March 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.