Dynatrace, Inc. (NYSE:DT) defied analyst predictions to release its quarterly results, which were ahead of market expectations. The company beat forecasts, with revenue of US$436m, some 2.2% above estimates, and statutory earnings per share (EPS) coming in at US$1.19, 848% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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.

View our latest analysis for Dynatrace

Taking into account the latest results, the current consensus from Dynatrace's 35 analysts is for revenues of US$1.94b in 2026. This would reflect a notable 19% increase on its revenue over the past 12 months. Statutory earnings per share are expected to plunge 56% to US$0.72 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.93b and earnings per share (EPS) of US$0.71 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$65.13, suggesting that the company has met expectations in its recent result. 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$71.00 per share, while the most bearish prices it at US$54.20. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Dynatrace is an easy business to forecast or the the analysts are all using similar assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Dynatrace's revenue growth is expected to slow, with the forecast 15% annualised growth rate until the end of 2026 being well below the historical 23% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 12% annually. So it's pretty clear that, while Dynatrace's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Dynatrace going out to 2027, and you can see them free on our platform here.

Even so, be aware that Dynatrace is showing 2 warning signs in our investment analysis , and 1 of those is concerning...

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