DT

Investing.com-- Jefferies updated its outlook on several U.S. software stocks, highlighting opportunities across observability platforms, enterprise technology and cloud-based tools going into the September quarter earnings season. Still guessing which stocks will beat the market? Our AI portfolio updates monthly and is outperforming the S&P 500 by 118%. See this month's list » The firm identified companies with strong execution and reasonable valuations, while flagging risks for others facing elevated expectations or competitive pressures. The analysis comes as software companies navigate varying demand environments and the evolving impact of artificial intelligence on their businesses. Dynatrace Jefferies maintained its "buy" rating and $75 price target on the observability platform provider. The firm said Dynatrace entered its fiscal second-quarter report with a cushion after a strong prior quarter, with Street expectations for new recurring revenue looking modest. Rising consumption should increasingly flow into recurring revenue as several large platform-subscription cohorts come up for renewal, mostly in the second half of the year. Jefferies called the company a reasonably valued way to play observability and enterprise adoption of AI agents, though it flagged sales execution and share loss to Datadog as risks. IBM Jefferies kept its "buy" rating and raised its price target to $270 from $260. The firm said IBM faced a show-me third quarter with a lowered bar, after a second-quarter miss it blamed on execution problems and slipped mainframe deals. It viewed the slippage as deferred rather than lost business and said customer checks showed mainframe workloads remained mission critical. The stock should grind higher if IBM recovered most of the delayed deals, showed software growth turning and raised or narrowed its full-year outlook, Jefferies said. Datadog Jefferies maintained its "hold" rating but cut its price target to $280 from $300. The firm said Datadog's fundamentals remained best in class, with revenue growth accelerating for six straight quarters and strength broadening well beyond AI-native customers. The setup into the third quarter was tougher, however, as expectations were elevated after a steep share rally and its largest customer was expected to start trimming usage. Valuation was Jefferies' main objection, and it saw better risk-reward in other AI infrastructure names such as Snowflake. Palantir Unsure what to buy ahead of earnings? Our AI's recent pre-earnings calls delivered gains of +77% to +118% after results dropped. See this month's earnings picks » Jefferies kept its "underperform" rating and $80 price target. The firm said Palantir delivered standout execution but faced a harder setup into the third quarter, with consensus revenue already above the top of company guidance and comparisons getting tougher in the second half. The stock's sharp run since the last report left little room for error, while competition from frontier AI labs and Databricks was intensifying. Jefferies credited the company's growth and profitability but called valuation full. Atlassian Jefferies maintained its "buy" rating and raised its price target to $245 from $200. The firm expected Atlassian to beat revenue estimates in its fiscal first quarter, helped by the easiest comparison of the year, larger enterprise deals and accelerating contracted backlog. The expected slowdown in total revenue growth next year was a mechanical effect of ending support for data-center products and the shift to the cloud, and it saw growth re-accelerating after that. Jefferies acknowledged the stock's big run raised the bar but said valuation sat at a discount to high-growth peers. Procore Jefferies kept its "buy" rating and $75 price target. The firm said Procore offered upside despite macro noise, after the stock sold off on worries about higher interest rates following a September rate hike. The company had executed well through the uncertainty and forward-looking macro indicators were mostly positive. Jefferies saw a path to modest re-acceleration on cross-selling, volume expansion and international growth, with room for margins to improve, and called the entry point attractive. Roper Jefferies maintained its "buy" rating and $500 price target. The firm said Roper's third-quarter bar looked achievable, but the stock remained a show-me story until growth inflected. Expectations were reasonable after solid first-half execution, and green shoots at Deltek and Neptune, its two largest businesses, were encouraging, though investors still wondered whether the company was fully out of the woods. Jefferies welcomed Roper's tilt toward acquisitions over buybacks but noted it had deployed little of its firepower and called valuation attractive. Monday.com Jefferies kept its "hold" rating and $95 price target. The firm said monday.com's third quarter looked beatable, helped by an easier comparison and what it viewed as prudent guidance. AI monetization was starting to show, with AI-related recurring revenue growing rapidly. But it flagged near-term disruption risk from July's workforce cut of about a fifth and a dip in net dollar retention as earlier price increases lapped. Longer-term AI risk loomed because workflow tools looked more exposed than heavy systems of record, Jefferies said. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. Original Article Top Software Stocks to Watch Going Into Sept-Qtr Earnings, According to Jefferies Asia stocks slide as AI doubts deepen, Korean chips fall European stocks buckle as French yields cross 5% barrier

DT's AI-driven technology platform monitors enterprise cloud environments across the world in order to optimize overall application performance and security. The company's first-quarter 2027 report showed $2.14 billion in annual recurring revenue (a 17% year-over-year gain), total revenue of $554.5 million (a 15% jump), non-GAAP net income of $0.48 per share (exceeding guidance of $0.03 per share), and offered second-quarter revenue and full-year non-GAAP operating margin guidance of up to $570 million and 29.75%, respectively. DT reports again on Nov. 4. It's no wonder DT shares are up 49% this year – and they could rise more. MoneyFlows data shows how Big Money investors are once again betting heavily on the forward picture of the stock. Institutional volumes reveal plenty. For most of 2026, DT has enjoyed strong investor demand, which we believe to be institutional support. Each green bar signals unusually large volumes in DT shares. They reflect our proprietary inflow signal, pushing the stock higher: Plenty of technology names are under accumulation right now. But there's a powerful fundamental story happening with Dynatrace. Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, DT has had strong sales and earnings growth: - 3-year sales growth rate (+20.3%) - 3-year EPS growth rate (+60.6%) Source: FactSet Also, EPS is estimated to ramp higher this year by +14.9%. Now it makes sense why the stock has been generating Big Money interest again. DT has a track record of strong financial performance. Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term. Dynatrace has been a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis. It's made the rare Outlier 20 report six times this year and 33 times since 2015. The blue bars below show when DT was a top pick in 2026…institutions keep buying: Tracking unusual volumes reveals the power of money flows. This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward. The DT revival isn't new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio. Disclosure: the author holds no position in DT at the time of publication. If you are a Registered Investment Advisor (RIA) or a serious investor, take your investing to the next level. MoneyFlows created 11 Frontiers indexes to help serious investors capture AI-driven themes and learn the leading stocks in each Frontier. Get started here. This article was originally posted on FX Empire - Ethereum Price Prediction: ETH May Dip to $2,300 Before the Rally Resumes - US Dollar Price Forecast: DXY Eyes 102.49, Can EUR/USD Hold 1.1180 Ahead of CPI? - Fortinet Shares Jump with Earnings on Horizon - Ethereum Price Prediction: ETH Targets 10% Rally Despite AI Jitters - Bitcoin Price Forecast: Hot US Inflation Threatens BTC Drop Below $80K - XRP Price Prediction: XRP Could Recover to $1.50 as Standard Chartered Becomes Custodian

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Dynatrace (DT), which belongs to the Zacks Computers - IT Services industry. When looking at the last two reports, this software intellegence company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 5.90%, on average, in the last two quarters. For the last reported quarter, Dynatrace came out with earnings of $0.48 per share versus the Zacks Consensus Estimate of $0.45 per share, representing a surprise of 6.67%. For the previous quarter, the company was expected to post earnings of $0.39 per share and it actually produced earnings of $0.41 per share, delivering a surprise of 5.13%. With this earnings history in mind, recent estimates have been moving higher for Dynatrace. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Dynatrace currently has an Earnings ESP of +0.41%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric. Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dynatrace, Inc. (DT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let's take a look at how Dynatrace (NYSE:DT) and the rest of the cloud monitoring stocks fared in Q2. Software is eating the world, increasing organizations' reliance on digital-only solutions. As more workloads and applications move to the cloud, the reliability of the underlying cloud infrastructure becomes ever more critical and ever more complex. To solve this challenge, companies and their engineering teams have turned to a range of cloud monitoring tools that provide them with the visibility to troubleshoot issues in real-time. The 4 cloud monitoring stocks we track reported a strong Q2. As a group, revenues beat analysts' consensus estimates by 2.1% while next quarter's revenue guidance was 0.7% above. Luckily, cloud monitoring stocks have performed well with share prices up 14.8% on average since the latest earnings results. With its platform processing over 30 trillion pieces of IT performance data daily, Dynatrace (NYSE:DT) provides an AI-powered platform that helps organizations monitor, secure, and optimize their applications and IT infrastructure across cloud environments. Dynatrace reported revenues of $554.5 million, up 16.2% year on year. This print exceeded analysts' expectations by 0.9%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts' adjusted operating income estimates but a significant miss of analysts' billings estimates. Dynatrace delivered the weakest performance against analyst estimates, weakest guidance update, and weakest full-year guidance update of the whole group. Interestingly, the stock is up 29.1% since reporting and currently trades at $59.03. Is now the time to buy Dynatrace? Access our full analysis of the earnings results here, it's free. Named after a database the founders had to painstakingly look after at their previous company, Datadog (NASDAQ:DDOG) provides a software platform that helps organizations monitor and secure their cloud applications, infrastructure, and services. Datadog reported revenues of $1.12 billion, up 35.6% year on year, outperforming analysts' expectations by 3.9%. The business had an exceptional quarter with a solid beat of analysts' annual recurring revenue estimates and an impressive beat of analysts' billings estimates. Datadog achieved the biggest analyst estimate beat, highest guidance raise, and fastest revenue growth in the group. The company added 170 enterprise customers paying more than $100,000 annually to reach a total of 4,720. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 2% since reporting. It currently trades at $277.37. Is now the time to buy Datadog? Access our full analysis of the earnings results here, it's free. Born from the frustration of developers being woken up by unprioritized alerts, PagerDuty (NYSE:PD) is a digital operations management platform that helps organizations detect and respond to IT incidents, outages, and other critical issues in real-time. PagerDuty reported revenues of $124.4 million, flat year on year, exceeding analysts' expectations by 0.9%. It may have had the worst quarter among its peers, but its results were still good as it also locked in accelerating customer growth and a solid beat of analysts' adjusted operating income estimates. PagerDuty delivered the slowest revenue growth among its peers. The company added 126 customers to reach a total of 15,506. Interestingly, the stock is up 23.3% since the results and currently trades at $15.58. Read our full analysis of PagerDuty's results here. Originally pioneering hyperconverged infrastructure to break down traditional data center silos, Nutanix (NASDAQ:NTNX) provides a unified software platform that enables organizations to run applications and manage data across private, public, and hybrid cloud environments. Nutanix reported revenues of $757.1 million, up 15.9% year on year. This print topped analysts' expectations by 2.6%. It was a very strong quarter as it also put up an impressive beat of analysts' billings estimates and a solid beat of analysts' adjusted operating income estimates. The stock is up 8.7% since reporting and currently trades at $71.11. Read our full, actionable report on Nutanix here, it's free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market's biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market's primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market's dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

NEW YORK, Sept. 14, 2026 /PRNewswire/ -- Fred Alger Management, LLC ("Alger"), a privately held growth equity investment manager, today announced the quarterly rebalancing of the Alger Russell Innovation Index ("Index"). Following the close of trading on Friday, September 18, 2026, the Index will be rebalanced, and the following changes will be effective. For additional information, please visit www.lseg.com. Unlock Your Growth Potential with AlgerFounded in 1964, Alger is recognized as a pioneer of growth-style investment management. Privately-owned and headquartered in New York City, Alger can help "Unlock Your Growth Potential" through a suite of growth equity separate accounts, mutual funds, ETFs, and privately offered investment vehicles. Alger's investment philosophy, discovering companies undergoing Positive Dynamic Change, has been in place for more than 60 years. For more information, please visit www.alger.com. Risk Disclosures: Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies' earnings and may be more sensitive to market, political, and economic developments. This material is not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities. Alger pays compensation to third party marketers to sell various strategies to prospective investors. London Stock Exchange Group plc and its group undertakings (collectively, the "LSE Group"). © LSE Group 2026. FTSE Russell is a trading name of certain of the LSE Group companies. "FTSE®" "Russell®", "FTSE Russell®" are trade marks of the relevant LSE Group companies and are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company's express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication. View original content to download multimedia:https://www.prnewswire.com/news-releases/alger-russell-innovation-index-updates-for-third-quarter-2026-302877884.html

Interested in Elastic N.V.? Here are five stocks we like better. Elastic, John Deere, and Dynatrace each reported strong earnings and subsequently received a wave of analyst rating upgrades and price target increases. Elastic's raised fiscal 2027 revenue and margin guidance prompted a Zacks Research double upgrade and target hikes from 13 firms averaging $108 per share. John Deere reached a new all-time high after Baird and Evercore upgraded the stock, citing improved margins and a rebounding agricultural cycle. Earnings season isn’t just when companies report their quarterly results. It’s also when most stock analysts update their ratings and price targets in response to the new data released from the firms they cover. Ratings like Buy, Sell, or Hold are simple heuristics that stand in for deeper fundamental analysis, and it’s hard to hide poor performance from scrutinizing analysts. They aren’t infallible, and reasonable analysts at top firms often have different outlooks on the same companies. But when analysts begin upping their ratings and price targets in unison, it’s time for investors to pay closer attention. That’s the theme connecting the three stocks on our list today; all recently reported earnings and received a wave of price target boosts or rating upgrades following their conference calls. If you’re looking for stocks with more upside after a post-earnings pop, you may want to give a closer look at the following three companies. → 3 Stocks With September Catalysts Investors Shouldn’t Ignore Amsterdam-based data analytics firm Elastic NV (NYSE: ESTC) was an under-the-radar earnings-season winner. Its stock has erased all its 2026 losses, jumping almost 20% following its fiscal Q1 2027 earnings report released on Aug. 27, and it's not hard to see why the market got excited. Revenue and earnings per share (EPS) both surpassed expectations, with sales growing more than 15% year over year (YOY). → Why Hewlett Packard Enterprise’s Sell-Off May Not Last Operating margin also expanded ahead of company projections to 16.2%, and 80 new customers with $100,000 contracts were added in the quarter. However, it was guidance that drove the stock's immediate move. Fiscal 2027 revenue guidance was boosted to a range of $1.998 billion to $2.01 billion, and operating margin is now projected at 19.2%, implying second-half acceleration from Q1’s 16.2% figure. → 3 Earnings Season Winners That Analysts Can't Stop Upgrading Zack’s Research immediately upgraded the stock from Hold to Strong Buy following the report, a rare double upgrade. Target boosts also came fast and furious: 13 firms raised price estimates on ESTC, including a new Street-high target of $128 from Citigroup. The average of the 13 new price targets is $108, implying more than 25% upside from current levels. The stock has pulled back since earnings, but all the hallmarks of a long-term uptrend remain in place. A common bullish signal, the Golden Cross, preceded the earnings release as the 50-day moving average moved above the 200-day moving average. A breakout on the MACD confirmed the uptrend, and a bullish cross of the MACD and signal lines now hints that profit-taking will soon subside. John Deere and Company Inc. (NYSE: DE) reported its results weeks ago, but Baird's upgrade last week renewed its stock rally. Deere reported its fiscal Q3 2026 results back on Aug. 20, beating EPS estimates by 8.7% and revenue estimates by 16.7%. Operating margin grew to 14.4%, and management boosted fiscal 2026 income guidance to a range of $4.75 billion to $5 billion (previous low end $4.5 billion). The stock received a series of price target boosts following earnings, but the upgrades didn’t roll in until more than a week later. On Aug. 31, Baird upgraded the stock from Neutral to Overweight with a new price target of $800. But it also upgraded AGCO Corp. (NYSE: AGCO), a competing agricultural machinery manufacturer that missed Q2 2026 earnings expectations back in July. Baird analyst Mircea Dobre is calling a bottom in the agricultural cycle, not necessarily making a company-specific prediction. Evercore followed on Sept. 2 with an upgrade to Outperform and a new $813 price target, reaffirming the ag outlook. It may have been a sector-wide call, but the latest upgrade sent DE shares to a new all-time high. The stock has finally retaken its February peak after months of range-bound trading along the 50-moving average, and the Relative Strength Index (RSI) has yet to trip an Overbought alarm, so this rally may have more room to run. Dynatrace Inc. (NASDAQ: DT) reported earnings back on Aug. 5, yet Morgan Stanley waited until Aug. 25 to upgrade the stock from Equalweight to Overweight, boosting its price target from $58 to $65. Analyst Sanjit Singh cited public cloud growth and enterprise AI deployment as signs of increased demand observability, and the numbers from the report back up this assessment. Annual recurring revenue (ARR) was up 17% YOY in fiscal Q1 2027, and management boosted the high end of its operating margin guidance to 29.75%. The rally in DT shares began back in May when the RSI dipped below 30 into Oversold territory. Momentum strengthened as the MACD lines pushed above the histogram, and DT is now trading in a tight uptrending price channel. The RSI above 70 has typically been the sell signal on this run, with a bullish MACD cross acting as a corresponding buy indicator. Keep these levels in mind as you watch the stock over the next few weeks. The article "3 Earnings Season Winners That Analysts Can't Stop Upgrading" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

DT offers an AI-enabled technology platform that monitors enterprise cloud environments across geographical regions to optimize application performance and security. The company’s first-quarter 2027 report showed $2.14 billion in annual recurring revenue (a 17% year-over-year gain), total revenue of $554.5 million (a 15% jump), non-GAAP net income of $0.48 per share (exceeding guidance of $0.03 per share), and offered second-quarter revenue and full-year non-GAAP operating margin guidance of up to $570 million and 29.75%, respectively. It’s no wonder DT shares are up 22% this year – and they could rise more. MoneyFlows data shows how Big Money investors are once again betting heavily on the forward picture of the stock. Institutional volumes reveal plenty. So far in 2026, DT has enjoyed strong investor demand, which we believe to be institutional support. Each green bar signals unusually large volumes in DT shares. They reflect our proprietary inflow signal, pushing the stock higher: Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Dynatrace. Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, DT has had strong sales and earnings growth: 3-year sales growth rate (+20.3%) 3-year EPS growth rate (+60.6%) Source: FactSet Also, EPS is estimated to ramp higher this year by +14.6%. Now it makes sense why the stock has been generating Big Money interest again. DT has a track record of strong financial performance. Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term. Dynatrace has been a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis. It’s made the rare Outlier 20 report twice this year and 29 times since 2015. The blue bars below show when DT was a top pick in 2026…institutions remain buyers: Tracking unusual volumes reveals the power of money flows. This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward. The DT revival isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio. Disclosure: the author holds no position in DT at the time of publication. If you are a Registered Investment Advisor (RIA) or a serious investor, take your investing to the next level. MoneyFlows created 11 Frontiers indexes to help serious investors capture AI-driven themes and learn the leading stocks in each Frontier. Get started here. This article was originally posted on FX Empire Dynatrace Gaining on Strong Earnings, Raised Guidance Bitcoin Price Forecast: BTC Holds $73K Support as Elliott Wave Setup Targets $90K EUR/USD, USD/CAD, USD/CHF Forecast: Dollar Faces NFP Risk XRP Price Eyes $1.80 as Active Addresses Hit Record High EUR/USD, USD/JPY, & USD/CAD Short-Term Forecasts for 04/09/2026 Nvidia, AMD and SMCI Test Key Levels as Rates Stay High

A month has gone by since the last earnings report for Dynatrace (DT). Shares have added about 8% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Dynatrace due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Dynatrace, Inc. before we dive into how investors and analysts have reacted as of late. Dynatrace reported first-quarter fiscal 2027 adjusted earnings of 48 cents per share, beating the Zacks Consensus Estimate by 6.67%. The bottom line increased 14.3% year over year, supported by revenue upside and disciplined spending.Revenues of $554.55 million rose 16.2% and topped the consensus mark by 0.96%. Annual recurring revenues, or ARR, reached $2.136 billion, up 17%, as organic net new ARR growth accelerated 41%. Subscription revenues increased 15.9% year over year to $530.26 million and accounted for most of quarterly sales. Management linked the performance to strong net new ARR, growing platform consumption, and enterprise demand for end-to-end observability.Services revenues rose 22.4% year over year to $24.29 million. Total revenues and subscription revenues also exceeded the high end of management’s guidance, each growing 15% on a constant-currency basis. Net new ARR was $85 million, up 66% year over year. Excluding the $13 million contribution from Bindplane, organic net new ARR totaled $73 million, reflecting the company’s fourth consecutive quarter of acceleration in trailing 12-month organic net new ARR growth.Dynatrace added 122 new logos, while average landing size increased to nearly $285,000. Record new-logo ARR growth exceeded 160%, aided by large platform-consolidation transactions, including an eight-figure annual contract value win with a major Latin American financial institution.Gross retention remained in the mid-90% range, while the trailing 12-month net retention rate was 110%. Average ARR per customer increased to well above $500,000, reflecting broader adoption among enterprise clients. Annualized log-management consumption approached $200 million after nearly doubling over two quarters and continued to grow well above 100% year over year. Management expects Bindplane’s open-telemetry capabilities to support data ingestion and further strengthen the logs business.More than 1,000 customers used DT to observe artificial intelligence and large-language-model workloads in production, up from roughly 850 in the prior quarter. More than 800 customers used the company’s agentic capabilities for autonomous operations, up from about 500.Consumption growth among customers using AI capabilities ran 1.5 times above that of non-AI customers. Management identified higher telemetry volumes, AI-observability workloads and direct agent usage as three separate monetization opportunities. For the first quarter of fiscal 2027, non-GAAP gross margin was 84%, down from 85% in the year-ago quarter.On a GAAP basis, research and development expenses increased 25.7% to $135.99 million, reflecting continued platform investment. Sales and marketing expenses rose 9.9% to $181.63 million, while general and administrative expenses increased 9.6% to $61.74 million.Non-GAAP operating income rose 12.9% year over year to $161.60 million, while the related margin was 29% compared with 30% a year earlier. GAAP operating income climbed 14.7% year over year to $71.48 million. The company ended June 30, 2026, with $1.06 billion in cash and cash equivalents. During the quarter, DT repurchased 7.1 million shares for $275 million at an average price of $38.88.Net cash provided by operating activities increased 13.6% year over year to $306.24 million. Adjusted free cash flow rose 17.9% year over year to $309.18 million, with the adjusted free cash flow margin expanding to 56% from 55%. For the second quarter of fiscal 2027, Dynatrace expects revenues of $565-$570 million and subscription revenues of $540-$545 million. Non-GAAP operating margin is projected to be in the range of 29.5%-30%, with adjusted earnings of 48-49 cents per share.For fiscal 2027, management now expects revenues of $2.306-$2.320 billion and ARR of $2.359-$2.379 billion. The company raised the high end of its non-GAAP operating margin outlook to 29.75% and lifted adjusted earnings guidance to $1.97-$1.99 per share.The outlook includes foreign-exchange headwinds of roughly $14 million to ARR and $4 million to revenues. Dynatrace maintained its constant-currency ARR growth forecast of 15.5%-16.5% and adjusted free cash flow margin target of 26.5%. In the past month, investors have witnessed a upward trend in fresh estimates. Currently, Dynatrace has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a score of F on the value side, putting it in the bottom 20% quintile for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Dynatrace has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Dynatrace belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, ServiceNow (NOW), has gained 24.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. ServiceNow reported revenues of $3.99 billion in the last reported quarter, representing a year-over-year change of +24%. EPS of $0.90 for the same period compares with $0.82 a year ago. ServiceNow is expected to post earnings of $1.03 per share for the current quarter, representing a year-over-year change of +7.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for ServiceNow. Also, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dynatrace, Inc. (DT) : Free Stock Analysis Report ServiceNow, Inc. (NOW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Dynatrace’s second quarter was marked by strong revenue growth and a positive market response, as the company surpassed Wall Street’s revenue expectations and posted robust demand for its cloud observability platform. Management attributed this momentum to increased enterprise adoption, particularly among customers seeking to consolidate toolsets and manage more complex environments. CEO Rick McConnell emphasized that AI is now contributing to three distinct growth areas: higher platform consumption, rising demand for AI observability capabilities, and direct monetization of agent usage. Is now the time to buy DT? Find out in our full research report (it’s free). Revenue: $554.5 million vs analyst estimates of $549.7 million (16.2% year-on-year growth, 0.9% beat) Adjusted EPS: $0.48 vs analyst estimates of $0.44 (8.2% beat) Adjusted Operating Income: $161.6 million vs analyst estimates of $153 million (29.1% margin, 5.7% beat) The company dropped its revenue guidance for the full year to $2.31 billion at the midpoint from $2.33 billion, a 0.6% decrease Management raised its full-year Adjusted EPS guidance to $1.98 at the midpoint, a 2.1% increase Operating Margin: 12.9%, in line with the same quarter last year Annual Recurring Revenue: $2.14 billion vs analyst estimates of $2.13 billion (17.2% year-on-year growth, in line) Billings: $418.3 million at quarter end, up 7.8% year on year Market Capitalization: $14.35 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Brent Thill (Jefferies) asked about the sources of new logo strength. CFO James Benson attributed it to investments in enterprise accounts and a trend toward platform consolidation, resulting in larger average deal sizes. Gray Powell (BTIG) questioned the sustainability of tailwinds like log monitoring and ARR growth. Benson said tailwinds remain strong and highlighted momentum across both new logos and expansion opportunities, especially with upcoming renewals. William Power (Baird) inquired about the drivers of autonomous operations adoption. CEO Rick McConnell explained that both traditional and AI workloads are increasingly using agentic automation, with direct monetization opportunities emerging as usage grows. Keith Bachman (BMO Capital Markets) asked about the upcoming renewal cohort and Bindplane’s impact. Benson stated that renewals are heavily weighted to the back half of the year and that Bindplane is exceeding expectations as an accelerant to log management growth. Fatima Boolani (Citi) probed on potential changes to on-demand consumption pricing. Benson clarified that no pricing changes are planned this year and any adjustments would be gradual and not materially impact current guidance. In the coming quarters, our analysts will closely watch (1) the pace of AI observability adoption and its impact on platform consumption, (2) the outcome of large renewal cohorts and the ability to drive upsell activity, and (3) continued momentum in log management and autonomous operations. Execution on expanding strategic account coverage and integration of recent acquisitions will also be important markers of Dynatrace’s progress. Dynatrace currently trades at $49.96, up from $45.71 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.