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Investing.com - BMO Capital has lowered its price target on Dynatrace Inc. (NYSE:DT) to $62.00 from $63.00 while maintaining an Outperform rating on the software company’s stock. According to InvestingPro data, the company maintains a "GOOD" financial health score, with impressive gross profit margins of 82%.
The firm cited Dynatrace’s solid results in the recent earnings report, highlighting healthy net new Annual Recurring Revenue (ARR) growth of $51 million compared to $46 million in the same quarter last year.
BMO Capital noted that Dynatrace achieved impressive free cash flow margins of 55%, demonstrating strong operational efficiency despite new logo additions being slightly below expectations.
The company’s fiscal year 2026 guidance remained essentially unchanged, providing stability in its forward outlook despite the minor price target reduction.
BMO Capital projects modest upside potential for both ARR and subscription revenues as the fiscal year progresses, with the analyst firm indicating that Dynatrace’s current valuation supports its maintained Outperform rating.
In other recent news, Dynatrace Inc. reported its financial results for the first quarter of fiscal year 2026, surpassing both earnings and revenue forecasts. The company posted an earnings per share of $0.42, exceeding the forecast of $0.38. Revenue reached $477.3 million, topping expectations of $466.99 million. Guggenheim raised its price target for Dynatrace to $68.00, maintaining a Buy rating, citing strong quarterly performance and impressive subscription revenue growth. Stifel also increased its price target to $63.00, highlighting the company’s constant currency annual recurring revenue growth of 16.5%, which was above expectations. Analysts noted that the company’s focus on strategic accounts is driving robust expansion bookings. These recent developments reflect positively on Dynatrace’s financial health and market position.
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