Dynatrace and ServiceNow partner to advance autonomous IT operations

BOSTON/SANTA CLARA - Dynatrace (NYSE:DT), a technology leader with a market capitalization of $15.17 billion and impressive revenue growth of 18.7% over the last twelve months, and ServiceNow (NYSE:NOW) announced Monday a multi-year strategic collaboration aimed at advancing autonomous IT operations and scaling intelligent automation for enterprise customers.

The partnership will combine Dynatrace’s AI-powered observability platform with ServiceNow’s AI platform to enable more proactive and intelligent operations for organizations investing in agentic AI to improve operational efficiency. According to InvestingPro data, Dynatrace maintains strong financial health with an impressive gross profit margin of 81.94%, positioning it well for this strategic initiative. For deeper insights into Dynatrace’s financial metrics and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

Under the agreement, Dynatrace will deploy ServiceNow for Enterprise Service Management, HR Service Delivery, and Asset Management. Meanwhile, ServiceNow will implement Dynatrace’s observability platform to support its digital operations. Based on InvestingPro’s Fair Value analysis, Dynatrace currently appears undervalued, suggesting potential upside for investors interested in the company’s growth trajectory.

"Autonomous IT is the future, and our collaboration with Dynatrace is about accelerating Zero Outage outcomes for enterprises today," said Rahul Tripathi, group vice president and general manager, ITSM and ITOM at ServiceNow.

Steve Tack, chief product officer at Dynatrace, stated that the partnership aims to "turn real-time observability into trustworthy, autonomous action across the software delivery lifecycle."

The collaboration focuses on enabling enterprises to anticipate issues, coordinate remediation, and continuously optimize services by combining deterministic and agentic AI capabilities from both companies. With its robust financial position and proven track record of profitability, Dynatrace is well-positioned to deliver on these strategic initiatives.

The partnership brings together Dynatrace’s capabilities in proactive root cause analysis, prediction, and automated remediation across cloud environments with ServiceNow’s AI agents and AIOps features that streamline IT service and operations management.

According to the press release statement, the companies will use insights from their respective deployments to inform ongoing enhancements to integrations and improve the overall customer experience.

In other recent news, Dynatrace has been the focus of several analyst reports and company announcements. TD Cowen reiterated its Buy rating for Dynatrace, setting a price target of $65, and expects the company to exceed earnings expectations while slightly raising its annual recurring revenue guidance. Meanwhile, BMO Capital adjusted its price target to $56, citing modest upside in annual recurring revenue for the upcoming quarter. KeyBanc maintained an Overweight rating, projecting a 44% upside, driven by favorable macroeconomic trends and other catalysts.

In addition to analyst activity, Dynatrace achieved a significant milestone by earning the AWS Generative AI Competency, which highlights its capabilities in monitoring AI applications on AWS infrastructure. The company also announced its participation in the GitHub MCP Registry, which aims to enhance developer workflows by providing real-time insights into application performance and security. These developments reflect Dynatrace’s ongoing efforts to expand its technological capabilities and partnerships.

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