DA Davidson Reaffirms Buy on Dynatrace (DT) After Solid Q3

Rizwan Siddiqui

Fri, February 13, 2026 at 12:39 AM GMT+9 2 min read

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Dynatrace Inc. (NYSE:DT) is among the best machine learning stocks to buy according to analysts. Following the company’s Q3 2026 results (FY ends in March), DA Davidson analyst Gil Luria cut DT’s price target from $65 to $50 but reaffirmed his Buy rating, according to a February 10 report by The Fly. The analyst said the company’s quarterly results were strong and that, due to end-to-end observability deals, it reported better-than-expected net new annual recurring revenue (ARR).

Luria also appeared impressed by Dynatrace Inc.’s (NYSE:DT) log management product and go-to-market changes, which, in his view, are not only helping the company gain market share but also driving strong pipeline growth.

On February 9, Dynatrace Inc. (NYSE:DT) reported an 18% growth in its Q3 revenue of $515 million, driven by $493 million (+18% year over year) in Subscription revenue. While total ARR grew 20% to $1.97 billion, the adjusted EPS came in at $0.44, ahead of the consensus at $0.41. Encouragingly, the company’s execution remains strong: it closed 12 deals exceeding $1 million in ARR in the quarter and announced a new $1 billion share repurchase program after nearly completing its earlier $500 million program.

DA Davidson Reaffirms Buy on Dynatrace (DT) After Solid Q3

On the results, Rick McConnell, CEO of Dynatrace, highlighted the company’s increasing traction with enterprises and stated:

Our third quarter results surpassed the high end of our guidance across all top-line growth and profitability metrics. Notably, we’ve generated double-digit net new ARR growth for three consecutive quarters, which reflects the growing number of enterprises adopting Dynatrace as their end-to-end observability platform.

Dynatrace Inc. (NYSE:DT) is a U.S.-based software company that provides AI-powered observability, application performance monitoring, and security solutions. The company employs machine learning to automatically monitor applications, networks, and cloud systems.

While we acknowledge the potential of DT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT:  12 Best Software Infrastructure Stocks to Buy According to Hedge Funds and Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy.

Disclosure: None. This article is originally published at Insider Monkey.

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