Dynatrace Falls Despite Q1 Beat as Outlook Signals Slower Growth for DT

Dynatrace (NYSE: DT) shares fell 9.4% to $35.90 on May 13, 2026, after the cloud observability software company reported first-quarter calendar 2026 results above Wall Street estimates but issued mixed guidance. Revenue rose 19.4% from a year earlier to $531.7 million, beating analyst expectations by 2.1%. Adjusted earnings were 41 cents a share, 5.4% above consensus. Dynatrace projected second-quarter revenue of about $549 million, roughly in line with estimates, while its next-quarter earnings outlook was slightly below expectations. Annual recurring revenue reached $2.05 billion, with growth averaging 18.5% over the past four quarters. The company’s revenue has grown at a 23.5% compound annual rate over five years, though growth slowed to an annualized 18.8% over the past two years. Analysts expect revenue to rise 14.3% over the next 12 months, signaling further deceleration.