Dynatrace earns a reiterated buy rating as ARR growth stabilizes and deal quality improves, signaling healthier fundamentals.
Q3 2026 ARR rose ~20% y/y with net new ARR turning positive, driven by larger enterprise deals and strong partner execution.
Partner-led upmarket strategy accelerates platform adoption, enhancing growth visibility and predictability as standardized deployments scale.
Logs emerges as DT’s fastest-growing product, supporting the thesis for mid-20s revenue growth and multiple expansion if momentum persists.
Luis Alvarez/DigitalVision via Getty Images
Investment summary
My previous investment thought on Dynatrace (DT) was a buy rating because the setup had gotten attractive given the successful upmarket penetration and GSI partnership. Q3 2026 shows ARR stabilizing, net new ARR turning positive y/y, and enterprise
I focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the medium to long-term. Ultimately, I aim to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential.
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