16 Best Mid Cap Growth Stocks To Buy Now

6. Dynatrace Inc. (NYSE:DT)

Market Capitalization as of September 13: $15.12 billion

Number of Hedge Fund Holders: 49

Dynatrace Inc. (NYSE:DT) is a global technology company that provides a software observability platform based on AI and automation, helping businesses gain visibility into the performance of their applications and infrastructure, identify and resolve issues quickly, and optimize their IT operations.

Recent industry-wide outages have impacted billions of end users globally, making observability software mandatory in helping organizations minimize impact. The company’s revenue in FQ1 2025 was $399.22 million, up 19.93% from the same quarter of the prior year. ARR grew 20% year-over-year, while subscription revenue increased 21%. It also added 162 new logos to the Dynatrace platform, up 5% from the year-ago quarter.

It excels with its observability platform, using the Grail data store for real-time analytics and AI for quick incident resolution. Its recent innovations, like Site Reliability Guardian, enhance customer value.

The company has supported over 4,000 organizations in their digital transformation efforts. As one of only 8% of public software companies to surpass $1 billion in revenue, it has achieved cumulative revenue exceeding $5 billion and generated over $1 billion in free cash flow in the past 5 years.

As the observability market expands, driven by cloud migration and AI, the company’s end-to-end platform is becoming increasingly essential for organizations seeking visibility and resilience. With a total addressable market of $50 billion, it is well-positioned to capture growth opportunities and drive significant value.

ClearBridge SMID Cap Growth Strategy stated the following regarding Dynatrace, Inc. (NYSE:DT) in its first quarter 2024 investor letter:

“Several of our other IT holdings faced idiosyncratic headwinds during the period, resulting in three of our five worst-performing holdings being from the sector. This included security platform operator Dynatrace, Inc. (NYSE:DT), whose stock price slid despite beating third-quarter earnings estimates as management guided full-year annual recurring revenue lower due to larger and more complex deals taking longer to close.”