Dynatrace shares fell 14.7% after Q2 net new ARR was flat year over year, following 41% organic growth in Q1. Management attributed the slowdown to large enterprise deals shifting into the second half, but the sharp sequential deceleration—and reliance on those deals closing—likely disappointed investors.
- Total ARR grew 16%; total and subscription revenue each grew 17%. Non-GAAP operating margin was 32%.
- Platform consumption grew more than 20%; logs consumption grew well over 100%, and infrastructure monitoring reached more than $500 million in annualized consumption, growing about 30%.
- More than 1,100 customers used the public preview of Dynatrace agents for autonomous operations, up from 800 last quarter. AI customer cohorts consumed at more than twice the rate of other customers.
- The company said the shifted enterprise opportunities remain active and several have closed, while reiterating confidence in its FY2027 guidance.
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