Dynatrace's Q2 Beats Clouded by Deal Slippage, Wedbush Says

11:35 AM EST, 11/04/2026 (MT Newswires) -- Dynatrace's (DT) fiscal Q2 beats will be overshadowed by a slowdown in annual recurring revenue growth and lowered fiscal 2027 margin guidance, Wedbush said in a Wednesday note. Net new annual recurring revenue was recorded at $70 million, down from $82 million in the prior period, as some enterprise deals slipped into H2, the report said. The company attributed a high-single-digit million shortfall to large, complex deals shifting into the second half, with several closing in October, the note said. "We view the slip as timing for now, but larger deal sizes are also making the NNARR line more volatile from quarter to quarter," the report said. The note said the firm needs to deliver organic NNARR growth, proof that logs and AI observability consumption is converting into new ARR, and Arize tracking toward its $40 million target. Wedbush kept its neutral rating while lowering its price target to $50 from $54. Price: 45.56, Change: -1.48, Percent Change: -3.14