Dynatrace unveils AI-powered cloud operations solution for Azure

BOSTON - Software company Dynatrace (NYSE:DT) announced a new AI-powered cloud operations solution for Microsoft Azure, currently available in preview with broader release planned for early 2026. The company, which boasts impressive gross profit margins of 81.84% and a solid financial health rating according to InvestingPro, continues to expand its product offerings amid 18.5% revenue growth over the past year.

The solution aims to provide organizations with enhanced visibility into their Azure environments through several key features including comprehensive visibility across Azure services, automatic prevention of emerging risks, intelligent remediation of issues, and continuous optimization of cloud resources.

"By delivering a best-in-class solution that provides customers with complete visibility into their Azure environments, we are helping them move closer to fully autonomous operations," said Steve Tack, Chief Product Officer at Dynatrace, in a press release statement.

The new offering is designed to support organizations running workloads on various Azure services including Azure Kubernetes, AI Foundry services, Azure Virtual Machines, and Azure Functions.

Heather Deggans, Vice President of Americas SDC Sales at Microsoft, noted that the integration of Dynatrace's capabilities with Azure would help organizations "accelerate their cloud transformation, simplify operations, and achieve new levels of performance and reliability."

The announcement comes as Dynatrace showcases its platform at Microsoft Ignite, demonstrating how its technology supports Agentic and Generative AI initiatives in the Azure cloud. The company is inviting existing customers to register for early access to the preview.

Dynatrace specializes in observability solutions that help organizations analyze and manage complex digital ecosystems. The company's new cloud operations solution represents an expansion of its capabilities specifically tailored for Microsoft Azure environments.

In other recent news, Dynatrace reported its fiscal Q2 2026 earnings, surpassing Wall Street expectations with an earnings per share of $0.44, beating the forecast of $0.41. The company's revenue also exceeded predictions, reaching $494 million compared to the anticipated $487.3 million. Additionally, Dynatrace achieved a 16% growth in constant currency net new annual recurring revenue, outperforming the 1% growth from the same quarter last year. The company's annual recurring revenue and subscription revenue both exceeded consensus estimates by 1.3%.

Furthermore, Dynatrace announced a new integration with Microsoft Azure SRE Agent, becoming the first observability platform to integrate with Microsoft's AI-powered reliability assistant for Azure. This integration aims to enhance Dynatrace's AI-driven root cause analysis capabilities and provide remediation hints to reduce outages. In analyst news, Goldman Sachs lowered its price target for Dynatrace to $59 while maintaining a Buy rating. These developments reflect ongoing strategic moves and financial performance updates for Dynatrace.

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