Dynatrace ships a verified Cursor plugin before November 3 earnings as Datadog grows twice as fast
A verified Cursor plugin puts Dynatrace's production telemetry and root-cause analysis where AI agents write code, the company's second agent-distribution play this month, days before a fiscal Q2 report against a rival growing twice as fast.
Vincent Jiang · 2 min read
Dynatrace−0.44% — Dynatrace, down 0.44 percent today, the observability platform that tells enterprises why their software broke, published a verified plugin this week for Cursor, the AI-native code editor from Anysphere$30B — Anysphere, private, latest valuation $30B. The plugin routes Dynatrace's production telemetry into the editor through MCP, the Model Context Protocol that connects AI assistants to outside data: Grail holds the data, Smartscape maps the service dependencies, and Dynatrace Intelligence adds causal root-cause analysis 1.
A developer can ask in Cursor why a service degraded after a deploy, or whether a listed CVE actually runs on workloads Dynatrace monitors, without leaving the workspace 1.
The attach play behind a marketplace listing
The bet is on attach. As AI agents multiply code changes, someone has to watch what those agents ship, and Dynatrace wants to be the production-truth layer they consult, which protects consumption revenue. The blog itself calls Dynatrace a launch partner in a "SpaceX+1.87% — SpaceX, up 1.87 percent today Super Intelligence Partner Network," but no roster or independent report in our sources names Dynatrace as a member, so treat that billing as the company's own claim 1.
The Cursor listing is the second agent move this month: as we reported last week, Dynatrace signed as a launch partner for Cognition's Devin Oncall, the incident-fixing agent, feeding it root-cause data on October 15 6.
The scoreboard Datadog owns
The complication is the scoreboard. Datadog+0.34% — Datadog, up 0.34 percent today, the larger rival in monitoring, grew Q2 revenue 36% to $1.12 billion against Dynatrace's 16% to $554.55 million, and the market paid for it: Datadog closed at $269.65 on October 23, up 98% this year, while Dynatrace closed at $64.05, up 47.78% 4 3 5. Dynatrace carries a trailing price-to-earnings ratio of 128, and the stock trades at $64.05 against an average analyst target of $63.94, meaning Wall Street already pays full price for the agent strategy 3 5.
Datadog grew revenue twice as fast as Dynatrace last quarter
- Quarterly revenue growth, year over year
- Estimate
Data
| Quarterly revenue growth, year over year | |
|---|---|
| Datadog Q2 FY26 | 36% y/y |
| Dynatrace Q1 FY27 | 16.3% y/y |
| Dynatrace Q2 FY27 (cons.) (estimate) | 15% y/y |
The upgrades have been real, though: BofA lifted its target to $78 from $65 on October 23 citing higher infrastructure-software demand, UBS to $80 from $74, and Oppenheimer to $71 from $60 a month earlier 5 3.
Four firms raised Dynatrace targets this month, all above the stock price
- From
- To
Data
| From | To | Change | |
|---|---|---|---|
| BofA | $65 | $78 | +20.0% |
| UBS | $74 | $80 | +8.1% |
| RBC | $59 | $73 | +23.7% |
| Oppenheimer | $60 | $71 | +18.3% |
The tell on November 3
Dynatrace reports fiscal Q2 on November 3 before the open, with consensus at $568.04 million revenue and $0.4906 EPS 2. The tell is whether AI-agent attach shows up in consumption and whether revenue clears the consensus; a day later Datadog reports Q3 on November 4, with its reported near-$4 billion bid for cloud-security startup Upwind hanging over the call 4. Distribution is Dynatrace's answer to a faster rival, and the fiscal Q2 print is where that answer gets tested 4.
Get Platforms by email, free
The cloud, data and developer software AI is built on. In our daily email, every weekday.
