Is AI to Blame for the Software Slump at Dynatrace (NYSE:DT), Gartner (NYSE:IT), Thomson Reuters (NASDAQ:TRI) and Amdocs (NASDAQ:DOX)?

Vinay Lochav

05 November 2026 12:49 AM AEDT

Is AI to Blame for the Software Slump at Dynatrace (NYSE:DT), Gartner (NYSE:IT), Thomson Reuters (NASDAQ:TRI) and Amdocs (NASDAQ:DOX)?

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Key Highlights

Dynatrace (NYSE:DT) fell 14.66% on November 3, 2026, after non-GAAP Earnings guidance was cut to USD 1.88 to USD 1.90 from USD 1.97 to USD 1.99, even as Revenue guidance rose.
Gartner (NYSE:IT) fell about 13% after adjusted earnings of USD 3.59 a share, up 30.1%, as contract value grew only 2.5% to USD 5.3 billion and revenue fell 1.3% as reported.
Thomson Reuters (NASDAQ:TRI) fell 9.87% after adjusted earnings of USD 0.81 a share came in below a published USD 0.83 estimate, on revenue of USD 1,833 million, up 10%.
Amdocs (NASDAQ:DOX) guided fiscal 2027 revenue down 14.3% to 17.9% as reported, and an after-hours quote of USD 35.80 was about 42.7% below the USD 62.47 close on simple arithmetic.

Dynatrace (NYSE:DT): An Acquisition Reshapes the Margin

Dynatrace (NYSE:DT) reported fiscal second-quarter 2027 results at 6:30 a.m. ET on November 3, 2026. Revenue was USD 579.9 million, up 17%, annual Recurring Revenue was USD 2,207.2 million, up 16%, and non-GAAP earnings were USD 0.54 a share. Fiscal 2027 revenue guidance rose to USD 2,330 million to USD 2,340 million, but non-GAAP earnings guidance fell, and the non-GAAP operating Margin guide dropped to 28.0% to 28.25% from 29.5% to 29.75%, with about 175 basis points of dilution from the Arize acquisition, which closed on October 1. The shares closed down 14.66%. The company repurchased 5.2 million shares for USD 246 million at an average of USD 47.38 and added a USD 1 billion authorisation. An acquired company that is still growing and spending can dilute margins longer than expected, and annual recurring revenue growth of 16% is solid but slower than in earlier years. AI tools could also change how customers buy monitoring software, and the company gave no third-quarter annual recurring revenue guidance. Third-quarter revenue guidance of USD 591 million to USD 596 million and earnings guidance of USD 0.44 to USD 0.45 is a lower earnings step than the second quarter.

Gartner (NYSE:IT): Earnings Up, Contract Value Slow

Gartner (NYSE:IT) reported third-quarter 2026 results on November 3. Adjusted earnings were USD 3.59 a share, up 30.1% from USD 2.76 and above a published consensus near USD 2.84. Contract value, the annualised value of subscription contracts, reached USD 5.3 billion, up 2.5%, and total revenue of USD 1,505 million was down 1.3% as reported, with adjusted revenue up 2.4%. Published coverage says Gartner raised 2026 guidance, with adjusted earnings at or above USD 14.65, but the release excerpt read gave no numbers. The shares fell 13.2% to 13.9% depending on the timestamp, and published coverage tied the fall to fear of cheaper AI services, which is market commentary and not a company statement. Contract value growth excluding United States federal Business was 2.8%, still short of the 4% exit rate management wants. Repurchases of USD 138 million in the quarter are smaller than the recent pace, and Buybacks cannot lift earnings indefinitely. Investors will watch contract value growth, retention and the pace of an analyst hiring programme that will raise costs.

Thomson Reuters (NASDAQ:TRI): A Cent Short, Twice in Three Months

Thomson Reuters (NASDAQ:TRI) reported third-quarter 2026 results on November 3. Revenue was USD 1,833 million, up 10%, with organic growth also at 10%, and adjusted earnings of USD 0.81 a share were up from USD 0.71, about 14% higher on simple arithmetic, but below a single published estimate of USD 0.83. Adjusted EBITDA margin was 35.5% against 35.8%. The 2026 outlook calls for total revenue growth of about 9.5%, organic growth of 8.5% to 9.0% and an adjusted EBITDA margin of about 39%, with guidance for its three largest segments unchanged from August 5. The shares closed down 9.87%. The company has now seen share price falls of about 9% twice in three months, which can reset sentiment for some time. The risk is that AI tools from larger technology companies compress Demand or pricing for legal and tax software, the company's core professional markets, and transactional AI licensing revenue may not repeat. Investors will watch the CoCounsel product's adoption and the margin path toward 39%. The prior quarter was stronger per share, with adjusted earnings of USD 0.99 on revenue of USD 1.954 billion, and a third-quarter margin near 36% was guided to include severance costs.

Amdocs (NASDAQ:DOX): A Customer Dispute, Not an AI Story

Amdocs (NASDAQ:DOX) released fourth-quarter fiscal 2026 results on November 3, 2026, after the close. Quarterly revenue of USD 1.194 billion rose 3.8%, and fiscal 2026 revenue was USD 4.697 billion, up 3.6%, with non-GAAP earnings of USD 7.41 a share. The outlook is the story: fiscal 2027 reported revenue is guided down 14.3% to 17.9%, or down 7% to 11% on a pro forma constant-currency basis after about USD 360 million of revenue exits and a media divestiture, and non-GAAP earnings down 26% to 30%. Amdocs and T-Mobile have each sent notices alleging material breach, and the outlook includes a scenario in which either party terminates the agreements. The USD 35.80 figure is an after-hours quote on thin volume, not a closing price, and some coverage cites a drop near 44%. The company raised its Dividend by 3% to USD 0.586 per share, subject to approval in January 2027, and outlined a return to mid-single-digit growth in fiscal 2028, a company outlook and not a forecast. About USD 500 million remains under the repurchase authorisation, and the company repurchased USD 511 million of stock in fiscal 2026. Free Cash Flow is guided at USD 440 million to USD 500 million before restructuring payments, and risks include the arbitration outcome and further customer losses.

Where Things Stand

These four stocks fell for different reasons, though markets grouped them. Dynatrace cut an earnings guide after an acquisition, Gartner showed slow contract value growth, Thomson Reuters missed a published estimate by a cent, and Amdocs guided a steep revenue decline tied to a contract dispute. Only Gartner and Thomson Reuters carry an AI-disruption narrative, and that is commentary, not company guidance. Dynatrace (NYSE:DT) has a company-specific cause. Amdocs (NASDAQ:DOX) has one too. The balance of evidence is that each report has its own cause. The next catalysts are the Amdocs arbitration, Dynatrace's third-quarter earnings step and contract value at Gartner. Large one-day falls can overshoot or continue.

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