revenue
123–125 $million
Q3 2027
official guidance
PAGERDUTY, INC.
Last · NYSE$13.58+0.26 (+1.95%)stale · yahoo · 65h ago
Market cap$1.07B78.6M sh
P/E · TTM6.7fwd 9.3 · eps 2.03
Beta0.96vs S&P 500
Div yield—annual · TTM
52w range
$5.70$16.91
Volume1.5Msession
| Revenue | $494.7M |
|---|---|
| Operating income | $32.0M |
| Net income | $185.5M |
| Free cash flow | $126.6M |
| Operating margin | 6.5% |
| Net margin | 37.5% |
| Return on equity | 75.1% |
| Period | TTM 2026-07-31 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
BuyHoldSell
Margin execution is improving, but growth recovery and AI monetization require evidence.
Hold. PagerDuty delivered better profitability and early retention stabilization, but the core business remains stalled:
Q2 revenue rose just 1% to $124.4 million, ARR reached $501 million, and DBNR improved to 98%. The 15% workforce reduction lifts FY27 non-GAAP operating-margin guidance to 25%-26%, but FY27 revenue guidance is still approximately flat, while the AI/usage-based platform remains largely unproven at scale.
Themes
- Revenue Stagnation
- Retention Stabilization
- Usage Based Pricing
- Pd Reliability Platform
- Ai Operations
- Workforce Restructuring
Near term
Q3 revenue guidance of $123 million-$125 million implies approximately flat year-over-year performance, making near-term growth acceleration unlikely.
The 15% headcount reduction should support margins, but restructuring charges of $5.5 million-$7.5 million will be concentrated in Q3 and Q4.
PD Reliability Platform general availability later this quarter is the key catalyst; investor focus should be on usage, expansion and ARR contribution rather than launch messaging.
DBNR at 98% and two consecutive quarters of improving gross retention need to continue before a durable recovery can be underwritten.
Longer term
The usage-based model could reduce exposure to seat compression and broaden adoption of AI features, but management did not quantify conversion economics, expansion rates or revenue contribution.
PagerDuty retains a potentially valuable position in incident management as AI-generated and agentic workloads increase operational complexity; the thesis depends on becoming a control plane for those workloads rather than merely adding AI features.
The company is targeting a 30% long-term non-GAAP operating margin, with FY27 guidance now at 25%-26%; reinvestment in sales and engineering must eventually produce renewed revenue growth.
Enterprise traction is encouraging: customers spending more than $100,000 annually rose by 24 sequentially to 884, but overall revenue growth has not yet reflected that momentum.
Red flags
Management acknowledged the turnaround is incomplete: John DiLullo said, "We still have a lot of work to do and not necessarily signaling that, that work is over at this point."
The AI narrative is supported mainly by product positioning and customer anecdotes; management did not disclose PD Reliability Platform ARR, usage growth by cohort, retention impact or material revenue contribution.
Cost savings are being used to raise margins while funding sales and engineering, but management declined to disclose gross restructuring savings or the amount being reinvested.
RPO was only $426 million, up $1 million year-over-year, underscoring limited contracted-growth momentum despite the AI opportunity.
Competitive Q&A produced no quantified evidence of improved win rates or shorter sales cycles; management attributed better deal velocity partly to lower idle-agent capacity and pent-up account usage.
Forward outlook
eps diluted
0.34–0.36 $per share
Q3 2027
official guidance
operating margin
26.5–27.5 pct
Q3 2027
official guidance
revenue
491.5–496.5 $million
FY 2027
official guidance
eps diluted
1.33–1.37 $per share
FY 2027
official guidance
operating margin
25–26 pct
FY 2027
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-03-12
- Sbc Revenue Elevated
- Accumulated Deficit High
Red flags
- Sbc Revenue Elevated — SBC/Revenue 19.9%
- Accumulated Deficit High — Accumulated deficit / equity 156%
Upcoming earnings
9:00 PM UTC+1
Period
Oct 2026
Est. EPS
$0.36
Est. revenue
124.1M
Earnings transcripts
- Motley Fool
PagerDuty (PD) Q2 2027 Earnings Call Transcript
PAGERDUTY, INC.
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Earnings call transcript
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Earnings call transcript
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