PagerDuty (NYSE:PD) Issues Earnings Results

PagerDuty (NYSE:PD) announced its quarterly earnings results on Thursday. The company reported $0.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.24 by $0.05, FiscalAI reports. The firm had revenue of $124.79 million during the quarter, compared to analysts’ expectations of $122.96 million. PagerDuty had a net margin of 31.12% and a return on equity of 10.27%. The company’s revenue was up 2.7% on a year-over-year basis. During the same period in the prior year, the company posted $0.22 EPS. PagerDuty updated its Q1 2027 guidance to 0.230-0.250 EPS and its FY 2027 guidance to 1.230-1.280 EPS.

Here are the key takeaways from PagerDuty’s conference call:

• PagerDuty reported its first full‑year GAAP profitability (Q4 GAAP net income $11M) and expanded non‑GAAP operating margin to 24% in Q4, while stating a clear path toward a long‑term 30% non‑GAAP operating margin (full‑year GAAP net income included a one‑time $169M tax benefit).
• Revenue and ARR stabilized with Q4 revenue of $125M (+3% YoY) and ending ARR of approximately $499 million, while new and expansion bookings accelerated (Q4 bookings +6% YoY, +37% sequential) and growth concentrated in larger enterprise accounts.
• Management is driving a shift to flex consumption pricing and AI agent products, pointing to multiple large multi‑year deals (e.g., $4.5M and $2.7M wins) and new partnerships (Anthropic, Cursor, LangChain) as levers for higher consumption and expansion.
• Retention and seat compression remain headwinds — dollar‑based net retention fell to 98% due to lower gross retention and modest churn in the $100K ARR cohort, and management set a conservative FY27 revenue guide with the midpoint essentially flat YoY.
• Strong balance sheet and capital returns — $470M in cash and investments, ~10M shares repurchased in FY26 under a $200M plan (≈$63M remaining), and management expects to sustain GAAP profitability while funding AI/product investments.

PagerDuty Stock Performance

PD stock opened at $7.25 on Friday. The firm has a market cap of $665.41 million, a PE ratio of 4.53, a price-to-earnings-growth ratio of 1.84 and a beta of 0.73. The company has a current ratio of 2.37, a quick ratio of 2.37 and a debt-to-equity ratio of 1.23. The stock has a 50-day moving average price of $9.19 and a 200-day moving average price of $13.00. PagerDuty has a 1-year low of $6.18 and a 1-year high of $19.70.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on PD shares. Craig Hallum downgraded PagerDuty from a “buy” rating to a “hold” rating and decreased their price objective for the company from $20.00 to $15.00 in a report on Wednesday, November 26th. Wall Street Zen upgraded PagerDuty from a “hold” rating to a “buy” rating in a research report on Sunday, January 25th. Weiss Ratings reissued a “sell (d+)” rating on shares of PagerDuty in a research note on Monday, December 29th. Zacks Research downgraded PagerDuty from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 26th. Finally, Royal Bank Of Canada reaffirmed a “sector perform” rating on shares of PagerDuty in a research note on Wednesday, February 11th. Three research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, PagerDuty presently has an average rating of “Hold” and an average target price of $16.00.

Trending Headlines about PagerDuty

Here are the key news stories impacting PagerDuty this week:

• Positive Sentiment: Q4 EPS beat — PagerDuty reported $0.29 EPS vs. consensus $0.24, topping estimates and showing year‑over‑year improvement. PagerDuty (PD) Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: Aggressive EPS guidance — management set FY2027 EPS at $1.23–$1.28 (well above the prior consensus ~$0.85) and Q1 EPS at $0.23–$0.25 (above Q1 estimates), which supports a more profitable outlook if achieved.
• Positive Sentiment: Product momentum — PagerDuty expanded its AI ecosystem and pushed a Spring 2026 platform release, highlighting strategic progress in AI‑first operations that could drive longer‑term growth/retention. PagerDuty Expands AI Ecosystem Spring 2026 Release
• Neutral Sentiment: Official release — company posted full results and commentary noting stabilized retention and margin expansion for FY2026; that context tempers both the good and bad in the numbers. Press Release: Q4 & FY2026 Results
• Negative Sentiment: Revenue guidance and quarterly revenue uncertainty — FY and Q1 revenue guides ($488.5M–$496.5M FY; $118M–$120M Q1) came in below street revenue expectations, creating concern that top‑line growth will lag even if profitability improves.
• Negative Sentiment: Mixed / weaker operating metrics reported by some datapoints — a third‑party summary flagged a revenue miss vs. one consensus, sharply lower operating cash flow year‑over‑year and a drop in cash on hand; those liquidity and cash‑flow notes can pressure the multiple. PagerDuty Stock Falls on Q4 2026 Earnings
• Negative Sentiment: Insider / institutional moves — recent insider sale activity and large institutional position reductions flagged in filings amplify investor caution after the quarter.

Insider Activity at PagerDuty

In related news, Director Dan Alexandru Solomon sold 266,667 shares of the firm’s stock in a transaction that occurred on Tuesday, December 30th. The stock was sold at an average price of $13.35, for a total transaction of $3,560,004.45. Following the completion of the sale, the director owned 2,389,665 shares of the company’s stock, valued at $31,902,027.75. This trade represents a 10.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 8.00% of the stock is currently owned by insiders.

Hedge Funds Weigh In On PagerDuty

Institutional investors and hedge funds have recently modified their holdings of the business. Kestra Advisory Services LLC bought a new stake in shares of PagerDuty in the 4th quarter valued at $68,000. Los Angeles Capital Management LLC bought a new position in PagerDuty during the fourth quarter worth $114,000. Inceptionr LLC bought a new stake in PagerDuty in the fourth quarter valued at $132,000. State of Tennessee Department of Treasury acquired a new position in shares of PagerDuty during the second quarter valued at about $160,000. Finally, Numerai GP LLC bought a new position in shares of PagerDuty during the 4th quarter worth about $161,000. 97.26% of the stock is currently owned by institutional investors.

About PagerDuty

PagerDuty, Inc engages in the operation of a digital operations management platform in the United States and internationally. The company’s digital operations management platform collects data and digital signals from virtually any software-enabled system or device and leverage machine learning to correlate, process, and predict opportunities and issues. Its platform includes PagerDuty Incident Management that provides a real-time view across the status of a digital service while incorporating noise reduction to remove false positives; AIOps that applies machine learning to correlate and automate the identification of incidents from billions of events; Process Automation offers centralized design time and run time environment for orchestrating automated workflows that span across departments, technologies, and networks; Customer Service Operations, which is offered to orchestrate, automate, and scale responses to customer impacting issues.