PagerDuty (NYSE:PD) Releases Earnings Results

PagerDuty (NYSE:PD) released its quarterly earnings results on Thursday. The company reported $0.32 EPS for the quarter, topping the consensus estimate of $0.24 by $0.08, FiscalAI reports. PagerDuty had a return on equity of 16.29% and a net margin of 35.30%.The business had revenue of $120.97 million for the quarter, compared to analysts’ expectations of $119.52 million. During the same quarter in the previous year, the firm posted $0.24 earnings per share. The company’s revenue was up 1.0% compared to the same quarter last year. PagerDuty updated its Q2 2027 guidance to 0.290-0.310 EPS.

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

• PagerDuty beat the top end of guidance in Q1, with revenue of $121 million and non-GAAP operating margin of 25%, while also posting its fourth straight quarter of GAAP profitability.
• The company’s usage-based Operations Cloud is gaining traction, with ARR on that model nearly doubling from Q4 to Q1 and usage-based products now representing nearly 10% of total ARR.
• Management said the new pricing and packaging should help drive growth, improve retention over time, and support the path toward a 30% non-GAAP operating margin target.
• Customer acquisition remained strong, with over 600 new customers added for the fifth consecutive quarter and total customers on the platform up 14% year over year.
• The company highlighted momentum in AI-native and large enterprise customers, citing new wins and expansions across industries as demand rises for real-time operations, automation, and resilience.

PagerDuty Price Performance

PD opened at $7.43 on Friday. The company has a fifty day simple moving average of $6.66 and a 200 day simple moving average of $9.43. The stock has a market cap of $631.48 million, a P/E ratio of 4.04, a P/E/G ratio of 3.19 and a beta of 0.78. The company has a quick ratio of 2.01, a current ratio of 2.01 and a debt-to-equity ratio of 1.56. PagerDuty has a 12 month low of $5.70 and a 12 month high of $18.00.

PagerDuty announced that its board has approved a share buyback plan on Thursday, May 28th that permits the company to repurchase $100.00 million in shares. This repurchase authorization permits the company to buy up to 16.4% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

PD has been the topic of a number of research reports. Weiss Ratings reiterated a “sell (d)” rating on shares of PagerDuty in a research report on Friday, May 22nd. William Blair restated a “market perform” rating on shares of PagerDuty in a research report on Friday, March 13th. Morgan Stanley set a $9.00 price objective on PagerDuty in a research note on Thursday, February 19th. Wall Street Zen cut PagerDuty from a “buy” rating to a “hold” rating in a research report on Monday. Finally, TD Cowen cut their target price on PagerDuty from $20.00 to $10.00 and set a “buy” rating on the stock in a report on Friday, March 13th. Three research analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average price target of $11.89.

More PagerDuty News

Here are the key news stories impacting PagerDuty this week:

• Positive Sentiment: PagerDuty beat Q1 expectations, reporting EPS of $0.32 versus $0.24 expected and revenue of $121.0 million versus $119.5 million expected. Management also issued Q2 guidance slightly above consensus, which supports the case for the stock being up on the day. PagerDuty Announces First Quarter Fiscal 2027 Financial Results
• Positive Sentiment: The board authorized a new $100 million share buyback, which may help support earnings per share and signals management believes the stock is undervalued. RTT News
• Neutral Sentiment: The company said it is expanding AI offerings and its Operations Cloud usage-based model, but investors are still waiting to see whether these initiatives can accelerate growth meaningfully. TipRanks article
• Negative Sentiment: Despite the earnings beat, the report showed weak underlying trends: revenue grew less than 1% year over year, ARR was flat, large-customer counts declined, and DBNRR fell below 100%, suggesting churn is outpacing expansion. Seeking Alpha article

Institutional Investors Weigh In On PagerDuty

Several hedge funds have recently bought and sold shares of PD. One68 Global Capital LLC raised its position in shares of PagerDuty by 80.0% in the fourth quarter. One68 Global Capital LLC now owns 18,000 shares of the company’s stock valued at $236,000 after purchasing an additional 8,000 shares during the period. Man Group plc acquired a new position in PagerDuty during the fourth quarter valued at approximately $229,000. Mercer Global Advisors Inc. ADV acquired a new position in shares of PagerDuty during the third quarter worth $210,000. Sei Investments Co. acquired a new stake in PagerDuty during the 3rd quarter worth approximately $218,000. Finally, Caxton Associates LLP acquired a new stake in PagerDuty in the second quarter valued at $186,000. 97.26% of the stock is currently owned by institutional investors and hedge funds.

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.