PagerDuty (NYSE:PD) Updates Q2 2027 Earnings Guidance

PagerDuty (NYSE:PD) issued an update on its second quarter 2027 earnings guidance on Thursday morning. The company provided earnings per share guidance of 0.290-0.310 for the period, compared to the consensus earnings per share estimate of 0.280. The company issued revenue guidance of $122.0 million-$124.0 million, compared to the consensus revenue estimate of $122.8 million.

PagerDuty Stock Performance

Shares of PD opened at $7.43 on Friday. The company has a debt-to-equity ratio of 1.56, a current ratio of 2.01 and a quick ratio of 2.01. PagerDuty has a one year low of $5.70 and a one year high of $18.00. The firm has a market capitalization of $631.48 million, a P/E ratio of 4.04, a PEG ratio of 3.19 and a beta of 0.78. The business has a fifty day moving average of $6.66 and a 200 day moving average of $9.43.

PagerDuty (NYSE:PD) last issued its quarterly earnings results on Thursday, May 28th. The company reported $0.32 earnings per share for the quarter, topping the consensus estimate of $0.24 by $0.08. The business had revenue of $120.97 million for the quarter, compared to analysts’ expectations of $119.52 million. PagerDuty had a net margin of 35.30% and a return on equity of 16.29%. The company’s revenue was up 1.0% compared to the same quarter last year. During the same quarter last year, the company posted $0.24 EPS. PagerDuty has set its Q2 2027 guidance at 0.290-0.310 EPS. As a group, sell-side analysts anticipate that PagerDuty will post 0.34 EPS for the current year.

PagerDuty announced that its board has initiated a stock buyback plan on Thursday, May 28th that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the company to buy up to 16.4% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its stock is undervalued.

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. Truist Financial cut their price target on PagerDuty from $12.00 to $9.00 and set a “buy” rating for the company in a report on Friday, March 13th. Wall Street Zen lowered PagerDuty from a “buy” rating to a “hold” rating in a report on Monday. Morgan Stanley set a $9.00 price target on PagerDuty in a report on Thursday, February 19th. William Blair reissued a “market perform” rating on shares of PagerDuty in a report on Friday, March 13th. Finally, Canaccord Genuity Group cut their price target on PagerDuty from $19.00 to $9.00 and set a “buy” rating for the company in a report on Friday, March 13th. Three research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $11.89.

PagerDuty News Roundup

Here are the key news stories impacting PagerDuty this week:

• Positive Sentiment: PagerDuty topped Q1 expectations with EPS of $0.32 versus $0.24 estimated and revenue of $120.97 million versus $119.52 million expected, helping improve sentiment around the stock. PagerDuty Announces First Quarter Fiscal 2027 Financial Results
• Positive Sentiment: The board authorized a $100 million buyback, a signal management believes the shares are undervalued and a potential tailwind for per-share results. PagerDuty share buyback announcement
• Positive Sentiment: PagerDuty raised Q2 fiscal 2027 guidance, with EPS guidance of $0.29-$0.31 and revenue guidance of $122 million-$124 million, both slightly above consensus. PagerDuty earnings report and transcript
• Neutral Sentiment: Management said the company is executing on its AI-first operations strategy, including expanded AI offerings and a usage-based Operations Cloud model, but the near-term financial impact remains unclear. PagerDuty Announces First Quarter Fiscal 2027 Financial Results
• Negative Sentiment: Despite the beat, underlying growth was weak: revenue rose less than 1% year over year, ARR was flat, large-customer counts declined, and DBNRR slipped below 100%, suggesting churn is outpacing expansion. PagerDuty Q1 Earnings: Still Struggling

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Kestra Advisory Services LLC purchased a new position in PagerDuty in the 4th quarter worth approximately $68,000. Los Angeles Capital Management LLC purchased a new position in PagerDuty in the 4th quarter worth approximately $114,000. One68 Global Capital LLC purchased a new position in PagerDuty in the 3rd quarter worth approximately $165,000. Inceptionr LLC bought a new stake in PagerDuty in the 4th quarter valued at $132,000. Finally, State of Tennessee Department of Treasury bought a new stake in PagerDuty in the 2nd quarter valued at $160,000. 97.26% of the stock is owned by hedge funds and other 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.