PagerDuty (NYSE:PD) Releases Q3 2027 Earnings Guidance

PagerDuty (NYSE:PD) updated its third quarter 2027 earnings guidance on Thursday. The company provided earnings per share guidance of 0.340-0.360 for the period, compared to the consensus earnings per share estimate of 0.310. The company issued revenue guidance of $123.0 million-$125.0 million, compared to the consensus revenue estimate of $124.2 million. PagerDuty also updated its FY 2027 guidance to 1.330-1.370 EPS.

PagerDuty Stock Performance

NYSE:PD opened at $12.66 on Friday. PagerDuty has a twelve month low of $5.70 and a twelve month high of $17.29. The company has a quick ratio of 1.95, a current ratio of 1.95 and a debt-to-equity ratio of 1.83. The firm has a market capitalization of $976.26 million, a P/E ratio of 6.21, a P/E/G ratio of 3.13 and a beta of 0.93. The company has a fifty day moving average of $10.57 and a 200-day moving average of $8.40.

PagerDuty (NYSE:PD) last issued its earnings results on Thursday, August 27th. The company reported $0.32 EPS for the quarter, beating the consensus estimate of $0.31 by $0.01. PagerDuty had a return on equity of 18.20% and a net margin of 38.60%.The company had revenue of $124.44 million during the quarter, compared to the consensus estimate of $123.27 million. During the same period last year, the business posted $0.30 EPS. The firm’s revenue for the quarter was up .8% compared to the same quarter last year. PagerDuty has set its FY 2027 guidance at 1.330-1.370 EPS and its Q3 2027 guidance at 0.340-0.360 EPS. As a group, sell-side analysts anticipate that PagerDuty will post 0.58 EPS for the current year.

PagerDuty announced that its board has approved a stock repurchase program on Thursday, May 28th that allows the company to buyback $100.00 million in shares. This buyback authorization allows the company to repurchase up to 16.4% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s board of directors believes its stock is undervalued.

Analysts Set New Price Targets

Several brokerages recently weighed in on PD. Weiss Ratings raised shares of PagerDuty from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, August 21st. Wall Street Zen cut shares of PagerDuty from a “buy” rating to a “hold” rating in a research note on Saturday, July 25th. UBS Group set a $13.50 price objective on PagerDuty in a report on Wednesday. Morgan Stanley lowered PagerDuty from an “equal weight” rating to an “underweight” rating and cut their price target for the stock from $10.00 to $9.00 in a report on Tuesday, July 21st. Finally, Truist Financial boosted their price objective on shares of PagerDuty from $11.00 to $13.00 and gave the company a “buy” rating in a research note on Thursday, August 20th. Three research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $12.28.

PagerDuty News Roundup

Here are the key news stories impacting PagerDuty this week:

• Positive Sentiment: Q2 results exceeded expectations: PagerDuty reported adjusted earnings of $0.32 per share versus the $0.31 consensus estimate, while revenue of $124.44 million surpassed forecasts of $123.27 million. Revenue increased 0.8% year over year, and the company generated $33 million in free cash flow. PagerDuty Announces Second Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Profit outlook was raised above analyst expectations: PagerDuty guided to fiscal 2027 EPS of $1.33-$1.37, compared with consensus of $1.17. Third-quarter EPS guidance of $0.34-$0.36 also exceeded the $0.31 consensus estimate. Full-year revenue guidance of $491.5-$496.5 million was broadly in line with the $493.2 million consensus, suggesting the primary upside is coming from cost control and profitability. PagerDuty forecasts Q3 FY2027 operating margin
• Positive Sentiment: Operating momentum showed some improvement: Management said annual recurring revenue surpassed $500 million, while customer growth accelerated. These metrics support the company’s strategy of expanding AI-first operations-management offerings, although overall revenue growth remains modest. PagerDuty sales and customer growth report
• Negative Sentiment: PagerDuty is cutting approximately 15% of its workforce: The restructuring could weigh on employee execution and signal continued pressure to align expenses with slower top-line growth. However, management expects the actions to help produce a third-quarter operating margin of 26.5%-27.5% and improve profitable growth. PagerDuty to cut about 15% of workforce

Hedge Funds Weigh In On PagerDuty

Hedge funds have recently added to or reduced their stakes in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of PagerDuty by 1.3% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 51,601 shares of the company’s stock valued at $943,000 after purchasing an additional 671 shares in the last quarter. California State Teachers Retirement System boosted its stake in shares of PagerDuty by 1.4% during the 2nd quarter. California State Teachers Retirement System now owns 81,474 shares of the company’s stock worth $1,245,000 after acquiring an additional 1,129 shares during the last quarter. Loomis Sayles & Co. L P grew its holdings in PagerDuty by 0.3% during the fourth quarter. Loomis Sayles & Co. L P now owns 1,092,963 shares of the company’s stock valued at $14,329,000 after purchasing an additional 3,276 shares during the period. Alliancebernstein L.P. boosted its position in shares of PagerDuty by 4.1% in the third quarter. Alliancebernstein L.P. now owns 95,302 shares of the company’s stock worth $1,574,000 after purchasing an additional 3,784 shares during the period. Finally, Swiss National Bank increased its stake in PagerDuty by 2.3% in the 3rd quarter. Swiss National Bank now owns 169,700 shares of the company’s stock worth $2,803,000 after buying an additional 3,800 shares in the last quarter. 97.26% of the stock is currently owned by hedge funds and other institutional investors.

PagerDuty Company Profile

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.