PagerDuty (NYSE:PD) Releases Q3 2027 Earnings Guidance

PagerDuty (NYSE:PD) updated its third quarter 2027 earnings guidance on Thursday morning. The company provided earnings per share (EPS) 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 Price Performance

Shares of PD opened at $13.80 on Friday. PagerDuty has a twelve month low of $5.70 and a twelve month high of $17.29. The firm’s fifty day simple moving average is $10.68 and its 200-day simple moving average is $8.44. The firm has a market capitalization of $1.06 billion, a price-to-earnings ratio of 6.90, a PEG ratio of 3.24 and a beta of 0.93. The company has a current ratio of 1.95, a quick ratio of 1.95 and a debt-to-equity ratio of 1.83.

PagerDuty (NYSE:PD) last posted its earnings results on Thursday, August 27th. The company reported $0.32 EPS for the quarter, meeting the consensus estimate of $0.32. PagerDuty had a return on equity of 17.97% and a net margin of 37.50%.The firm had revenue of $124.44 million for the quarter, compared to analyst estimates of $124.22 million. During the same quarter in the prior year, the company posted $0.30 earnings per share. PagerDuty’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. Equities analysts forecast that PagerDuty will post 0.58 EPS for the current fiscal year.

PagerDuty declared that its Board of Directors has initiated a share repurchase program on Thursday, May 28th that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 16.4% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its stock is undervalued.

Wall Street Analyst Weigh In

Several analysts have commented on the company. UBS Group set a $13.50 price objective on PagerDuty in a research note on Wednesday. Weiss Ratings upgraded PagerDuty from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, August 21st. Wall Street Zen downgraded shares of PagerDuty from a “buy” rating to a “hold” rating in a report on Saturday, July 25th. Royal Bank Of Canada upped their target price on shares of PagerDuty from $9.00 to $12.00 and gave the stock a “sector perform” rating in a research report on Friday, August 14th. Finally, Truist Financial boosted their target price on PagerDuty from $11.00 to $13.00 and gave the stock a “buy” rating in a research report on Thursday, August 20th. Three analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $12.94.

Key Stories Impacting PagerDuty

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 and revenue of $124.44 million, ahead of expectations for $123.27 million. Revenue increased 0.8% year over year. PagerDuty Q2 Earnings Results
• Positive Sentiment: Management raised its earnings outlook. Fiscal 2027 EPS guidance of $1.33 to $1.37 is well above the $1.17 analyst consensus, while third-quarter EPS guidance of $0.34 to $0.36 also exceeds expectations. Full-year revenue guidance of $491.5 million to $496.5 million is broadly in line with estimates. PagerDuty Guidance Update
• Positive Sentiment: Cost reductions are supporting margins. PagerDuty plans to cut approximately 15% of its workforce and forecast third-quarter operating margins of 26.5% to 27.5%. Investors appear to be viewing the restructuring as a way to accelerate profitable growth. The company also highlighted more than $500 million in annual recurring revenue and $33 million in quarterly free cash flow. PagerDuty Margin Forecast and Restructuring
• Positive Sentiment: Canaccord Genuity upgraded its valuation view. The firm raised its price target from $10 to $15 and maintained a Buy rating, providing additional support for the stock’s advance. Canaccord Raises PagerDuty Price Target
• Neutral Sentiment: Analyst opinion remains mixed. Monness analyst Brian White reiterated a Hold rating, citing sluggish demand and mixed fundamentals. This suggests investors may question whether the improved profitability can be sustained if growth remains limited. PagerDuty Hold Rating

Institutional Inflows and Outflows

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

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.