PagerDuty (NYSE:PD) Releases Quarterly Earnings Results, Beats Expectations By $0.08 EPS

PagerDuty (NYSE:PD) announced its earnings results on Thursday. The company reported $0.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.24 by $0.08, FiscalAI reports. PagerDuty had a net margin of 38.60% and a return on equity of 17.57%. The business had revenue of $120.97 million for the quarter, compared to analyst estimates of $119.52 million. During the same quarter last year, the business earned $0.24 earnings per share. The company’s revenue for the quarter 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

Shares of PD stock opened at $10.00 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. The firm’s 50-day moving average is $6.72 and its two-hundred day moving average is $9.43. PagerDuty has a 12 month low of $5.70 and a 12 month high of $18.00. The company has a market capitalization of $849.94 million, a PE ratio of 4.90, a price-to-earnings-growth ratio of 3.30 and a beta of 0.78.

Hedge Funds Weigh In On PagerDuty

Institutional investors have recently bought and sold shares of the company. Cerity Partners LLC purchased a new position in PagerDuty during the second quarter worth about $290,000. Sherbrooke Park Advisers LLC purchased a new position in PagerDuty during the third quarter worth about $246,000. Norges Bank purchased a new position in PagerDuty during the second quarter worth about $242,000. One68 Global Capital LLC raised its stake in PagerDuty by 80.0% during the fourth quarter. One68 Global Capital LLC now owns 18,000 shares of the company’s stock worth $236,000 after purchasing an additional 8,000 shares during the period. Finally, Sei Investments Co. purchased a new position in PagerDuty during the third quarter worth about $218,000. 97.26% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about PagerDuty

Here are the key news stories impacting PagerDuty this week:

• Positive Sentiment: PagerDuty reported Q1 earnings of $0.32 per share, beating expectations, and revenue of $120.97 million also topped estimates. The company said results exceeded guidance for both revenue and non-GAAP operating margin, which helped boost sentiment. PagerDuty Announces First Quarter Fiscal 2027 Financial Results
• Positive Sentiment: The board authorized a new $100 million share buyback program, which can reduce share count and signals management believes the stock is undervalued. RTT News buyback report
• Positive Sentiment: Canaccord Genuity raised its price target on PagerDuty to $10 from $9 and maintained a buy rating, reinforcing the view that recent momentum may have more room to run.
• Neutral Sentiment: Management lifted Q2 fiscal 2027 guidance slightly above consensus, but the outlook still points to only modest growth, suggesting the business is improving but not reaccelerating sharply.
• Negative Sentiment: Some investors remain cautious because underlying fundamentals are still weak: revenue grew less than 1% year over year, ARR was flat, large-customer counts fell, and DBNRR slipped below 100%, indicating churn is outpacing expansion. PagerDuty Q1 Earnings: Still Struggling

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the stock. Truist Financial lowered their price target on shares of PagerDuty from $12.00 to $9.00 and set a “buy” rating on the stock in a research report on Friday, March 13th. Royal Bank Of Canada boosted their price target on shares of PagerDuty from $8.00 to $9.00 and gave the stock a “sector perform” rating in a research report on Friday. Morgan Stanley set a $9.00 price target on shares of PagerDuty in a research report on Thursday, February 19th. Wall Street Zen lowered shares of PagerDuty from a “buy” rating to a “hold” rating in a research report on Monday, May 25th. Finally, Canaccord Genuity Group boosted their price target on shares of PagerDuty from $9.00 to $10.00 and gave the stock a “buy” rating in a research report on Friday. Three research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $11.25.

PagerDuty declared that its Board of Directors has approved a share repurchase program on Thursday, May 28th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 16.4% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s board of directors believes its shares are undervalued.

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.