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PagerDuty
(NYSE:PD)
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Rating:75Outperform
Price Target:
$10.00
▲(10.13% Upside)
Action:Reiterated
Date:07/16/26
The score reflects improving financial performance led by strong cash generation and a shift to operating profitability, supported by a low P/E valuation. Technicals are bullish but appear overbought, while the latest earnings call tempers the outlook due to flat revenue/ARR guidance and sub-100% net retention despite continued margin strength.
Positive Factors
Strong Cash Generation
Sustained, growing free cash flow that roughly equals net income provides durable internal funding for R&D, product investment, buybacks and working capital. Over months this supports execution without heavy external financing and improves optionality for strategic initiatives.
Negative Factors
Muted Revenue & Flat ARR
Flat ARR and near-term revenue guidance imply limited top-line momentum. Over a multi-month horizon this constrains operating leverage and makes it harder to fund sales/marketing investments required to accelerate enterprise expansion and justify sustained margin targets.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Sustained, growing free cash flow that roughly equals net income provides durable internal funding for R&D, product investment, buybacks and working capital. Over months this supports execution without heavy external financing and improves optionality for strategic initiatives.
Read all positive factors
PagerDuty (PD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$829.84M
Dividend YieldN/A
Average Volume (3M)1.87M
Price to Earnings (P/E)4.9
Beta (1Y)1.31
Revenue Growth3.69%
EPS GrowthN/A
CountryUS
Employees1,155
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)2.09
Shares Outstanding77,122,570
10 Day Avg. Volume1,626,656
30 Day Avg. Volume1,872,925
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)3.81
Price to Sales (P/S)1.96
P/FCF Ratio8.64
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue2.01
Enterprise Value/Gross Profit2.36
Enterprise Value/Ebitda17.67
Forecast
1Y Price Target
$9.50Price Target Upside4.63% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)1.31
Revenue Forecast (FY)$494.23M
PagerDuty Business Overview & Revenue Model
Company Description
PagerDuty, Inc. offers a digital platform designed for operations management, with its reach extending throughout the United States, Japan, and other international regions. This advanced platform is capable of receiving digital signals from virtua...
How the Company Makes Money
PagerDuty primarily makes money through subscription revenue from its cloud software platform sold to organizations on recurring contracts. Customers pay for access to PagerDuty products (including incident management/on-call alerting and related ...
PagerDuty Earnings Call Summary
Earnings Call Date:May 28, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Aug 27, 2026
Earnings Call Sentiment Positive
The call presented a mix of promising operational and financial strengths—expanded margins, sustained GAAP profitability, strong cash generation, product innovation, and early traction for usage-based pricing—while also acknowledging clear near-term growth and retention challenges (flat ARR, modest revenue growth, DBNR below 100%). Management outlined a credible pathway (usage-based pricing, enterprise wins, AI product roadmap) to accelerate growth, but the benefit is still in early innings and not yet fully reflected in top-line results.Positive Updates
Revenue Growth
Quarterly revenue of $121 million, up 1% year-over-year, and in line with the top end of guidance for the quarter.
Negative Updates
Limited Revenue and ARR Growth
Revenue grew only 1% YoY ($121M) and ARR was flat year-over-year at $496 million, indicating muted top-line growth despite product and pricing changes.
Read all updates
Q1-2027 Updates
Positive
Negative
Revenue Growth
Quarterly revenue of $121 million, up 1% year-over-year, and in line with the top end of guidance for the quarter.
Read all positive updates
Company Guidance
PagerDuty guided Q2 revenue of $122M–$124M (midpoint roughly flat YoY) with net income per diluted share of $0.29–$0.31, implying a non‑GAAP operating margin of about 22%–23%; for full‑year FY27 it reiterated revenue of $488.5M–$496.5M (midpoint essentially flat YoY) and net income per diluted share of $1.27–$1.32, implying a 24%–25% operating margin. Management noted Q1 outperformance (Q1 revenue $121M, non‑GAAP operating margin 25% with a long‑term 30% target), ARR exiting Q1 of $496M, dollar‑based net retention 97%, Q1 cash from operations $44M (37% of revenue) and free cash flow $41M (34% of revenue), trailing‑12‑month billings $497M (+1%), total RPO ~$441M (+3%) with ~$316M (72%) expected in the next 12 months, $444M of cash on the balance sheet, completion of a $200M buyback (8.5M shares/$63M repurchased) and a new $100M repurchase program; they also warned Q1 cash flow was elevated by collections and said marketing spend will be deployed in Q2.PagerDuty Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
57
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 493.71M | 492.55M | 467.50M | 430.70M | 370.79M | 281.40M |
| Gross Profit | 419.73M | 418.40M | 387.83M | 352.87M | 300.36M | 233.03M |
| EBITDA | 56.04M | 39.63M | -14.52M | -52.80M | -107.20M | -93.36M |
| Net Income | 185.82M | 173.85M | -42.73M | -81.76M | -129.22M | -107.45M |
Balance Sheet | ||||||
| Total Assets | 936.59M | 990.51M | 927.27M | 925.31M | 817.87M | 806.45M |
| Cash, Cash Equivalents and Short-Term Investments | 443.96M | 469.84M | 570.83M | 571.19M | 476.97M | 543.36M |
| Total Debt | 412.75M | 413.33M | 463.65M | 461.02M | 301.52M | 307.62M |
| Total Liabilities | 708.11M | 719.85M | 779.22M | 746.41M | 575.79M | 539.47M |
| Stockholders Equity | 216.53M | 253.59M | 129.83M | 171.60M | 240.98M | 266.98M |
Cash Flow | ||||||
| Free Cash Flow | 125.00M | 111.92M | 108.41M | 64.43M | 8.51M | -12.83M |
| Operating Cash Flow | 128.47M | 114.86M | 117.89M | 71.97M | 16.98M | -6.02M |
| Investing Cash Flow | -21.67M | -18.28M | -19.97M | -30.52M | -86.17M | 17.38M |
| Financing Cash Flow | -270.08M | -206.42M | -116.14M | 51.60M | -6.41M | -736.00K |
PagerDuty Technical Analysis
Positive
9.08
Price Trends
9.25
Positive
7.98
Positive
10.06
Positive
Market Momentum
0.09
Positive
44.49
Neutral
7.66
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PD, the sentiment is Positive. The current price of 9.08 is below the 20-day moving average (MA) of 10.10, below the 50-day MA of 9.25, and below the 200-day MA of 10.06, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 44.49 is Neutral, neither overbought nor oversold. The STOCH value of 7.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PD.
PagerDuty Risk Analysis
PagerDuty disclosed 68 risk factors in its most recent earnings report. PagerDuty reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
PagerDuty Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $819.87M | 5.84 | 17.85% | ― | -2.25% | 4.06% | |
75 Outperform | $829.84M | 4.93 | 76.52% | ― | 3.69% | ― | |
74 Outperform | $1.99B | 32.35 | 31.36% | 2.36% | 29.84% | 13.84% | |
69 Neutral | $530.13M | -13.17 | -19.29% | ― | 12.27% | 37.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $387.38M | -0.54 | -110.37% | ― | -11.42% | -20.07% |
* Technology Sector Average
PD
PagerDuty
10.37
-5.75
-35.67%
SPT
Sprout Social
8.47
-8.68
-50.61%
YALA
Yalla Group
5.38
-2.43
-31.11%
BMBL
Bumble
2.91
-4.87
-62.60%
KARO
Karooooo
64.03
20.53
47.19%
PagerDuty Corporate Events
Business Operations and StrategyExecutive/Board Changes
PagerDuty Appoints Alex Shootman to Board of Directors
Positive
Jul 15, 2026
On July 11, 2026, PagerDuty director Elena Gomez resigned from the company’s board and its audit committee, a move the company said was unrelated to any disagreement over operations or policies and driven by her focus on her expanding execut...
Business Operations and StrategyExecutive/Board Changes
PagerDuty Appoints New CFO to Lead Growth Strategy
Positive
Jun 22, 2026
On June 22, 2026, PagerDuty appointed Eric Prengel as its new chief financial officer, succeeding long-time CFO Howard Wilson, who has served in the role since 2016 and will remain with the company as a strategic advisor until no later than Februa...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
PagerDuty Shareholders Reinforce Board and Governance Strategy
Positive
Jun 22, 2026
On June 18, 2026, PagerDuty held its 2026 Annual Meeting of Stockholders, where a quorum representing 86.25% of voting power approved all three proposals on the ballot. Stockholders re-elected four Class I directors, including CEO Jennifer Tejada,...
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial Disclosures
PagerDuty Posts Profit, Names New CEO, Boosts Buybacks
Positive
May 28, 2026
On May 27, 2026, PagerDuty’s board authorized a new $100 million share repurchase program running through May 26, 2028, replacing prior programs totaling $300 million and signaling continued confidence in its balance sheet, with buybacks to ...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
PagerDuty Appoints John DiLullo as New CEO
Positive
May 11, 2026
PagerDuty announced on May 11, 2026, that it has appointed veteran enterprise software and cybersecurity executive John DiLullo as chief executive officer and a member of its board, effective the same day. Longtime CEO Jennifer Tejada, who has led...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.