PagerDuty (PD) AI Stock Analysis

• Market Cap: $1.51B
• Dividend Yield: N/A
• Average Volume (3M): 1.92M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: 8.20%
• EPS Growth: 82.75%
• Country: US
• Employees: 1,242
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.30
• Shares Outstanding: 93,246,410
• 10 Day Avg. Volume: 1,878,446
• 30 Day Avg. Volume: 1,920,773
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 2.85
• Enterprise Value/Gross Profit: 3.40
• Enterprise Value/Ebitda: 110.80
• 1Y Price Target: $18.38
• Price Target Upside: 13.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 60 Neutral
• Price Target: $16.50 ▲(1.79% Upside)

PagerDuty's overall stock score is primarily driven by its strong financial performance in terms of revenue growth and gross profit margins, despite challenges in profitability and high leverage. The positive sentiment from the earnings call, highlighting GAAP profitability and strategic growth initiatives, also contributes positively. However, technical indicators suggest a neutral trend, and the valuation remains a concern due to negative earnings and lack of dividends.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

GAAP Profitability

Achieving GAAP profitability marks a significant milestone, enhancing financial stability and investor confidence, and supporting sustainable growth.

AI Ecosystem Traction

Strong traction in the AI ecosystem positions the company as a leader in innovation, driving future growth through cutting-edge technology adoption.

Negative Factors

High Leverage

High leverage can strain financial flexibility, increasing risk and potentially impacting the company's ability to invest in growth opportunities.

Elevated Churn

Elevated churn indicates challenges in customer retention, which can hinder revenue stability and growth if not addressed effectively.

Inconsistent Sales Performance

Inconsistent sales performance in key regions can impact revenue growth and market position, necessitating strategic adjustments to improve execution.

PagerDuty Business Overview & Revenue Model

Company Description

PagerDuty, Inc. operates a digital operations management platform in the United States, Japan, and internationally. Its digital operations management platform collects data digital signals from virtually any software-enabled system or device, and leverage powerful machine learning to correlate, process, and predict opportunities and issues. It serves various industries, including software and technology, telecommunications, retail, travel and hospitality, media and entertainment, and financial services. PagerDuty, Inc. was founded in 2009 and is headquartered in San Francisco, California.

How the Company Makes Money

PagerDuty generates revenue primarily through a subscription-based model, offering various pricing tiers for its platform based on features and usage levels. Key revenue streams include monthly and annual subscriptions from enterprise customers, who pay for access to the incident response and operational management capabilities. Additionally, PagerDuty has partnerships with major technology providers, such as AWS, Google Cloud, and Microsoft Azure, which help to enhance its service offerings and extend its market reach. The company also benefits from upselling and cross-selling opportunities as clients expand their usage of the platform across different teams and departments.

PagerDuty Financial Statement Overview

Summary

PagerDuty shows strong revenue and cash flow growth, with a high gross profit margin of 83.30%. However, the company faces challenges with a negative net profit margin of -7.13% and moderate leverage, indicating areas for improvement in profitability and equity financing.

Income Statement

PagerDuty has demonstrated strong revenue growth with a 10.54% increase from the previous year, indicative of a robust growth trajectory. The company's gross profit margin is high at 83.30% TTM, showcasing its efficient cost management in generating revenue. However, the net profit margin remains negative at -7.13% TTM, reflecting ongoing operational challenges and losses, although improving from previous periods. The EBIT margin of -10.15% and EBITDA margin of -3.05% TTM suggest that operational efficiencies need enhancement to achieve profitability.

Balance Sheet

The balance sheet reflects a moderate level of financial stability. PagerDuty's debt-to-equity ratio stands at 3.18, indicating reliance on debt but showing a manageable level of leverage typical for growth-oriented tech firms. The return on equity is negative at -23.30% TTM, due to the negative net income, highlighting profitability challenges. The equity ratio of 15.71% TTM suggests a lower proportion of equity financing, posing potential risks if revenue growth does not translate into profitability.

Cash Flow

PagerDuty displays strong cash flow performance with a free cash flow growth rate of 71.19% from the previous year, indicating effective cash generation. The operating cash flow to net income ratio is 3.53 TTM, highlighting substantial cash flow relative to net income and reflecting efficient operations. The free cash flow to net income ratio of 3.25 TTM further supports the company's ability to generate cash despite net losses, providing a cushion for future investments and debt obligations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	483.61M	467.50M	430.70M	370.79M	281.40M	213.56M
Gross Profit	405.18M	387.83M	352.87M	300.36M	233.03M	182.87M
EBITDA	12.42M	-11.89M	-52.80M	-107.20M	-93.36M	-57.57M
Net Income	-13.25M	-42.73M	-81.76M	-129.22M	-107.45M	-68.90M
Balance Sheet
Total Assets	891.53M	927.27M	925.31M	817.87M	806.45M	795.44M
Cash, Cash Equivalents and Short-Term Investments	567.85M	570.83M	571.19M	476.97M	543.36M	560.28M
Total Debt	408.37M	463.65M	461.02M	301.52M	307.62M	249.33M
Total Liabilities	693.85M	779.22M	746.41M	575.79M	539.47M	428.72M
Stockholders Equity	180.71M	129.83M	171.60M	240.98M	266.98M	366.73M
Cash Flow
Free Cash Flow	110.52M	108.41M	64.43M	8.51M	-12.83M	5.25M
Operating Cash Flow	118.52M	117.89M	71.97M	16.98M	-6.02M	10.10M
Investing Cash Flow	-22.21M	-19.97M	-30.52M	-86.17M	17.38M	-49.32M
Financing Cash Flow	-144.38M	-116.14M	51.60M	-6.41M	-736.00K	254.37M

PagerDuty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 16.21 is above the 20-day moving average (MA) of 16.05, above the 50-day MA of 16.21, and below the 200-day MA of 16.48, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 52.65 is Neutral, neither overbought nor oversold. The STOCH value of 79.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PD.

PagerDuty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KARO	―	$1.43B	26.06	34.42%	2.73%	18.30%	22.19%
YALA	―	$1.15B	9.12	21.16%	―	6.79%	12.97%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SEMR	―	$1.14B	―	-0.50%	―	22.16%	-107.92%
PD	―	$1.51B	―	-8.04%	―	8.20%	82.75%
SPT	―	$662.12M	―	-32.50%	―	14.79%	27.52%
BMBL	―	$611.58M	―	-75.71%	―	-5.06%	-2318.18%

PagerDuty Corporate Events

Pagerduty Faces Financial Risks Amid Unregistered Equity Sales

Pagerduty, Inc. faces significant risks related to the unregistered sales of equity securities, which could impact its financial stability and market perception. This risk, as outlined in their Quarterly Report on Form 10-Q, highlights potential adverse effects on their business operations and stock trading price. The company must navigate these challenges carefully to maintain investor confidence and ensure compliance with regulatory requirements. Any missteps could lead to a decline in their financial condition and overall market prospects.

PagerDuty, Inc. Earnings Call: Profitability and Challenges

PagerDuty, Inc.’s recent earnings call painted a picture of both triumph and challenge. The company celebrated significant milestones, such as achieving GAAP profitability for the first time and experiencing robust international growth. However, these accomplishments were somewhat overshadowed by issues like elevated churn and inconsistent sales performance in North America. Despite these hurdles, PagerDuty, Inc. remains optimistic about its growth potential, driven by strategic initiatives and a strong foothold in the AI-native segment.

PagerDuty Reports Strong Q2 Fiscal 2026 Results

PagerDuty, Inc. is a global leader in digital operations management, providing an AI-powered platform that enhances business resilience and operational efficiency for enterprises. In its latest earnings report, PagerDuty announced a 6% year-over-year revenue increase to $123 million for the second quarter of fiscal 2026, alongside a 5% growth in Annual Recurring Revenue (ARR) to $499 million. The company also achieved GAAP profitability with an operating income of nearly $4 million and a non-GAAP operating income of $31 million.

PagerDuty Expands Share Repurchase Program to $200M

On August 28, 2025, PagerDuty‘s Board of Directors approved an increase in the company’s share repurchase program to $200 million, up from $150 million, with repurchases expected to be funded from existing cash balances. The company also reported a 6% increase in second-quarter revenue to $123 million and a 5% growth in Annual Recurring Revenue to $499 million, alongside achieving GAAP profitability and appointing a new Chief Revenue Officer to drive global revenue growth.

The most recent analyst rating on (PD) stock is a Hold with a $17.50 price target. To see the full list of analyst forecasts on PagerDuty stock, see the PD Stock Forecast page.

PagerDuty Appoints Paul Underwood as Accounting Officer

On July 25, 2025, PagerDuty, Inc. appointed Paul Underwood as the company’s principal accounting officer, a role previously held by Howard Wilson, who remains the Chief Financial Officer. Underwood, who joined PagerDuty as Chief Accounting Officer in April 2025, brings extensive experience from his previous roles at Cloudflare and Autodesk, enhancing the company’s financial leadership team.

The most recent analyst rating on (PD) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on PagerDuty stock, see the PD Stock Forecast page.