PagerDuty (PD) Q2 2027 Earnings
Non-GAAP EPS excludes $14.8 million stock-based compensation, $3.3 million executive transition costs, $3.1 million adjustment attributable to redeemable non-controlling interest, $0.9 million amortization of acquired intangible assets, $0.6 million amortization of debt issuance costs, $0.2 million employer taxes related to employee stock transactions, and $(2.0) million income tax effects and adjustments
How Did PD Stock React to Q2 2027 Earnings?
S&P 500 over the same 30 days: −0.87%.
Did PD Beat Earnings? Q2 2027 Results
Yes. PagerDuty reported Q2 2027 earnings of $0.32 a share on Aug 27, 2026, beating the $0.31 consensus estimate by 4.3%. Revenue was $124.4M against a $123.0M estimate.
PagerDuty delivered a clean beat across the board in its fiscal second quarter of 2027, with revenue of $124.44 million edging above the $123.02 million consensus by 1.15% and non-GAAP diluted EPS of $0.32 clearing the $0.31 consensus estimate by 4.34%, extending the company's streak of beating EPS expectations to four consecutive quarters. Revenue grew 0.8% year over year, a modest pace that nonetheless came in above the high end of guidance, and the results were underpinned by a meaningful improvement in profitability, with GAAP operating income rising to $10.24 million from $3.57 million a year ago, partly reflecting a sharp decline in stock-based compensation to $16.47 million from $25.96 million. Annual Recurring Revenue crossed $501 million during the quarter, while free cash flow reached $32.78 million, a 26.3% margin. The quarter also brought significant leadership changes, including the appointments of a new CEO and CFO. Looking ahead, PagerDuty guided Q3 revenue to $123 million to $125 million, with full-year FY2027 revenue expected between $491.5 million and $496.5 million, alongside non-GAAP EPS of $1.33 to $1.37.
- Revenue above high end of guidance range
- ARR crossed $500 million, reaching $501 million
- Fifth consecutive quarter of GAAP profitability
- Non-GAAP operating margin of 23.7%
- Free cash flow margin of 26.3%
- Significant reduction in stock-based compensation expense
“We delivered revenue above the high end of our guidance range, crossed $500 million in ARR, and generated $33 million in free cash flow this quarter, providing encouraging signals that our strategy is gaining traction.”
PagerDuty CEO, on the earnings call
What Is PagerDuty's Outlook?
For Q3 FY2027, PagerDuty expects revenue of $123.0 million to $125.0 million, non-GAAP operating margin of 26.5% to 27.5%, and non-GAAP diluted EPS of $0.34 to $0.36 (assuming ~80 million diluted shares and a 20% non-GAAP tax rate). For full-year FY2027, the company expects revenue of $491.5 million to $496.5 million, non-GAAP operating margin of 25.0% to 26.0%, and non-GAAP diluted EPS of $1.33 to $1.37.
PD YoY Financials
| Metric | Q2 2027 | Q2 2026 | Year over year |
|---|---|---|---|
| Revenue | $124.4M | $123.4M | +0.8% |
| Gross Profit | $104.4M | $104.4M | −0.0% |
| Operating Income | $10.2M | $3.6M | +187.1% |
| Net Income | $7.7M | $9.8M | −21.1% |
When Does PagerDuty Report Next?
Figures from SEC filings and company reports. Not investment advice.