Companies /Technology

Pagerduty Inc

NYSE: PD Software - Application
$13.77
▼ $0.27 (−1.92%) today
Markets closed · 5:48am ET

Q2 2027 Earnings

Reported Aug 27, 2026, 4:06pm ET · SEC source
$0.32
Beat +4.34%
EPS · est. $0.31 Adjusted

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

$124.4M
Beat +1.15%
Revenue · est. $123.0M
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+5%+10%Aug 27Aug 28report 4:06pm ETearnings−0.2%+8.9%
0+5%+10%Aug 27Aug 28earnings−0.2%+8.9%
PD +8.9%S&P 500 −0.2%
0+5%+10%Aug 27Aug 28report 4:06pm ETearnings−0.6%+8.9%
0+5%+10%Aug 27Aug 28earnings−0.6%+8.9%
PD +8.9%NASDAQ −0.6%
0+6%+12%Aug 26Sep 2report 4:06pm ETearnings−0.8%+11.3%
0+6%+12%Aug 26Sep 2earnings−0.8%+11.3%
PD +11.3%S&P 500 −0.8%
0+6%+12%Aug 26Sep 2report 4:06pm ETearnings−1.6%+11.3%
0+6%+12%Aug 26Sep 2earnings−1.6%+11.3%
PD +11.3%NASDAQ −1.6%
+9.50%
Day of report
+2.24%
Next session

Did PD Beat Earnings? Q2 2027 Results

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.

Key Takeaways
  • 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

Forward Guidance & 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

Q2 2027 vs Q2 2026 · SEC filings Q2 2026 Q2 2027
$0$40.0M$80.0M$120.0M$123.4M$124.4MRevenue$104.4M$104.4MGross Profit$3.6M$10.2MOperating Income$9.8M$7.7MNet Income
$0$40.0M$80.0M$120.0MRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.