Pagerduty Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.46%.
Did PD Beat Earnings? Q2 2026 Results
PagerDuty posted a headline-grabbing earnings beat in its fiscal second quarter of 2026, with non-GAAP EPS of $0.30 clearing the $0.20 consensus estimate by 49.25%, even as revenue of $123.41 million came in fractionally below the $123.52 million expectation, a miss of just 0.09%. Revenue grew 6.5% year over year, and the more compelling story was on the bottom line, where disciplined cost management drove a dramatic swing to GAAP operating income of $3.57 million from an operating loss of $16.03 million a year ago, aided in part by stock-based compensation falling to $25.96 million from $32.37 million. Annual recurring revenue reached $499 million, growing 5% year over year, while the company's deepening push into AI-powered operations drew notable customer expansions including Shopify and The Lego Group. Looking ahead, PagerDuty guided Q3 revenue to $124 to $126 million and raised its full-year non-GAAP EPS outlook to $1.00 to $1.04, even as it trimmed the top end of its revenue range, a trade-off that reflects confidence in profitability despite a measured top-line posture.
- GAAP profitability achieved with operating income of $3.6 million vs. operating loss of $16.0 million a year ago
- Non-GAAP operating margin expanded to 25.4% from 17.3% year over year
- Solid growth across international markets
- Paid customer additions outpaced last year's full-year performance
- Customers with ARR over $100K grew 6% to 868
- Gross margin improved to 84.6% from 82.7% year over year
- Stock-based compensation declined significantly year over year
“PagerDuty achieved important milestones in Q2, including GAAP profitability, solid growth across international markets, and paid customer additions that have already outpaced last year's full year performance.”
PagerDuty CEO, on the earnings call
Forward Guidance & Outlook
For Q3 FY2026, PagerDuty expects revenue of $124.0 million to $126.0 million (4-6% YoY growth) and non-GAAP diluted EPS of $0.24 to $0.25. For full-year FY2026, the company expects revenue of $493.0 million to $497.0 million (5-6% growth, narrowed from prior $493-$499M range) and non-GAAP diluted EPS of $1.00 to $1.04 (raised from prior $0.95-$1.00), assuming approximately 94 million diluted shares and a 22% non-GAAP tax rate.
PD YoY Financials
Figures from SEC filings and company reports. Not investment advice.