PagerDuty

PD Q3 2026 Earnings

Reported Nov 25, 2025 at 4:09 PM ET · SEC Source

Q3 26 EPS

$0.33

BEAT +35.02%

Est. $0.24

Q3 26 Revenue

$124.5M

MISS 0.25%

Est. $124.9M

vs S&P Since Q3 26

-46.3%

TRAILING MARKET

PD -38.5% vs S&P +7.9%

Market Reaction

Did PD Beat Earnings? Q3 2026 Results

PagerDuty delivered a sharply split Q3 FY2026 report, posting a substantial earnings beat against a modest revenue miss that left investors weighing profitability progress against slowing top-line momentum. Non-GAAP diluted EPS of $0.33 cleared the $… Read more PagerDuty delivered a sharply split Q3 FY2026 report, posting a substantial earnings beat against a modest revenue miss that left investors weighing profitability progress against slowing top-line momentum. Non-GAAP diluted EPS of $0.33 cleared the $0.24 consensus estimate by 35.02%, powered by a dramatic expansion in non-GAAP operating margin to 28.5% from 21.0% a year ago, as stock-based compensation fell to $22.57 million from $31.77 million and total operating expenses dropped to $98.11 million from $108.97 million. Revenue of $124.55 million grew 4.7% year over year but fell just short of the $124.86 million consensus, and the company trimmed its full-year revenue outlook to $490.00 million–$492.00 million while simultaneously raising its non-GAAP EPS guidance to $1.11–$1.12, underscoring a clear pivot toward margin over growth. A declining dollar-based net retention rate of 100%, down from 107% a year ago, triggered significant investor concern after the print, with the stock falling sharply as securities fraud investigations were announced in its wake.

Key Takeaways

  • Disciplined execution and continued margin expansion driving GAAP profitability
  • Significant reduction in stock-based compensation expense from $31.8M to $22.6M YoY
  • Operating expense reduction from $109.0M to $98.1M YoY
  • Non-GAAP operating margin expansion to 28.5% from 21.0% YoY
  • Gross margin improvement to 85.3% from 83.0% YoY
24/7 Wall St

PD YoY Financials

Q3 2026 vs Q3 2025, source: SEC Filings

“PagerDuty delivered $125 million in revenue and our second consecutive quarter of GAAP profitability, reflecting disciplined execution and continued margin expansion.”

— Jennifer Tejada, Q3 2026 Earnings Press Release