Companies /Technology

Pagerduty Inc

NYSE: PD Software - Application
$13.77
▼ $0.27 (−1.92%) today
Markets closed · 6:28am ET

Q3 2026 Earnings

Reported Nov 25, 2025, 4:09pm ET · SEC source
$0.33
Beat +35.02%
EPS · est. $0.24
$124.5M
Miss −0.25%
Revenue · est. $124.9M
+13.6%
Beating market
PD vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−18%−9%0Nov 25Nov 26report 4:09pm ETearnings+0.8%−19.2%
−18%−9%0Nov 25Nov 26earnings+0.8%−19.2%
PD −19.2%S&P 500 +0.8%
−18%−9%0Nov 25Nov 26report 4:09pm ETearnings+1.0%−19.2%
−18%−9%0Nov 25Nov 26earnings+1.0%−19.2%
PD −19.2%NASDAQ +1.0%
−18%−9%0+9%Nov 24Dec 3report 4:09pm ETearnings+1.3%−15.5%
−18%−9%0+9%Nov 24Dec 3earnings+1.3%−15.5%
PD −15.5%S&P 500 +1.3%
−18%−9%0+9%Nov 24Dec 3report 4:09pm ETearnings+2.4%−15.5%
−18%−9%0+9%Nov 24Dec 3earnings+2.4%−15.5%
PD −15.5%NASDAQ +2.4%
−23.32%
Day of report
+3.09%
Next session
+3.18%
One week
+14.69%
30 days

S&P 500 over the same 30 days: +1.08%.

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 $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

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

PagerDuty CEO, on the earnings call

Forward Guidance & Outlook

For Q4 FY2026, PagerDuty expects revenue of $122.0–$124.0 million (0%–2% YoY growth) and non-GAAP diluted EPS of $0.24–$0.25 on approximately 91 million diluted shares. For full-year FY2026, the company lowered revenue guidance to $490.0–$492.0 million (from $493.0–$497.0 million), representing approximately 5% YoY growth, while raising non-GAAP diluted EPS guidance to $1.11–$1.12 (from $1.00–$1.04) on approximately 93 million diluted shares, both using a 22% non-GAAP tax rate.

PD YoY Financials

Q3 2026 vs Q3 2025 · SEC filings Q3 2025 Q3 2026
$0$50.0M$100.0M$150.0M$118.9M$124.5MRevenue$98.7M$106.2MGross Profit$2.9M$8.1MOperating Income$5.5M$161.4MNet Income
$0$50.0M$100.0M$150.0MRevenueGross ProfitOperating IncomeNet Income

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