Companies /Technology
Pagerduty Inc
NYSE: PD Software - Application
$16.33
▲ $0.09 (+0.55%) today
Markets open · 9:46am ET

PagerDuty (PD) 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

How Did PD Stock React to Q3 2026 Earnings?

% 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

Yes. PagerDuty reported Q3 2026 earnings of $0.33 a share on Nov 25, 2025, beating the $0.24 consensus estimate by 35.0%. Revenue was $124.5M against a $124.9M estimate.

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

What Was PagerDuty's Outlook in Q3 2026?

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
PD income statement, Q3 2026 versus Q3 2025
Metric Q3 2026 Q3 2025 Year over year
Revenue $124.5M $118.9M +4.7%
Gross Profit $106.2M $98.7M +7.6%
Operating Income $8.1M $2.9M +178.5%
Net Income $161.4M $5.5M +2,824.5%

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