Companies /Technology

Pagerduty Inc

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

Q1 2027 Earnings

Reported May 28, 2026, 4:07pm ET · SEC source
$0.32
Beat +29.14%
EPS · est. $0.25
$121.0M
Beat +1.34%
Revenue · est. $119.4M
+2.2%
Beating market
PD vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−9%0+9%+18%May 28May 29report 4:07pm ETearnings+0.0%+17.8%
−9%0+9%+18%May 28May 29earnings+0.0%+17.8%
PD +17.8%S&P 500 +0.0%
−9%0+9%+18%May 28May 29report 4:07pm ETearnings+0.3%+18.0%
−9%0+9%+18%May 28May 29earnings+0.3%+18.0%
PD +18.0%NASDAQ +0.3%
0+20%May 27Jun 5report 4:07pm ETearnings−2.8%+7.6%
0+20%May 27Jun 5earnings−2.8%+7.6%
PD +7.6%S&P 500 −2.8%
0+20%May 27Jun 5report 4:07pm ETearnings−4.7%+7.6%
0+20%May 27Jun 5earnings−4.7%+7.6%
PD +7.6%NASDAQ −4.7%
+33.74%
Day of report
+7.44%
Next session
−7.04%
One week
+0.80%
30 days

S&P 500 over the same 30 days: −1.42%.

Did PD Beat Earnings? Q1 2027 Results

PagerDuty delivered a strong beat on both lines in its fiscal first quarter of 2027, with non-GAAP earnings per share of $0.32 clearing the $0.25 consensus by 29.14% and revenue of $120.97 million edging past estimates by 1.34%, even as top-line growth remained modest at 1.0% year over year. The standout driver was a dramatic improvement in profitability: GAAP operating income swung to $9.18 million from a $10.33 million loss a year ago, while non-GAAP operating margin expanded to 24.6% from 20.3%, fueled by sharply lower stock-based compensation and reduced sales and marketing spend. Free cash flow surged to $41.19 million, supporting a new $100 million share repurchase program of which $65.46 million was already deployed in the quarter, a move that sent shares up sharply. The results also coincided with a CEO transition, with John DiLullo stepping in as the company pivots toward AI-driven products and usage-based pricing. Looking ahead, PagerDuty guided Q2 revenue of $122.00 to $124.00 million and raised its full-year non-GAAP EPS outlook to $1.27 to $1.32, reflecting continued margin discipline even as growth stabilizes.

Key Takeaways
  • Continued execution on strategic and operational priorities exceeding guidance
  • Expanding AI offers and new Operations Cloud usage-based package
  • Significant reduction in stock-based compensation expense from $25.8M to $18.0M
  • Lower sales and marketing costs at $39.6M vs $50.0M year over year
  • Fourth consecutive quarter of GAAP profitability

“Our Q1 results exceeded guidance for both revenue and non-GAAP operating margin, reflecting continued execution against our strategic and operational priorities. Our expanding AI offers and the introduction of the new Operations Cloud usage-based package, further strengthens our platform and positions PagerDuty to accelerate long-term growth.”

PagerDuty CEO, on the earnings call

Forward Guidance & Outlook

For Q2 FY2027, PagerDuty expects total revenue of $122.0–$124.0 million and non-GAAP EPS of $0.29–$0.31 (assuming ~78 million diluted shares and a 20% non-GAAP tax rate). For full-year FY2027, the company maintained revenue guidance of $488.5–$496.5 million and raised non-GAAP EPS guidance to $1.27–$1.32 (from $1.23–$1.28), assuming ~79 million diluted shares and a 20% non-GAAP tax rate.

PD YoY Financials

Q1 2027 vs Q1 2026 · SEC filings Q1 2026 Q1 2027
$0$40.0M$80.0M$120.0M$119.8M$121.0MRevenue$100.6M$101.9MGross Profit$3.2M$9.2MOperating Income$1.8M$5.1MNet Income
$0$40.0M$80.0M$120.0MRevenueGross ProfitOperating IncomeNet Income

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