PagerDuty (NYSE:PD) Issues FY 2027 Earnings Guidance

PagerDuty (NYSE:PD) updated its FY 2027 earnings guidance on Thursday morning. The company provided earnings per share guidance of 1.330-1.370 for the period, compared to the consensus EPS estimate of 1.170. The company issued revenue guidance of $491.5 million-$496.5 million, compared to the consensus revenue estimate of $493.2 million. PagerDuty also updated its Q3 2027 guidance to 0.340-0.360 EPS.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on PD shares. UBS Group set a $13.50 price target on PagerDuty in a research report on Wednesday. Weiss Ratings raised shares of PagerDuty from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, August 21st. Royal Bank Of Canada raised their target price on shares of PagerDuty from $9.00 to $12.00 and gave the company a “sector perform” rating in a report on Friday, August 14th. Canaccord Genuity Group upped their price objective on PagerDuty from $9.00 to $10.00 and gave the company a “buy” rating in a research report on Friday, May 29th. Finally, TD Cowen restated a “buy” rating on shares of PagerDuty in a research report on Wednesday. Three research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, PagerDuty has an average rating of “Hold” and a consensus price target of $12.28.

PagerDuty Trading Up 3.8%

NYSE:PD opened at $12.66 on Friday. The business’s 50-day moving average is $10.57 and its two-hundred day moving average is $8.40. The firm has a market capitalization of $976.26 million, a PE ratio of 6.21, a price-to-earnings-growth ratio of 3.13 and a beta of 0.93. PagerDuty has a 12 month low of $5.70 and a 12 month high of $17.29. The company has a debt-to-equity ratio of 1.83, a current ratio of 1.95 and a quick ratio of 1.95.

PagerDuty (NYSE:PD) last issued its earnings results on Thursday, August 27th. The company reported $0.32 earnings per share for the quarter, topping the consensus estimate of $0.31 by $0.01. The company had revenue of $124.44 million during the quarter, compared to the consensus estimate of $123.27 million. PagerDuty had a return on equity of 18.20% and a net margin of 38.60%.The company’s revenue was up .8% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.30 earnings per share. PagerDuty has set its FY 2027 guidance at 1.330-1.370 EPS and its Q3 2027 guidance at 0.340-0.360 EPS. Research analysts predict that PagerDuty will post 0.58 earnings per share for the current fiscal year.

PagerDuty announced that its board has authorized a share buyback plan on Thursday, May 28th that permits the company to buyback $100.00 million in shares. This buyback authorization permits the company to repurchase up to 16.4% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s management believes its shares are undervalued.

PagerDuty News Summary

Here are the key news stories impacting PagerDuty this week:

• Positive Sentiment: Q2 results exceeded expectations: PagerDuty reported adjusted earnings of $0.32 per share versus the $0.31 consensus estimate, while revenue of $124.44 million surpassed forecasts of $123.27 million. Revenue increased 0.8% year over year, and the company generated $33 million in free cash flow. PagerDuty Announces Second Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Profit outlook was raised above analyst expectations: PagerDuty guided to fiscal 2027 EPS of $1.33-$1.37, compared with consensus of $1.17. Third-quarter EPS guidance of $0.34-$0.36 also exceeded the $0.31 consensus estimate. Full-year revenue guidance of $491.5-$496.5 million was broadly in line with the $493.2 million consensus, suggesting the primary upside is coming from cost control and profitability. PagerDuty forecasts Q3 FY2027 operating margin
• Positive Sentiment: Operating momentum showed some improvement: Management said annual recurring revenue surpassed $500 million, while customer growth accelerated. These metrics support the company’s strategy of expanding AI-first operations-management offerings, although overall revenue growth remains modest. PagerDuty sales and customer growth report
• Negative Sentiment: PagerDuty is cutting approximately 15% of its workforce: The restructuring could weigh on employee execution and signal continued pressure to align expenses with slower top-line growth. However, management expects the actions to help produce a third-quarter operating margin of 26.5%-27.5% and improve profitable growth. PagerDuty to cut about 15% of workforce

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in PD. Kestra Advisory Services LLC acquired a new stake in shares of PagerDuty during the fourth quarter worth $68,000. Los Angeles Capital Management LLC acquired a new position in PagerDuty during the 4th quarter worth $114,000. Inceptionr LLC acquired a new stake in PagerDuty in the fourth quarter worth about $132,000. State of Tennessee Department of Treasury bought a new position in shares of PagerDuty in the second quarter valued at approximately $160,000. Finally, Numerai GP LLC bought a new position in PagerDuty during the 4th quarter valued at $161,000. 97.26% of the stock is owned by institutional investors and hedge funds.

PagerDuty Company Profile

PagerDuty, Inc engages in the operation of a digital operations management platform in the United States and internationally. The company’s digital operations management platform collects data and digital signals from virtually any software-enabled system or device and leverage machine learning to correlate, process, and predict opportunities and issues. Its platform includes PagerDuty Incident Management that provides a real-time view across the status of a digital service while incorporating noise reduction to remove false positives; AIOps that applies machine learning to correlate and automate the identification of incidents from billions of events; Process Automation offers centralized design time and run time environment for orchestrating automated workflows that span across departments, technologies, and networks; Customer Service Operations, which is offered to orchestrate, automate, and scale responses to customer impacting issues.