PagerDuty, Inc. operates a digital operations management platform in the United States and internationally. The company collects data and digital signals from software-enabled systems and devices, using artificial intelligence and machine learning to correlate, process, predict, and remediate incidents. Its platform includes PagerDuty Incident Management, AIOps, automation, customer service operations, and generative AI capabilities for the PagerDuty operations cloud platform. PagerDuty serves industries such as software and technology, telecommunications, retail, travel and hospitality, media and entertainment, and financial services. Founded in 2009, the company is headquartered in San Francisco, California.
PagerDuty Beats Q2, Raises Guidance, Cuts 15% of Staff
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Q2 beat and raised full-year guidance PagerDuty reported Q2 revenue of $124.4 million, beat sales and earnings estimates, surpassed $500 million in annual recurring revenue, and raised full-year revenue and profit guidance. This is the first hard company-specific evidence in months that its business is stabilizing, pushing the stock up about 8-9%.
This is the single biggest new company-specific catalyst and directly answers what is driving PD now.
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15% workforce cut announced alongside earnings PagerDuty said it will cut about 15% of its workforce. Investors initially read this as cost discipline that supports profit margins, but it also signals slower growth and a leaner future. The market's positive reaction suggests the cost savings outweighed near-term concerns.
The layoff is a major new event that shapes how investors view the company's cost structure and growth outlook.
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Sector-wide AI-driven software rally lifts PD In late August, enterprise software stocks surged as earnings from Salesforce, CrowdStrike, and Okta showed AI is driving growth rather than killing legacy software. PagerDuty climbed 4.4% in that broad rally, easing fears that AI agents would erode its subscription model.
This explains the improving sentiment backdrop that helped set up PD's earnings pop.
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Earlier AI disruption fears and weak peer results pressured PD In June, PagerDuty fell as AI disruption fears hit software stocks and Datadog's strong results highlighted PagerDuty's slower growth and weak guidance. These concerns pushed PD down sharply before the August earnings reversal.
This is the key counterweight that explains why PD was so beaten down before the recent bounce.
Q3 2026
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PagerDuty Beats Q2, Raises Guidance, Cuts 15% of Staff
▲
Q2 beat and raised full-year guidance PagerDuty reported Q2 revenue of $124.4 million, beat sales and earnings estimates, surpassed $500 million in annual recurring revenue, and raised full-year revenue and profit guidance. This is the first hard company-specific evidence in months that its business is stabilizing, pushing the stock up about 8-9%.
This is the single biggest new company-specific catalyst and directly answers what is driving PD now.
◆
15% workforce cut announced alongside earnings PagerDuty said it will cut about 15% of its workforce. Investors initially read this as cost discipline that supports profit margins, but it also signals slower growth and a leaner future. The market's positive reaction suggests the cost savings outweighed near-term concerns.
The layoff is a major new event that shapes how investors view the company's cost structure and growth outlook.
▲
Sector-wide AI-driven software rally lifts PD In late August, enterprise software stocks surged as earnings from Salesforce, CrowdStrike, and Okta showed AI is driving growth rather than killing legacy software. PagerDuty climbed 4.4% in that broad rally, easing fears that AI agents would erode its subscription model.
This explains the improving sentiment backdrop that helped set up PD's earnings pop.
▼
Earlier AI disruption fears and weak peer results pressured PD In June, PagerDuty fell as AI disruption fears hit software stocks and Datadog's strong results highlighted PagerDuty's slower growth and weak guidance. These concerns pushed PD down sharply before the August earnings reversal.
This is the key counterweight that explains why PD was so beaten down before the recent bounce.
News & notes movingPD
GlobalUnited States
Cloud & Digital Infrastructure▲
IT Operations Analytics Market to Rebound from $23.43 Billion in 2026 to $30.13 Billion by 2030
The global IT operations analytics market is projected to decline from $24.53 billion in 2025 to $23.43 billion in 2026, a compound annual growth rate of -4.5%, before rebounding to $30.13 billion by 2030 at a 6.5% CAGR from 2026, according to the IT Operations Analytics Market Report 2026 added to ResearchAndMarkets.com. The near-term contraction reflects high implementation and integration costs, the complexity of managing heterogeneous IT environments, and a shortage of professionals with advanced analytics expertise. Growth through 2030 is expected to be driven by the integration of artificial intelligence and machine learning into analytics platforms, rising adoption of hybrid IT environments, demand for automated incident management, and a focus on IT performance optimization. In April 2023, PagerDuty Inc. introduced PagerDuty AIOps, an automation solution spanning event ingestion through auto-remediation, and in May 2023 Hewlett Packard Enterprise completed its acquisition of OpsRamp Inc. for $4.5 billion to combine OpsRamp's hybrid digital operations management with HPE's edge-to-cloud platform. North America was the largest regional market in 2025, while Asia-Pacific is expected to record the fastest growth; featured companies include Microsoft Corporation, International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, Broadcom Inc., SAP SE, Splunk Inc., and BMC Inc.
Cloud & Digital Infrastructure › Observability & DevOps ▲Technology
Cloud & Digital Infrastructure › Data Platforms & Analytics Technology
HPE · Capital · Positive HPE completed its $4.5 billion acquisition of OpsRamp to combine hybrid digital operations management with its edge-to-cloud platform, positioning it in the growing AIOps market.
PD · Technology · Positive PagerDuty introduced PagerDuty AIOps, an automation solution spanning event ingestion through auto-remediation, aligning with the market's AI/ML-driven growth drivers.
Bandwidth Posts Strong Q2 With Highest Guidance Raise Among Software Development Peers
Bandwidth reported second-quarter revenues of $219.9 million, up 22.2% year on year, exceeding analysts' expectations by 1.4%, and posted the highest guidance raise among the 12 software development stocks tracked. The company, which provides cloud-based communications software and APIs for customers including Microsoft, Google, and Zoom, saw revenue and EBITDA guidance for next quarter beat analysts' expectations, and its stock is up 3.8% since reporting, trading at $54.24. Across the group, revenues beat consensus estimates by 3.2% and next quarter's revenue guidance came in 1.8% above, with share prices up 11% on average since the latest results. Fastly delivered the best quarter in the group with revenues of $183.3 million, up 23.3% year on year and 5.3% above expectations, while Akamai posted the weakest performance, with revenues of $1.1 billion, up 5.4% year on year and 0.6% above estimates. Twilio reported revenues of $1.50 billion, up 22% year on year and 5% above expectations, and PagerDuty reported revenues of $124.4 million, flat year on year but 0.9% above expectations, adding 126 customers to reach a total of 15,506.
Cloud & Digital Infrastructure › API & Integration (iPaaS) ▲Demand
Cloud & Digital Infrastructure › Edge & Content Delivery ▲Demand
Cloud & Digital Infrastructure › Observability & DevOps Demand
BAND · Capital · Positive Bandwidth beat Q2 revenue expectations and posted the highest guidance raise among the 12 tracked software development stocks.
AKAM · Capital · Negative Akamai posted the weakest performance in the group, with revenue up only 5.4% YoY and just 0.6% above estimates.
FSLY · Capital · Positive Fastly delivered the best quarter in the group, with revenue up 23.3% YoY and 5.3% above expectations.
TWLO · Capital · Positive Twilio reported revenue of $1.50 billion, up 22% YoY and 5% above expectations.
PD · Capital · Neutral PagerDuty revenue was flat YoY though 0.9% above estimates, adding 126 customers to reach 15,506.
PagerDuty Hits $500M ARR Milestone While Cutting 15% of Workforce
PagerDuty reported its fiscal 2027 second-quarter results on Thursday, Aug. 27, 2026, with annual recurring revenue crossing $500 million for the first time to reach $501 million, but the milestone came alongside a 15% workforce reduction and revenue growth of just 1%. Dollar-based net retention landed at 98%, which management called a sequential inflection, and customers paying more than $100,000 a year rose to 884, up 24 from the prior quarter. Non-GAAP operating margin came in at 23.7%, ahead of guidance, with $4.7 million in net income, $32.8 million in free cash flow, and non-GAAP earnings per diluted share of $0.32. The company raised full-year revenue guidance to $491.5 million to $496.5 million and non-GAAP operating margin guidance to 25% to 26%, while announcing new deals including a 36-month, nearly $3 million agreement with a large enterprise software platform and an $850,000 three-year usage-based deal with a financial services firm. However, total revenue was $124.4 million, up only 1% year over year, and third-quarter guidance of $123 million to $125 million remains roughly flat, prompting the workforce cut of about 15% in non-customer-facing roles, with restructuring charges of $5.5 million to $7.5 million. CEO John DiLullo cautioned that the retention work is not over and flagged risks from autonomous agents, while hedge fund ownership fell from 29 to 25 funds and short interest stands at 13.35% of the float.
PagerDuty Shares Jump 12.3% on Mixed Q2 Results and Updated 2027 Guidance
In late August 2026, PagerDuty reported second-quarter 2026 results with revenue of US$124.44 million and net income of US$4.73 million, alongside updated guidance for third-quarter and full fiscal year 2027 revenue. The company now guides third-quarter revenue to US$123.0–US$125.0 million and full fiscal 2027 revenue to US$491.5–US$496.5 million. While quarterly net income declined year over year, first-half net income improved meaningfully compared to the prior period. The stock rose 12.3% following the announcement, reflecting investor optimism about the steady revenue outlook despite ongoing margin concerns. Analysts' long-term projections vary widely, with some estimating revenue near US$503 million and earnings of about US$8 million by 2029, while the company's own narrative projects US$507.5 million in revenue and US$3.5 million in earnings by that year.
PagerDuty Stock Jumps 7.9% on Q2 Beat and Raised Guidance
PagerDuty shares surged 7.9% in afternoon trading after the company reported second-quarter 2026 financial results that beat Wall Street's consensus estimates for sales and earnings per share. The digital operations platform generated $124.4 million in revenue, surpassed $500 million in annual recurring revenue, and produced $32.78 million in free cash flow. Management also lifted full-year revenue guidance to $494 million at the midpoint and raised adjusted EPS guidance to $1.35. The stock is up 10.3% year-to-date but remains 20.4% below its 52-week high of $17.17 from September 2025.
Elastic and PagerDuty Surge on Earnings, Software Stocks Mixed
Elastic and PagerDuty shares surged on Friday following their latest earnings results, as enterprise software stocks showed mixed action. Elastic, the Amsterdam-based search and AI platform, rocketed about 19% by noon trading after reporting first-quarter fiscal 2027 results on Thursday. PagerDuty popped up about 9% after beating estimates for its second quarter fiscal 2027 and announcing plans to cut about 15% of its workforce. Meanwhile, the iShares Expanded Tech-Software Sector ETF inched down 0.7% but has gained over 20% in the past month. ServiceNow shares rose 3.5%, with CFO Gina Mastantuono citing $500 million in AI efficiencies this year and an AI business crossing $1 billion in Q2. Cybersecurity stocks were mostly in the red, led by Rubrik sinking 11% despite strong Q2 results, while SentinelOne dropped 8.5% and Palo Alto Networks slid 4%.
Enterprise Software Stocks Surge on AI-Driven Earnings
Shares of Twilio, Palantir Technologies, Zoom, PagerDuty, and nCino soared in afternoon trading after quarterly earnings and upbeat commentary signaled that artificial intelligence is driving growth across enterprise software rather than threatening legacy business models. The sector-wide rally, highlighted by a 20% surge in Salesforce, eased fears that AI would disrupt traditional platforms, with reports from Salesforce, CrowdStrike, and Okta showing AI as a catalyst for adoption and monetization. Salesforce's Agentforce annual recurring revenue reached $1.5 billion, and Slackbot surpassed 1 million active users in five months. CrowdStrike CEO George Kurtz cited AI's expansion of the attack surface as driving security demand, while Okta's AI-focused offerings contributed about 30% of new bookings and increased average contract values by roughly 40%. Among the movers, Twilio jumped 5.1%, Palantir rose 4.8%, Zoom gained 6.3%, PagerDuty climbed 4.4%, and nCino advanced 6.4%, with nCino trading at $23.30, down 28.7% from its 52-week high of $32.69.
Enterprise Software Stocks Rally as Investors Rotate Out of Chips
Salesforce, Workday, and PagerDuty all jumped over 4% in afternoon trading as investors rotated into oversold enterprise software names amid profit-taking in semiconductor stocks. ServiceNow surged 4.3% and Salesforce climbed 2.4% while the Nasdaq retreated and Micron fell 4%. The shift reflects a broader rotation from AI infrastructure to application-layer software, fueled by evidence that incumbents like ServiceNow and Salesforce are successfully monetizing AI through premium add-ons rather than facing cannibalization. PagerDuty, which is down 12.5% year-to-date and trading 36.9% below its 52-week high, was among the beneficiaries of the renewed appetite for beaten-down software stocks.
Cloud & Digital Infrastructure › Horizontal SaaS ▲Pricing
Artificial Intelligence › AI Applications & Copilots ▲Pricing
NOW · Demand · Positive ServiceNow surged 4.3% and is cited as an incumbent successfully monetizing AI through premium add-ons.
CRM · Demand · Positive Article highlights Salesforce is successfully monetizing AI through premium add-ons, driving rotation into enterprise software.
PD · · Positive PagerDuty rose over 4% as a beneficiary of rotation into beaten-down software stocks, but no company-specific catalyst.
WDAY · · Positive Workday jumped over 4% as part of the sector rotation, but no company-specific news.
MU · Capital · Negative Micron fell 4% as investors rotated out of semiconductor stocks, but the article does not specify a company-specific cause.
StockStory flags PagerDuty, Hershey, Marriott as cash-rich but risky
StockStory identifies PagerDuty, Hershey, and Marriott as cash-producing companies that may underperform. PagerDuty, with a trailing 12-month free cash flow margin of 23.3%, saw average billings growth of just 1.1% over the last year and faces flat estimated sales and a 5.7 percentage point contraction in free cash flow margin. Hershey, at a 16.1% margin, has struggled with falling unit sales, a 6.3 percentage point drop in operating margin, and a 9.8% annual decline in earnings per share over three years. Marriott, at a 10.6% margin, shows weak revenue per room and no expected free cash flow margin growth, though returns on capital are improving.
Four Top-Ranked Tech Stocks Under $20 Poised for Gains in Second Half of 2026
Zacks Investment Research highlights four technology stocks trading below $20 per share that are well-positioned for growth in the second half of 2026, each carrying a Zacks Rank of #1 (Strong Buy) or #2 (Buy). Unisys, priced at $3.75, saw its 2026 earnings estimate rise 21.3% to 74 cents per share over the past 60 days, supported by a 45% surge in first-quarter new business total contract value and an expanded backlog of $2.96 billion. Daktronics, at $19.91, reported record fiscal 2026 sales of $838.7 million and a $356.2 million backlog, with its fiscal 2027 earnings estimate edging up 0.8% to $1.21 per share. PagerDuty, trading at $9.98, raised its full-year fiscal 2027 non-GAAP EPS guidance to $1.27-$1.32 and announced a $100 million share repurchase program, while its fiscal 2027 earnings estimate climbed 4% to $1.30 per share. RF Industries, at $17.81, posted fiscal second-quarter bookings of $26.3 million and a backlog of $20 million, with its fiscal 2026 earnings estimate rising 19% to 69 cents per share, aided by inclusion in the Russell 3000 Index.
PagerDuty and Samsara Shares Jump 3.8% as US-Iran De-escalation Eases Macro Fears
PagerDuty and Samsara shares each rose 3.8% after the United States and Iran agreed to halt military exchanges, easing fears of a wider Middle East conflict. The de-escalation lifted risk assets by reducing oil-driven inflation pressures that had raised expectations of a Federal Reserve rate hike, benefiting long-duration growth software stocks. The move also built on a chip-to-software rotation sparked by a June 25 report that OpenAI may delay its IPO, which softened fears that AI labs would quickly cannibalize incumbent SaaS companies. PagerDuty, a cloud monitoring firm, remains down 24.2% year-to-date at $9.39 per share, trading 45.3% below its 52-week high of $17.17 from September 2025.
PagerDuty Stock Holds Zacks Rank #2 and Value Grade of A
PagerDuty currently holds a Zacks Rank #2 (Buy) and a Value grade of A. The stock trades with a P/E ratio of 15.36, well below its industry average of 25.03. Its forward P/E has ranged from 13.23 to 28.68 over the past year, with a median of 20.09. PagerDuty also has a P/S ratio of 1.39, compared to the industry average of 2.64. These metrics suggest the stock may be undervalued, supported by a strong earnings outlook.
Tenable, PagerDuty, and HubSpot Shares Fall Amid AI-Driven Software Selloff
Shares of Tenable, PagerDuty, and HubSpot declined in afternoon trading as a broader selloff hit communication-services and software stocks, triggered by high-profile AI talent departures from Alphabet and regulatory concerns. Alphabet fell roughly 6% and Microsoft also slipped, dragging sector indices lower, while persistent fears that AI agents could erode traditional enterprise software subscription models compounded the pressure. The previous week's near-20% single-day drop in Accenture, after the consulting giant cut its growth outlook citing AI compressing demand for IT services, reinforced the thesis that AI is disrupting the software industry. Tenable fell 2.5%, PagerDuty fell 3%, and HubSpot fell 2.7% as the market priced in cannibalization risks, though some analysts argue the selling has become indiscriminate, pointing to Salesforce's AI revenue growth and buyback program. PagerDuty, which is down 33.9% year-to-date and trading 52.3% below its 52-week high, has been particularly volatile, with 28 moves greater than 5% over the past year.
PagerDuty Appoints Eric Prengel as Chief Financial Officer
PagerDuty has appointed Eric Prengel as its new Chief Financial Officer, succeeding Howard Wilson who is retiring before the end of the second quarter of fiscal 2027. Prengel will oversee finance, accounting, global business operations, corporate strategy, corporate development, and investor relations. He brings more than 20 years of leadership experience from roles at Elastic, JPMorgan, Deutsche Bank, Thomas Weisel Partners, and Stern Stewart & Co. CEO John DiLullo highlighted Prengel’s combination of operational discipline and strategic mindset as key to driving long-term shareholder value.
Datadog posts strongest Q1 results among cloud monitoring peers
Datadog reported first-quarter revenues of $1.01 billion, up 32.2% year on year and beating analyst estimates by 4.9%, making it the top performer in a group of four cloud monitoring stocks that collectively exceeded revenue consensus by 2.7%. The company added 240 enterprise customers paying more than $100,000 annually to reach a total of 4,550, and its stock has risen 58% since the report. Among peers, Dynatrace posted revenues of $531.7 million, up 19.4% and 2.1% above estimates, while Nutanix grew 10% to $703.1 million, exceeding expectations by 2.4% but delivering the weakest guidance update. PagerDuty reported flat revenues of $121 million, topping estimates by 1.2% but missing significantly on next-quarter EPS guidance and recording the slowest growth and weakest full-year outlook in the group.
Cloud & Digital Infrastructure › Observability & DevOps ▲Competition
DDOG · Capital · Positive Datadog reported Q1 revenues of $1.01B, up 32.2% YoY and beating estimates by 4.9%, with strong enterprise customer growth.
DT · Capital · Positive Dynatrace posted revenues of $531.7M, up 19.4% and 2.1% above estimates, but is not the main subject.
PD · Capital · Negative PagerDuty reported flat revenues of $121M, topping estimates by 1.2% but missing significantly on next-quarter EPS guidance and recording the slowest growth and weakest outlook.
NTNX · Capital · Neutral Nutanix grew 10% to $703.1M, exceeding expectations by 2.4% but delivered the weakest guidance update.
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