PagerDuty (NYSE:PD) Updates FY 2027 Earnings Guidance

PagerDuty (NYSE:PD) issued an update on 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 earnings per share 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.

PagerDuty Stock Performance

Shares of NYSE:PD opened at $13.80 on Friday. The company has a current ratio of 1.95, a quick ratio of 1.95 and a debt-to-equity ratio of 1.83. PagerDuty has a 12 month low of $5.70 and a 12 month high of $17.29. The company has a market capitalization of $1.06 billion, a price-to-earnings ratio of 6.90, a PEG ratio of 3.24 and a beta of 0.93. The firm’s 50-day moving average is $10.68 and its 200 day moving average is $8.44.

PagerDuty (NYSE:PD) last announced its earnings results on Thursday, August 27th. The company reported $0.32 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.32. The business had revenue of $124.44 million during the quarter, compared to analyst estimates of $124.22 million. PagerDuty had a return on equity of 17.97% and a net margin of 37.50%.The company’s revenue for the quarter was up .8% compared to the same quarter last year. During the same quarter in the previous 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 EPS for the current year.

PagerDuty declared that its board has initiated a share buyback plan on Thursday, May 28th that allows the company to buyback $100.00 million in shares. This buyback authorization allows the company to buy up to 16.4% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s leadership believes its shares are undervalued.

Wall Street Analysts Forecast Growth

PD has been the topic of several recent analyst reports. UBS Group set a $13.50 price target on shares of PagerDuty in a research note on Wednesday. Morgan Stanley boosted their price objective on shares of PagerDuty from $9.00 to $10.00 and gave the company an “underweight” rating in a research report on Friday. Royal Bank Of Canada upped their target price on shares of PagerDuty from $9.00 to $12.00 and gave the stock a “sector perform” rating in a research note on Friday, August 14th. TD Cowen reissued a “buy” rating on shares of PagerDuty in a research note on Wednesday. Finally, Wall Street Zen lowered PagerDuty from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. Three research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, PagerDuty has a consensus rating of “Hold” and a consensus target price of $12.94.

Key Headlines Impacting PagerDuty

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 and revenue of $124.44 million, ahead of expectations for $123.27 million. Revenue increased 0.8% year over year. PagerDuty Q2 Earnings Results
• Positive Sentiment: Management raised its earnings outlook. Fiscal 2027 EPS guidance of $1.33 to $1.37 is well above the $1.17 analyst consensus, while third-quarter EPS guidance of $0.34 to $0.36 also exceeds expectations. Full-year revenue guidance of $491.5 million to $496.5 million is broadly in line with estimates. PagerDuty Guidance Update
• Positive Sentiment: Cost reductions are supporting margins. PagerDuty plans to cut approximately 15% of its workforce and forecast third-quarter operating margins of 26.5% to 27.5%. Investors appear to be viewing the restructuring as a way to accelerate profitable growth. The company also highlighted more than $500 million in annual recurring revenue and $33 million in quarterly free cash flow. PagerDuty Margin Forecast and Restructuring
• Positive Sentiment: Canaccord Genuity upgraded its valuation view. The firm raised its price target from $10 to $15 and maintained a Buy rating, providing additional support for the stock’s advance. Canaccord Raises PagerDuty Price Target
• Neutral Sentiment: Analyst opinion remains mixed. Monness analyst Brian White reiterated a Hold rating, citing sluggish demand and mixed fundamentals. This suggests investors may question whether the improved profitability can be sustained if growth remains limited. PagerDuty Hold Rating

Hedge Funds Weigh In On PagerDuty

A number of large investors have recently bought and sold shares of PD. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in PagerDuty by 1.3% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 51,601 shares of the company’s stock valued at $943,000 after acquiring an additional 671 shares in the last quarter. California State Teachers Retirement System boosted its position in shares of PagerDuty by 1.4% in the 2nd quarter. California State Teachers Retirement System now owns 81,474 shares of the company’s stock worth $1,245,000 after purchasing an additional 1,129 shares in the last quarter. Loomis Sayles & Co. L P increased its stake in PagerDuty by 0.3% during the 4th quarter. Loomis Sayles & Co. L P now owns 1,092,963 shares of the company’s stock valued at $14,329,000 after purchasing an additional 3,276 shares in the last quarter. Alliancebernstein L.P. lifted its position in PagerDuty by 4.1% during the 3rd quarter. Alliancebernstein L.P. now owns 95,302 shares of the company’s stock worth $1,574,000 after acquiring an additional 3,784 shares during the period. Finally, Swiss National Bank increased its holdings in shares of PagerDuty by 2.3% in the third quarter. Swiss National Bank now owns 169,700 shares of the company’s stock valued at $2,803,000 after purchasing an additional 3,800 shares during the period. Institutional investors own 97.26% of the company’s stock.

About PagerDuty

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.