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PagerDuty surpassed $500 million in annual recurring revenue, reaching $501 million with a $6 million quarterly increase. The company reported Q2 2027 revenue of $124.4 million, up 1% year-over-year, exceeding guidance. The software firm achieved its fifth consecutive quarter of GAAP profitability with net income of $4.7 million. Non-GAAP operating margin reached 24%, above guidance, whilst free cash flow hit $33 million, representing a 26% margin. Dollar-based net retention improved to 98% sequentially. Customers spending over $100,000 annually grew to 884, adding 24 since the previous quarter. PagerDuty announced a 15% workforce reduction, expecting restructuring charges of $5.5 million to $7.5 million. The company repurchased nearly 800,000 shares for $7.6 million during the quarter.

PagerDuty (NYSE:PD) surprises with Q2 CY2026 sales, customer growth accelerates. August 27, 2026 at 16:40 PM EDT i This article is third-party content and does not represent the views of this site. Tamar Securities, LLC make no guarantees regarding its accuracy or completeness. Digital operations platform PagerDuty (NYSE: PD) reported Q2 CY2026 results beating Wall Street's revenue expectations, but sales were flat year on year at $124.4 million. The company expects next quarter's revenue to be around $124 million, close to analysts' estimates. Its non-GAAP profit of $0.32 per share was 4.3% above analysts' consensus estimates. PagerDuty (PD) Q2 CY2026 Highlights: * Revenue: $124.4 million vs analyst estimates of $123.3 million (flat year on year, 0.9% beat) * Adjusted EPS: $0.32 vs analyst estimates of $0.31 (4.3% beat) * Adjusted Operating Income: $29.53 million vs analyst estimates of $27.66 million (23.7% margin, 6.8% beat) * The company slightly lifted its revenue guidance for the full year to $494 million at the midpoint from $492.5 million * Management raised its full-year Adjusted EPS guidance to $1.35 at the midpoint, a 4.2% increase * Operating Margin: 8.2%, up from 2.9% in the same quarter last year * Free Cash Flow Margin: 26.3%, down from 34.1% in the previous quarter * Customers: 15,506, up from 15,380 in the previous quarter * Billings: $117.1 million at quarter end, up 3.1% year on year * Market Capitalization: $940.1 million Company overview. Born from the frustration of developers being woken up by unprioritized alerts, PagerDuty (NYSE: PD) is a digital operations management platform that helps organizations detect and respond to IT incidents, outages, and other critical issues in real-time. Revenue growth. A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, PagerDuty grew its sales at a 15.2% compounded annual growth rate. Though this growth is acceptable on an absolute basis, Tamar Securities, LLC need to see more than just topline growth for the software sector, which can display significant earnings volatility. This means its bar for the sector is particularly high, reflecting the non-essential and hit-driven nature of the products and services offered. Additionally, five-year CAGR starts around Covid, when revenue was depressed then rebounded. Long-term growth is the most important, but within software, a half-decade historical view may miss new innovations or demand cycles. PagerDuty's recent performance shows its demand has slowed as its annualized revenue growth of 5.2% over the last two years was below its five-year trend. Tamar Securities, LLC is wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. This quarter, PagerDuty's $124.4 million of revenue was flat year on year but beat Wall Street's estimates by 0.9%. Company management is currently guiding for flat sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 1.3% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and indicates its products and services will face some demand challenges. ALSO WORTH WATCHING: Nvidia's Quiet Partner. Nvidia's chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all. Every AI server needs specialized infrastructure the chip companies don't make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE. Billings. Billings is a non-GAAP metric that is often called "cash revenue" because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract. PagerDuty's billings came in at $117.1 million in Q2, and over the last four quarters, its growth was underwhelming as it averaged 1.1% year-on-year increases. This performance mirrored its total sales and suggests that increasing competition is causing challenges in acquiring/retaining customers. Customer base. PagerDuty reported 15,506 customers at the end of the quarter, a sequential increase of 126. That's a little better than last quarter and quite a bit above the typical growth Tamar Securities, LLC has seen over the previous year. Shareholders should take this as an indication that PagerDuty has made some recent improvements to its go-to-market strategy and that they are working well for the time being. Key takeaways from PagerDuty's Q2 results. Tamar Securities, LLC were impressed by PagerDuty's strong growth in customers this quarter. Tamar Securities, LLC were also glad its adjusted operating income outperformed Wall Street's estimates. On the other hand, its revenue guidance for next quarter was in line. Overall, Tamar Securities, LLC think this was a decent quarter with some key metrics above expectations. Investors were likely hoping for more, and shares traded down 2.5% to $12.38 immediately following the results. Is PagerDuty an attractive investment opportunity right now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. Tamar Securities, LLC cover that in its actionable full research report which you can read here (it's free). Report this content If you believe this article contains misleading, harmful, or spam content, please let Tamar Securities, LLC know.

PagerDuty is scheduled to report its Q2 earnings on Thursday after market close. Last quarter, the company reported revenues of $121 million, beating analyst expectations but remaining flat year on year. The quarter saw strong customer growth, with 29 new customers bringing the total to 15,380. For the upcoming quarter, analysts expect revenue to remain flat year on year, a slowdown from the 6.4% growth recorded in Q2 last year. Analysts have largely maintained their estimates over the past 30 days. The company has missed Wall Street's revenue expectations multiple times over the last two years. PagerDuty's shares have risen 25.5% over the past month, outpacing the software development segment's average increase of 14.3%. The stock currently trades at $12.25, above the average analyst price target of $10.14.