Key Highlights

  • PagerDuty (NYSE:PD) has gained 152.30% over six months and 57.20% over three months, published market data shows, with the price at USD 15.39 and a market cap of USD 1.21 billion.
  • The screener lists a P/E of 7.7 and a price to sales ratio of 2.5, with second quarter fiscal 2027 Revenue of USD 124.4 million growing just 0.8% year over year.
  • Free Cash Flow was USD 32.8 million and the non-GAAP Operating Margin was 23.7% in the quarter reported August 27, 2026, with annual Recurring Revenue topping USD 500 million.
  • Fiscal 2027 guidance is revenue of USD 491.5 million to USD 496.5 million and non-GAAP EPS of USD 1.33 to USD 1.37, which makes the question whether growth can restart.

Second Quarter Reported August 27, 2026

PagerDuty (NYSE:PD) announced second quarter fiscal 2027 results on August 27, 2026. Revenue was USD 124.4 million, up 0.8% year over year, above the high end of its own guidance range according to CEO John DiLullo. Annual recurring revenue was USD 501 million. GAAP Net Income was USD 4.7 million, or USD 0.06 per diluted share, the fifth consecutive profitable quarter. Non-GAAP Operating Income was USD 29.5 million, a 23.7% margin, and non-GAAP EPS was USD 0.32. Operating Cash Flow was USD 36.9 million, free cash flow was USD 32.8 million, and cash and investments totaled USD 470 million. The company has now crossed USD 500 million in annual recurring revenue.

Guidance, Buybacks and the Rally

For the third quarter, PagerDuty guided revenue of USD 123.0 million to USD 125.0 million and non-GAAP EPS of USD 0.34 to USD 0.36. For fiscal 2027 it guided revenue of USD 491.5 million to USD 496.5 million, a non-GAAP operating margin of 25.0% to 26.0% and non-GAAP EPS of USD 1.33 to USD 1.37. The company also raised its full-year outlook. Published commentary noted USD 100 million of buybacks so far in 2026. Shares were also reported to have jumped on May 3, 2026 amid unconfirmed activist investor rumors, when they traded near USD 7. At USD 15.39, PagerDuty (NYSE:PD) has more than doubled from that level, by simple arithmetic.

Stalled Growth and What to Watch

Cheap multiples reflect a growth problem. Revenue grew less than 1% in the latest quarter, and published commentary put dollar-based net retention near 98%, which means existing customers are spending slightly less in aggregate. Management is betting that AI-driven automation creates more incidents to manage, but no revenue proof has been reported yet. On the midpoint of non-GAAP EPS guidance of USD 1.35, the stock trades near 11 times, by simple arithmetic. The company is small, with a USD 1.21 billion market cap, so share moves can be sharp. Rivals with larger platforms could also pressure pricing. Upcoming: third quarter fiscal 2027 results, with the date to be announced.

Where Things Stand

PagerDuty (NYSE:PD) rallied because profit and cash flow improved while the stock started from a very low base. The 152.30% six-month gain came with flat revenue, so the move rests on margins, buybacks and Takeover speculation rather than growth. A P/E of 7.7 is low, but only a return to growth would justify a durable rerating. Figures are published market data as of October 7, 2026: price USD 15.39, market cap USD 1.21 billion, three-month gain 57.20%.