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what it is
PagerDuty sells software that tells your team what broke, who should fix it, and how to stop the same mess again.
how it gets paid
Last year Pagerduty made $493M in revenue. Incident management was the main engine at $240M, or 49% of sales.
why it's growing
Revenue grew 5.4% last year. The company release showed fourth-quarter revenue up about 3% and full-year revenue of roughly $493 million.
what just happened
PagerDuty delivered $124.8M revenue in the latest quarter and posted its first full-year GAAP profit, but growth stayed slow.
At a glance
B balance sheet — gets the job done, barely
45/100 earnings predictability — expect surprises
7.7x trailing p/e — the market's not buying it — or you found a deal
-$0.59 fy2024 eps est
$468M fy2024 rev est
xvary composite: 48/100 — below average
What they do
PagerDuty sells software that tells your team what broke, who should fix it, and how to stop the same mess again.
When your payments system breaks at 2 a.m., you do not want a new vendor. You want the one already wired into your stack. PagerDuty says it serves more than 35,000 organizations, and its gross margin was 84.6% in fiscal 2026 (gross margin → money left after delivering the software → so what: this is sticky software, not low-value IT labor).
How they make money
$493M
annual revenue · their business grew +5.4% last year
Incident management
$240M
AIOps
$90M
Automation
$70M
Customer service operations
$63M
Term-license subscriptions
$30M
The products that matter
incident response software
Operations Cloud
35,000+ customers · core platform
this is the center of gravity. it sits under a business with $498.7M of ARR and over 35,000 customer organizations, which tells you adoption is broad even if growth is not.
nearly all revenue
workflow and automation tools
Automation
cross-sell matters more than size
this is the part that has to do the heavy lifting from here. with ARR up only 1%, any automation sell-through that does not lift expansion will stay a product story, not a stock story.
growth test
services and implementation
Professional Services
$20M · 4% mix
this is the small piece of the pie. at $20M and roughly 4% of segment mix, it helps customers onboard but it will not rescue growth on its own.
not the engine
Key numbers
-$0.59
fy2024 eps est
$468M
fy2024 rev est
7.7x
trailing p/e
84.6%
gross margin
Gross profit kept about 84.6% of each revenue dollar.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 15 / 100
- long-term debt $404M (40% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for PD right now.
source: institutional data · return history unavailable
What just happened
beat estimates
PagerDuty delivered $124.8M revenue in the latest quarter and posted its first full-year GAAP profit, but growth stayed slow.
The company release showed fourth-quarter revenue up about 3% and full-year revenue of roughly $493 million, up 5.4%. Yahoo lists last reported EPS at $0.10, while an EDGAR-derived figure in your source shows $1.73, so the clean takeaway is simpler: margins improved faster than sales.
$124.8M
revenue
$0.10
eps
84.6%
gross margin
the number that mattered
The number that mattered was 5.4% full-year revenue growth, because it says PagerDuty is now a margin story, not a fast-growth story.
source: company earnings report, 2026
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What could go wrong
the #1 risk is ARR stagnation in incident-response software.
med
growth is flirting with zero
ARR reached $498.7M, up just 1%, while the latest quarter's revenue grew 3%. when the core subscription engine slows this much, even a low valuation can turn into a value trap.
with subscription services making up roughly 96% of segment mix in the current data, this exposes nearly the whole business to weak expansion.
med
retention and pricing pressure show up fast in software math
86% gross margin looks great until customers push back on pricing or buy less. high-margin software models work beautifully on the way up and lose leverage quickly when customers hesitate.
a slowdown here would pressure the company far more than the small $20M professional services line could offset.
med
the AI platform may be real product work and still not move the stock
new AI features can improve the product without changing the revenue slope. that is the trap. investors need evidence of better expansion, not just better demos.
if AI adoption does not lift ARR above the current 1% pace, the market will keep treating PD like a stalled software name.
The bull case survives if margins keep rising. It breaks if 5.4% revenue growth slips closer to zero.
source: institutional data · regulatory filings · risk analysis
Pay attention to
arr growth
this is the number that decides whether the story is repairing
$498.7M of ARR growing 1% is not enough. if this starts moving meaningfully higher, the stock can re-rate. if it does not, the rest is decoration.
next earnings
q1 fy2027 is the next proof point
the latest quarter delivered $125M of revenue and a beat on EPS. your next check is whether growth stays stuck near 3% or finally improves.
ai and automation
watch adoption, not launch language
the AI platform only matters if it lifts customer expansion across a base of 35,000+ organizations. features are nice. measurable uptake is nicer.
debt and volatility
a $601M market cap with $404M of long-term debt needs cleaner execution
the balance sheet is workable, but the stock's 15 / 100 price stability says you should expect drama while management tries to restart growth.
Analyst rankings
earnings predictability
45 / 100
in human-speak, analysts do not see this business as especially clean or easy to model.
risk rank
3
that means safer than roughly half of stocks. not a bunker stock, not a full chaos trade either.
source: institutional data
Institutional activity
institutional ownership data for PD is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$12
current price
n/a
target midpoint · n/a from current
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