| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 74 | 6.9x | 17.8x | Top tier | |
Growth | 70 | 2.3% | 7.1% | Top tier | |
Quality | 92 | 28.0% | 4.5% | Top tier | |
Safety | 55 | — | 2.6x | Around median | |
Capital Return | 79 | — | 2.12% | Top tier | |
Momentum | 68 | -31.3% | 2.9% | Top tier | |
Sentiment | 62 | 6 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
PagerDuty provides a platform for managing the reliability of digital operations and critical systems, serving more than 15 thousand paying customers, including nearly two-thirds of Fortune 100 companies. The company generates revenue from incident management, AIOps, automation, and analytics solutions, and is moving toward a usage-based model through PD Reliability Platform, the name under which Operations Cloud will launch upon general availability in fall 2026. The company places the autonomous SRE agent at the heart of the platform to read operational data, leverage knowledge from past incidents, detect disruptions, and assist with investigation and remediation.
Revenue for fiscal Q2 2027 was approximately $124.4 million, up 1% year over year and above the high end of management's guidance, with international revenue accounting for nearly 30% of the total. EDGAR data shows gross profit of $104.4 million, equivalent to a calculated gross margin of approximately 83.9%, net income of $7.8 million, and earnings per share of $0.06. Management reported, according to its non-GAAP measures, a gross margin of 85% and operating income of $29.5 million, equivalent to an operating margin of 24%.
PagerDuty ended fiscal Q2 2027 with annual recurring revenue of $501 million, after adding $6 million during the quarter and surpassing the $500 million threshold for the first time. Dollar-based net retention was 98%, while the number of customers spending more than $100 thousand annually rose to 884, an increase of 24 customers from the previous quarter. The company generated $37 million in operating cash flow and $33 million in free cash flow, with a free cash flow margin of 26%.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on PD stock is neutral, with an average price target of $12.5 and a wide range extending from $9 to $15. Both the average target and the highest target are below the 52-week range high of $17.29, while the annual range extends to a low of $5.7, reflecting a significant revaluation and divergence consistent with 1% revenue growth and guidance for nearly zero annual growth. The available data does not provide a price-to-earnings multiple, so the valuation assessment is based on analyst targets and the 52-week range, weighed against improving margins and cash flows on one side and weak revenue growth on the other.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
PagerDuty is relying on increased usage of Operations Cloud, which will launch as PD Reliability Platform upon general availability in fall 2026, and on expanding sales of the SRE agent, AIOps capabilities, and automation. The Operations Cloud business grew at a double-digit rate on an overall basis in fiscal Q2 2027, and annual recurring revenue increased by $6 million to $501 million. The number of customers spending more than $100 thousand annually also increased by 24 to 884, but quarterly revenue growth remained at only 1%.
PD Reliability Platform places the autonomous SRE agent at the center of a platform that combines agents and humans to detect, investigate, and remediate incidents. The agent leverages the customer's knowledge base, production operational data, and accumulated memory from past incidents, alongside machine-learning-based signal detection. In fiscal Q2 2027, the company launched upgrades to the SRE agent, incident lifecycle integration, and an on-call management solution, and cited integrations with Anthropic, Cursor, and LangChain.
Revenue was $124.4 million and gross profit according to EDGAR was approximately $104.4 million, equivalent to a calculated margin of approximately 83.9%. Management reported a non-GAAP gross margin of 85% and a non-GAAP operating margin of 24%, while EDGAR data showed net income of $7.8 million and earnings per share of $0.06. The company raised its fiscal 2027 non-GAAP operating margin guidance to 25%–26%, with a long-term target of 30%.
Dollar-based net retention was 98% in fiscal Q2 2027, up sequentially, while gross retention also improved for the second consecutive quarter. The improvement indicates relative stabilization, but the rate remaining below 100% means aggregate spending by existing customers did not fully offset contraction. Management is betting on the usage model and artificial intelligence capabilities to improve platform stickiness and reduce the impact of historical seat pressures.
The restructuring announced in August 2026 affected approximately 15% of the workforce, with reductions concentrated in non-customer-facing roles while preserving sales and product development capabilities. The company expects costs of between $5.5 million and $7.5 million, most of which will be recognized in Q3, with the process largely completed by the end of fiscal Q4 2027. Management linked the savings to raising its annual non-GAAP operating margin guidance to 25%–26% and expecting a free cash flow margin comparable to fiscal 2026.
The aggregate analyst rating is neutral, with an average price target of $12.5, a low target of $9, and a high target of $15. Both the average and the high end of the targets are below the 52-week range high of $17.29, while the range low is $5.7. This dispersion reflects the market's balance between improving margins and cash flows and 1% revenue growth alongside fiscal 2027 guidance indicating approximately flat annual performance.
