PagerDuty (NYSE:PD) Updates Q3 2027 Earnings Guidance

Key Points

• PagerDuty raised its Q3 FY2027 EPS guidance to $0.340–$0.360, above the $0.310 analyst consensus. Revenue guidance of $123.0 million–$125.0 million broadly aligns with the $124.2 million consensus estimate.
• The company also reaffirmed FY2027 EPS guidance of $1.330–$1.370 and recently reported quarterly EPS of $0.32 and revenue of $124.44 million, both slightly ahead of expectations.
• PagerDuty’s shares rose 3.8% to $12.66, while its board authorized a $100 million share repurchase program covering up to 16.4% of outstanding shares. Analysts remain cautious overall, with a consensus rating of “Hold” and a $12.28 price target.

PagerDuty (NYSE:PD - Get Free Report) updated its third quarter 2027 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 0.340-0.360 for the period, compared to the consensus earnings per share estimate of 0.310. The company issued revenue guidance of $123.0 million-$125.0 million, compared to the consensus revenue estimate of $124.2 million. PagerDuty also updated its FY 2027 guidance to 1.330-1.370 EPS.

PagerDuty Trading Up 3.8%

NYSE:PD traded up $0.47 during mid-day trading on Thursday, hitting $12.66. 1,729,692 shares of the company's stock were exchanged, compared to its average volume of 2,459,784. The company has a 50 day simple moving average of $10.49 and a 200-day simple moving average of $8.37. 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 fifty-two week low of $5.70 and a fifty-two week high of $17.29. The firm has a market capitalization of $976.30 million, a P/E ratio of 6.21, a PEG ratio of 3.14 and a beta of 0.93.

PagerDuty (NYSE:PD - Get Free Report) last issued its quarterly earnings results on Thursday, August 27th. The company reported $0.32 earnings per share for the quarter, topping analysts' consensus estimates of $0.31 by $0.01. PagerDuty had a return on equity of 18.20% and a net margin of 38.60%.The firm had revenue of $124.44 million during the quarter, compared to the consensus estimate of $123.27 million. PagerDuty has set its FY 2027 guidance at 1.330-1.370 EPS and its Q3 2027 guidance at 0.340-0.360 EPS. As a group, research analysts expect that PagerDuty will post 0.58 earnings per share for the current year.

PagerDuty announced that its board has initiated a share repurchase program on Thursday, May 28th that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the company to reacquire up to 16.4% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the company. Royal Bank Of Canada raised their price target on PagerDuty from $9.00 to $12.00 and gave the stock a "sector perform" rating in a report on Friday, August 14th. Wall Street Zen cut shares of PagerDuty from a "buy" rating to a "hold" rating in a research report on Saturday, July 25th. Canaccord Genuity Group upped their target price on shares of PagerDuty from $9.00 to $10.00 and gave the stock a "buy" rating in a research report on Friday, May 29th. Morgan Stanley downgraded PagerDuty from an "equal weight" rating to an "underweight" rating and decreased their price objective for the stock from $10.00 to $9.00 in a report on Tuesday, July 21st. Finally, UBS Group set a $13.50 price target on PagerDuty in a research note on Wednesday. Three research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $12.28.

Institutional Trading of PagerDuty

Hedge funds have recently bought and sold shares of the company. Ameriprise Financial Inc. grew its stake in shares of PagerDuty by 333.2% in the third quarter. Ameriprise Financial Inc. now owns 1,450,429 shares of the company's stock valued at $23,961,000 after buying an additional 1,115,577 shares in the last quarter. Alyeska Investment Group L.P. purchased a new stake in shares of PagerDuty during the 3rd quarter valued at about $13,710,000. Danske Bank A S acquired a new position in PagerDuty during the 3rd quarter worth approximately $13,271,000. Jacobs Levy Equity Management Inc. acquired a new position in PagerDuty during the 4th quarter worth approximately $9,910,000. Finally, Two Sigma Investments LP boosted its holdings in PagerDuty by 184.1% in the 3rd quarter. Two Sigma Investments LP now owns 855,831 shares of the company's stock worth $14,138,000 after acquiring an additional 554,611 shares during the period. Hedge funds and other institutional investors own 97.26% of the company's stock.

PagerDuty Company Profile

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.

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