PagerDuty Q4 Results Beat Expectations, but Weak Revenue Guidance Causes Stock to Plummet 10%

LootboxPhobia · 2026-03-12T20:39:26+00:00

PagerDuty's fourth quarter results exceeded expectations, with adjusted earnings per share of $0.29 and revenue of $124.8 million, both surpassing analyst expectations. However, the company's fiscal 2027 revenue guidance fell short of market expectations, triggering a stock price plunge of 10.5%. The company also expects first quarter revenue to fall below expectations, with the chairman stating that fiscal 2026 will be a transformation year.

LootboxPhobia

2026-03-12 20:39:26

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San Francisco - PagerDuty, Inc. (NYSE: PD) reported Q4 earnings that exceeded analyst expectations, but the stock plummeted 10.5% due to the company’s FY2027 revenue guidance falling below Wall Street estimates.

The AI-first operations management company posted adjusted Q4 earnings of $0.29 per share, beating the consensus estimate of $0.24 by $0.05. Revenue reached $124.8 million, up 2.7% year-over-year, surpassing the analyst consensus of $123.15 million.

However, the company’s FY2027 revenue guidance of $488.5 million to $496.5 million, with a midpoint of $492.5 million, disappointed investors, significantly below the consensus estimate of $506.9 million.

For Q1 FY2027, PagerDuty expects revenue of $118.0 million to $120.0 million, with a midpoint of $119.0 million, also below expectations. The company guided for adjusted Q1 earnings of $0.23 to $0.25 per share, and full-year earnings of $1.23 to $1.28, compared to the consensus of $1.19.

“FY2026 was a transformative year for PagerDuty, with revenue retention stabilizing, revenue reaching $493 million at the upper end of guidance, and non-GAAP operating profit margin expanding by 700 basis points,” said Chairman and CEO Jennifer Tejada.

The company reported adjusted Q4 operating income of $29.8 million, with a margin of 23.9%. Annual recurring revenue grew 1% year-over-year to $498.7 million, and dollar-based net retention rate was 98%, down from 106% last year.

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