NYSE$PD

PagerDuty Inc · Q2 2026 earnings

Q2 2026 earnings · · After market close · Investor relations

Briefing

PagerDuty posted a profitable Q2 FY2026, with growing revenue, strong cash flow, and solid expansion in enterprise ARR.

PagerDuty achieved GAAP profitability in Q2 FY2026, with revenue of $123.4 million and strong free cash flow. The company continues to grow its ARR base and expand its presence in the enterprise market, supported by its AI-driven platform.

  • Achieved GAAP net income of $9.8M for the quarter.
  • Revenue rose to $123.4M, a 6.4% increase YoY.
  • Non-GAAP EPS reached $0.30, reflecting solid operational leverage.
  • Free cash flow came in at $30.2M with a margin of 24.5%.

Headline financials

Total Revenue

$123M

Previous: $116M+6.4%
EPS

$0.10

Previous: -$0.14+171.4%
Annual Recurring Revenue

$499M

No prior period
Customers w/ ARR > $100K

868

Previous: 820+5.9%
Net Retention Rate

102.0%

Previous: 106.0%-3.8%
Paid Customers

15.3K

Previous: 15.0K+1.8%
All Customers

33.0K

No prior period
Remaining Performance Oblig.

$425M

No prior period
Capital Expenditures

-$1.32M

Previous: -$1.09M-20.2%
Free Cash Flow

$8.26M

Previous: -$12M+168.8%
Net Income

$9.58M

Previous: -$10.9M+187.7%
Operating Income

$3.57M

Previous: -$16M+122.2%
Gross Profit

$104M

Previous: $95.9M+8.9%
Cash & Equivalents

$340M

Previous: $386M-11.9%
Total Assets

$892M

Previous: $916M-2.7%

Revenue & EPS history

PagerDuty · Revenue · Quarterly

$123M

Q2 2026+6.4%vs Q2 2025
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

PagerDuty expects Q3 FY2026 revenue of $124M–$126M and raised its full-year non-GAAP EPS outlook, showing confidence in profitability and revenue growth despite macro pressures.

Tailwinds

  • Q3 revenue guidance of $124M–$126M, up 4%–6% YoY.
  • FY26 revenue guidance reaffirmed at $493M–$497M.
  • FY26 non-GAAP EPS guidance raised to $1.00–$1.04.
  • 94 million diluted shares projected for FY26 EPS calculation.
  • Company expects continued strength in AI-powered platform adoption.

Headwinds

  • Dollar-based net retention rate declined from 106% to 102%.
  • Deferred revenue declined sequentially to $227M.
  • Q3 revenue growth expected to be moderate (4%–6%).
  • Operating cash flow margin slightly down YoY.
  • Competition and macroeconomic factors may impact growth trajectory.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2026

Historical avgQ2 2026

-1.1%

Avg return

Earnings day

-0.3%

Avg return

5 days after

-0.1%

Avg return

30 days after

43%

12 / 28 earnings

Positive

+30.9%

Q4 2022

Best reaction

-29.1%

Q2 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027
Q4 2026-3.0%-4.1%-21.2%
Q3 2026-23.5%-22.1%-13.3%
Q2 2026+6.2%+6.7%+2.8%
Q1 2026-11.3%-5.6%-5.4%
Q4 2025+17.7%+20.7%-0.9%
Q3 2025+1.7%+2.9%-11.3%
Q2 2025-8.6%-10.1%-10.9%
Q1 2025-2.4%-0.4%+18.0%
Q4 2024-9.1%-5.3%-5.4%
Q3 2024-1.2%-1.3%+5.2%
Q2 2024-7.3%-6.6%-12.3%
Q1 2024-15.5%-15.8%-17.4%
Q4 2023+14.7%+12.3%+19.4%
Q3 2023+6.4%+0.3%+19.4%
Q2 2023-9.7%-11.4%-11.4%
Q1 2023+2.4%+9.8%+0.1%
Q4 2022+30.9%+41.4%+31.6%
Q3 2022+17.9%+9.1%+0.1%
Q2 2022+8.2%+7.5%-3.4%
Q1 2022-15.9%-7.4%+0.4%
Q4 2021-8.3%+3.0%+3.2%
Q3 2021+19.1%+19.7%+21.6%
Q2 2021-29.1%-31.4%-24.6%
Q1 2021-7.2%-5.6%+6.0%
Q4 2020+23.4%+19.1%+40.0%
Q3 2020-15.0%-12.1%-5.0%
Q2 2020-14.6%-27.8%-27.2%
Q1 2020+2.8%+5.6%+0.2%
Q4 2019
Q3 2018
Q2 2018
Q1 2018
Q4 2017

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