Revenue growth has significantly contracted from 10.1% in 2024Q4 to 1.0% in 2027Q1, even as the company maintains a resilient 84.3% gross margin.
| Sales/Revenue | 493.71M | 492.55M | 467.5M | 430.7M | 370.79M | 281.4M | 213.56M | 166.35M | 117.82M | 79.63M |
| Revenue Growth % | 3.69% | 5.36% | 8.54% | 16.16% | 31.77% | 31.77% | 28.38% | 41.19% | 47.96% | - |
| Cost of Goods Sold | 73.98M | 74.14M | 79.67M | 77.83M | 70.43M | 48.36M | 30.69M | 24.58M | 17.25M | 12.72M |
| COGS % of Revenue | - | 15.05% | 17.04% | 18.07% | 19% | 17.19% | 14.37% | 14.78% | 14.64% | 15.97% |
| Gross Profit | 419.73M | 418.4M | 387.83M | 352.87M | 300.36M | 233.03M | 182.87M | 141.77M | 100.57M | 66.91M |
| Gross Margin % | 85.02% | 84.95% | 82.96% | 81.93% | 81% | 82.81% | 85.63% | 85.22% | 85.36% | 84.03% |
| Gross Profit Growth % | - | 7.88% | 9.91% | 17.48% | 28.89% | 27.43% | 28.99% | 40.97% | 50.3% | - |
| Operating Expenses | 394.38M | 412.56M | 447.61M | 449.11M | 429.74M | 334.75M | 249.15M | 197.33M | 142.89M | 105.23M |
| OpEx % of Revenue | - | 83.76% | 95.74% | 104.28% | 115.9% | 118.96% | 116.67% | 118.62% | 121.27% | 132.15% |
| Selling, General & Admin | 271.5M | 285.63M | 306.12M | 309.34M | 294.86M | 239.06M | 184.59M | 148.32M | 104.03M | 71.7M |
| SG&A % of Revenue | - | 57.99% | 65.48% | 71.82% | 79.52% | 84.95% | 86.43% | 89.16% | 88.29% | 90.04% |
| Research & Development | 122.88M | 126.94M | 141.49M | 139.77M | 134.88M | 95.69M | 64.57M | 49.01M | 38.86M | 33.53M |
| R&D % of Revenue | - | 25.77% | 30.27% | 32.45% | 36.38% | 34.01% | 30.23% | 29.46% | 32.98% | 42.11% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | -19K | -2.76M | -794K | 203K | 1.03M | 682K |
| Operating Income | 25.35M | 5.84M | -59.77M | -96.25M | -129.38M | -101.71M | -66.28M | -55.56M | -42.32M | -38.32M |
| Operating Margin % | 5.13% | 1.19% | -12.79% | -22.35% | -34.89% | -36.15% | -31.04% | -33.4% | -35.92% | -48.12% |
| Operating Income Growth % | - | 109.77% | 37.9% | 25.61% | -27.2% | -53.45% | -19.3% | -31.28% | -10.45% | - |
| EBITDA | 37.57M | 18.96M | -39.17M | -76.09M | -88.63M | -88.89M | -45.64M | -53.36M | -36.13M | -36.97M |
| EBITDA Margin % | 7.61% | 3.85% | -8.38% | -17.67% | -23.9% | -31.59% | -21.37% | -32.08% | -30.67% | -46.43% |
| EBITDA Growth % | 257.89% | 148.41% | 48.52% | 14.14% | 0.3% | -94.78% | 14.47% | -47.67% | 2.26% | - |
| D&A (Non-Cash Add-back) | 12.22M | 13.12M | 20.6M | 20.15M | 40.75M | 12.82M | 20.64M | 2.2M | 6.19M | 1.35M |
| EBIT | 39.38M | 5.84M | -35.12M | -72.96M | -126.47M | -103.33M | -63.55M | -49.66M | -40.04M | -37.26M |
| Net Interest Income | 13.85M | 13.84M | 20.86M | 15.6M | -668K | -2.45M | -5.73M | 5.69M | 1.25M | -331K |
| Interest Income | 20.61M | 22.69M | 27.49M | 22.1M | 4.76M | 2.95M | 4.23M | 5.69M | 1.25M | 371K |
| Interest Expense | 6.76M | 8.86M | 6.63M | 6.5M | 5.43M | 5.4M | 9.96M | 0 | 0 | 702K |
| Other Income/Expense | 12.31M | 14.32M | 18.02M | 18.87M | -687K | -5.21M | -6.53M | 5.89M | 2.28M | 351K |
| Pretax Income | 37.66M | 20.16M | -41.75M | -77.38M | -130.06M | -106.92M | -72.81M | -49.66M | -40.04M | -37.97M |
| Pretax Margin % | 7.63% | 4.09% | -8.93% | -17.97% | -35.08% | -38% | -34.09% | -29.85% | -33.98% | -47.68% |
| Income Tax | -147.56M | -152.54M | 1.78M | -12K | -839K | 535K | -3.91M | 675K | 701K | 184K |
| Effective Tax Rate % | -391.79% | -756.48% | -4.27% | 0.02% | 0.65% | -0.5% | 5.36% | -1.36% | -1.75% | -0.48% |
| Net Income | 187.46M | 173.85M | -42.73M | -81.76M | -129.22M | -107.45M | -68.9M | -50.34M | -40.74M | -38.15M |
| Net Margin % | 37.97% | 35.3% | -9.14% | -18.98% | -34.85% | -38.19% | -32.26% | -30.26% | -34.58% | -47.91% |
| Net Income Growth % | 672.27% | 506.82% | 47.73% | 36.73% | -20.26% | -55.95% | -36.88% | -23.56% | -6.79% | - |
| Net Income (Continuing) | 185.22M | 172.71M | -43.54M | -77.37M | -129.22M | -107.45M | -68.9M | -50.34M | -40.74M | -38.15M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 11.96M | 17.07M | 18.22M | 7.29M | 1.11M | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.36 | 1.87 | -0.59 | -0.89 | -1.46 | -1.27 | -0.87 | -0.77 | -0.55 | -0.63 |
| EPS Growth % | 607.46% | 416.95% | 33.71% | 39.04% | -14.96% | -45.98% | -12.99% | -40% | 12.7% | - |
| EPS (Basic) | - | 1.91 | -0.59 | -0.89 | -1.46 | -1.27 | -0.87 | -0.77 | -0.55 | -0.63 |
| Diluted Shares Outstanding | 79.46M | 93M | 92M | 92.34M | 88.72M | 84.51M | 79.61M | 65.54M | 73.61M | 60.12M |
| Basic Shares Outstanding | 78.65M | 91.21M | 92M | 92.34M | 88.72M | 84.51M | 79.61M | 65.54M | 73.61M | 60.12M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Top-line growth stagnation
As indicated by the most recent quarterly data, PagerDuty's year-over-year revenue growth has decelerated to 1.0% in 2027Q1, a significant contraction from the 10.1% growth observed in 2024Q4, suggesting that the company is struggling to maintain its historical expansion pace within the enterprise DevOps market.
The consistent decline in quarterly revenue growth rates implies that the company's core seat-based model may be reaching a saturation point or is being negatively impacted by broader tech-sector headcount reductions. Investors should monitor whether the current product evolution toward AIOps can serve as a sufficient catalyst to re-accelerate growth in an increasingly competitive landscape.
According to the provided income statement data, PagerDuty maintains a robust gross margin profile, consistently hovering around 85% over the last several quarters, which underscores the high-value, mission-critical nature of its incident response platform relative to the underlying costs of service delivery and cloud infrastructure.
This high gross margin provides the company with significant flexibility to fund ongoing product development and customer acquisition efforts. However, the stability of these margins warrants further investigation, as any shift toward more compute-intensive AIOps features could potentially introduce new cost pressures that might erode this structural advantage over time.
Based on reported financial figures, PagerDuty's operating income remains thin, with a 1.19% operating margin, suggesting that the company has yet to demonstrate meaningful operating leverage as the vast majority of gross profit is currently consumed by elevated sales, marketing, and research expenditures.
The persistent reliance on high operating expenses to drive revenue suggests that the platform's growth is not yet self-sustaining at the current scale. Analysts should scrutinize whether management can successfully pivot toward greater expense discipline without sacrificing the competitive moat provided by their extensive integration ecosystem.
As reported in financial statements, the significant discrepancy between the 1.19% operating margin and the 35.30% net margin in recent periods suggests that headline profitability is heavily influenced by non-recurring accounting items, such as tax benefits, rather than core operational efficiency or sustainable business performance.
Investors should be cautious when evaluating net income, as these one-time gains mask the underlying operational challenges and the ongoing impact of substantial stock-based compensation. Normalizing for these non-operating items is essential to gain a clearer picture of the company's true cash-generating capability and long-term earnings potential.
A critical assessment of the income statement reveals that PagerDuty's slowing growth, combined with high customer acquisition costs, may indicate that the company is increasingly vulnerable to being commoditized by broader observability suites that bundle incident management functionality at a lower total cost of ownership.
Short-sellers might focus on the potential for margin compression if the company is forced to lower prices to defend its market share against integrated competitors. The lack of clear operating leverage suggests that any further deceleration in revenue could quickly lead to a return to operating losses, challenging the current valuation narrative.
Quick answers to the most common questions about buying PD stock.
For fiscal year 2026, PagerDuty, Inc. (PD) reported total revenue of $492.5M. This represents a 518.5% increase compared to $79.6M in 2018.
PagerDuty, Inc. (PD) is profitable, generating $173.9M in net income for the fiscal year ending 2026 with a net profit margin of 35.3%.
PagerDuty, Inc. (PD) reported an operating income of $5.8M, resulting in an operating profit margin of 1.2%. This margin reflects the operational efficiency of the business before interest and taxes.
PagerDuty, Inc. (PD) generated $418.4M in gross profit for the year, representing a gross profit margin of 84.9%. This demonstrates the company's core pricing power and production efficiency.