Revenue growth has decelerated sharply to 0.8% YoY in 2027Q2, while an 83.9% gross margin is largely consumed by SG&A, resulting in a fragile 8.2% operating margin.
PagerDuty, Inc. (PD) annual income statement — 9-year revenue, gross profit & net income history
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 |
|---|
| Sales/Revenue | 494.73M | 492.55M | 467.5M | 430.7M | 370.79M | 281.4M | 213.56M | 166.35M | 117.82M | 79.63M |
| Revenue Growth % | 2.3% | 5.36% | 8.54% | 16.16% | 31.77% | 31.77% | 28.38% | 41.19% | 47.96% | - |
| Cost of Goods Sold | 75.01M | 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 | 419.72M | 418.4M | 387.83M | 352.87M | 300.36M | 233.03M | 182.87M | 141.77M | 100.57M | 66.91M |
| Gross Margin % | 84.84% | 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 | 387.7M | 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 | 264.82M | 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 | 0 | 0 | 0 | 203K | 1.03M | 682K |
| Operating Income | 32.02M | 5.84M | -59.77M | -96.25M | -129.38M | -101.71M | -66.28M | -55.56M | -42.32M | -38.32M |
| Operating Margin % | 6.47% | 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 | 44.02M | 18.96M | -39.17M | -76.09M | -111.95M | -93.36M | -61.01M | -53.22M | -40.63M | -36.97M |
| EBITDA Margin % | 8.9% | 3.85% | -8.38% | -17.67% | -30.19% | -33.18% | -28.57% | -31.99% | -34.48% | -46.43% |
| EBITDA Growth % | 481.39% | 148.41% | 48.52% | 32.03% | -19.92% | -53.01% | -14.64% | -31% | -9.9% | - |
| D&A (Non-Cash Add-back) | 11.99M | 13.12M | 20.6M | 20.15M | 17.43M | 8.36M | 5.27M | 2.34M | 1.69M | 1.35M |
| EBIT | 44.88M | 26.5M | -35.12M | -72.96M | -129.02M | -101.71M | -63.55M | -49.66M | -40.04M | -37.26M |
| Net Interest Income | 11.92M | 13.84M | 20.86M | 15.6M | -668K | -2.45M | -5.73M | 5.69M | 1.25M | -331K |
| Interest Income | 18.56M | 22.69M | 27.49M | 22.1M | 4.76M | 2.95M | 4.23M | 5.69M | 1.25M | 371K |
| Interest Expense | 6.64M | 8.86M | 6.63M | 6.5M | 5.43M | 5.4M | 9.96M | 0 | 0 | 702K |
| Other Income/Expense | 10.16M | 14.32M | 18.02M | 18.87M | -687K | -5.21M | -6.53M | 5.89M | 2.28M | 351K |
| Pretax Income | 42.18M | 20.16M | -41.75M | -77.38M | -130.06M | -106.92M | -72.81M | -49.66M | -40.04M | -37.97M |
| Pretax Margin % | 8.53% | 4.09% | -8.93% | -17.97% | -35.08% | -38% | -34.09% | -29.85% | -33.98% | -47.68% |
| Income Tax | -141.33M | -152.54M | 1.78M | -12K | -839K | 535K | -3.91M | 675K | 701K | 184K |
| Effective Tax Rate % | -335.05% | -756.48% | -4.27% | 0.02% | 0.65% | -0.5% | 5.36% | -1.36% | -1.75% | -0.48% |
| Net Income | 180.97M | 173.85M | -42.73M | -81.76M | -128.42M | -107.45M | -68.9M | -50.34M | -40.74M | -38.15M |
| Net Margin % | 36.58% | 35.3% | -9.14% | -18.98% | -34.63% | -38.19% | -32.26% | -30.26% | -34.58% | -47.91% |
| Net Income Growth % | 1574.77% | 506.82% | 47.73% | 36.34% | -19.51% | -55.95% | -36.88% | -23.56% | -6.79% | - |
| Net Income (Continuing) | 183.52M | 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 | 14.94M | 17.07M | 18.22M | 7.29M | 1.11M | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.28 | 1.87 | -0.59 | -0.89 | -1.45 | -1.27 | -0.87 | -0.77 | -0.55 | -0.63 |
| EPS Growth % | 1334.38% | 416.95% | 33.71% | 38.62% | -14.17% | -45.98% | -12.99% | -40% | 12.7% | - |
| EPS (Basic) | - | 1.91 | -0.59 | -0.89 | -1.45 | -1.27 | -0.87 | -0.77 | -0.55 | -0.63 |
| Diluted Shares Outstanding | 79.29M | 93M | 92M | 92.34M | 88.72M | 84.51M | 79.61M | 65.54M | 73.61M | 60.12M |
| Basic Shares Outstanding | 77.98M | 91.21M | 92M | 92.34M | 88.72M | 84.51M | 79.61M | 65.54M | 73.61M | 60.12M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Growth deceleration amid margin pressure
Metrics are mathematically derived from official filings.
Growth Deceleration Amidst Market Maturity
PagerDuty's revenue growth has decelerated sharply to 0.8% year-over-year in the most recent quarter, a significant slowdown from the 9.4% growth seen in 2025Q3, suggesting the core incident management market may be reaching saturation.
The sequential trend shows a clear deceleration from high-single-digit growth to near-flat, indicating that seat expansion is facing significant headwinds, likely from a cooling tech hiring environment. This trajectory suggests the company's growth catalysts, such as AIOps adoption, have not yet offset the maturation of its core business, warranting close monitoring for signs of stabilization or further deterioration.
High Gross Margins Mask Operational Inefficiency
While PagerDuty maintains a robust gross margin of approximately 84%, its operating margin has only recently turned positive to 8.2% in 2027Q2, indicating that nearly all gross profit is consumed by sales and R&D expenses.
The structural gross margin is a clear strength, reflecting the low incremental cost of its SaaS model. However, the persistent gap between gross and operating margins highlights a heavy reliance on high customer acquisition and product development spending, suggesting limited operating leverage at the current scale and a business model that is not yet efficiently converting revenue into operating profit.
Operating Leverage Emerges but Remains Fragile
Operating income swung from a loss of $21.5M in 2025Q1 to a profit of $10.2M in 2027Q2, demonstrating emerging operating leverage as management appears to have disciplined SG&A and R&D spending.
The improvement is driven by a reduction in total operating expenses from $113.3M to $94.2M over the period, while gross profit grew. This suggests successful cost containment efforts. However, the leverage is fragile; the operating margin remains in the single digits, and any re-acceleration in spending to fund growth could quickly erode these gains, indicating the company is still in a transitional phase toward sustainable profitability.
Net Income Distorted by Non-Operating Items
The stark divergence between the 8.2% operating margin and the 3.8% net margin in 2027Q2, coupled with a historical net margin of 129.7% in 2026Q3, strongly suggests headline net income is heavily influenced by non-recurring accounting items.
The 2026Q3 net income of $161.6M on $124.5M revenue is a clear anomaly, likely from a one-time tax benefit or deferred tax asset release. This indicates that reported EPS is not a reliable indicator of core operational performance. Investors should focus on operating income and cash flow from operations to assess the true earnings power of the business, as non-operating gains can create misleading profitability signals.
SG&A Dominates Cost Structure, R&D Held Steady
SG&A is the primary cost driver, consuming over 50% of revenue in recent quarters, while R&D spending has been reduced from $37.3M to $30.9M, suggesting a shift in focus from product development to sales efficiency.
The reduction in R&D as a percentage of revenue may indicate a maturing product suite or a strategic reallocation of resources toward customer acquisition. However, the persistent high SG&A burden suggests that the sales and marketing engine required to maintain and grow the customer base is capital-intensive, which is a key constraint on the path to higher operating margins.
Sustainability of Profitability Turnaround Questioned
The recent shift to profitability appears driven by cost cuts rather than revenue acceleration, raising questions about whether the turnaround is sustainable if growth remains near zero.
A short-seller would focus on the fact that operating income turned positive primarily through expense reduction (SG&A down ~18% from peak) while revenue growth stalled. This suggests the profitability is not yet self-sustaining through operating leverage. If the company needs to re-invest heavily in sales or R&D to reignite growth, margins could quickly revert to losses, challenging the narrative of a successful transition to a profitable growth model.