PagerDuty launches AI agent suite to speed incident resolution

Published 08/10/2025, 14:06
PagerDuty launches AI agent suite to speed incident resolution

SAN FRANCISCO - PagerDuty, Inc. (NYSE:PD), a $1.46 billion market cap digital operations management company with impressive gross profit margins of 84%, has introduced an end-to-end AI agent suite designed to help companies resolve digital incidents faster, according to a press release issued by the company. According to InvestingPro analysis, the company appears slightly undervalued, suggesting potential upside for investors.

The digital operations management provider’s Fall ’25 release includes over 150 platform enhancements and integrations. Early adopters have reportedly resolved incidents up to 50% faster, allowing engineering teams to reclaim time for innovation. The company has maintained steady growth with revenue increasing 8.2% year-over-year.

The suite features four AI agents: the SRE Agent, which learns from related incidents and recommends actions; the Scribe Agent, which transcribes calls and generates summaries; the Shift Agent, which resolves scheduling conflicts; and the Insights Agent, which provides context-aware recommendations.

PagerDuty has also made its Model Context Protocol (MCP) server generally available, enabling connections between its platform and third-party AI agents. The company reports that over 250 customers have adopted the MCP server since its introduction.

Additional enhancements include deeper integrations with developer tools like Spotify for Backstage and improved experiences with Slack and Microsoft Teams, allowing teams to manage incidents without switching contexts.

The Scribe Agent and Shift Agent are currently generally available, while the SRE Agent and Insights Agent are in early access with general availability projected for Q4 2025. The MCP Server and Backstage Integration are generally available, with additional features planned for release later this year.

PagerDuty serves nearly half of Fortune 500 companies and approximately two-thirds of Fortune 100 businesses, according to the company’s statement. With a strong current ratio of 2.39 and robust cash position, the company maintains a solid financial foundation. Investors can access detailed analysis and 12 additional key insights about PagerDuty through InvestingPro’s comprehensive research reports, available as part of their coverage of 1,400+ US stocks.

In other recent news, PagerDuty reported its fiscal second-quarter 2026 earnings, revealing a revenue of $123 million, which marked a 6% increase year-over-year. This revenue figure was roughly in line with consensus estimates, although it fell slightly short of the anticipated $123.65 million. The company exceeded profitability expectations with a non-GAAP operating margin of 25%, which was about 800 basis points above consensus. Additionally, PagerDuty’s free cash flow was strong at approximately $30 million, representing a 24% free cash flow margin and exceeding consensus by around 30%. Analysts at Goldman Sachs maintained a Neutral rating with a $16.00 price target, while Canaccord Genuity lowered its price target from $21.00 to $19.00 but kept a Buy rating. Canaccord Genuity cited potential growth in fiscal year 2027, contingent on improvements in small and medium-sized business growth and strategic positioning with large enterprises. Despite the earnings beat, PagerDuty’s stock experienced a decline, closing at $16.12, though it showed a modest uptick in the aftermarket.

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