PagerDuty shares slide 5% as Q2 guidance misses estimates

Published 29/05/2025, 21:28
PagerDuty shares slide 5% as Q2 guidance misses estimates

SAN FRANCISCO - PagerDuty Inc. (NYSE:PD) reported better-than-expected first quarter results but saw its shares plunge 5.8% in after-hours trading as its second quarter guidance fell short of analyst estimates.

The digital operations management company posted adjusted earnings per share of $0.24 for the first quarter, beating the consensus estimate of $0.19. Revenue grew 7.8% YoY to $119.8 million, slightly above expectations of $119.27 million.

However, the company forecast second quarter adjusted EPS of $0.19-$0.20, below the $0.23 analysts were expecting. Revenue guidance of $122.5-124.5 million also missed the $123.8 million consensus.

"While purposefully driving our enterprise transformation, PagerDuty delivered revenue at the top of our guidance range and a non-GAAP operating margin exceeding our guidance by 500 basis points," said Jennifer Tejada, Chairperson and CEO of PagerDuty.

For the full fiscal year 2026, PagerDuty raised its EPS guidance to $0.95-$1.00, up from its previous outlook of $0.90-$0.95. However, it lowered its revenue forecast to $493-499 million, down from $500-507 million previously.

The company ended the quarter with $597.1 million in cash and investments. Annual recurring revenue grew 7% YoY to $496 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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