PagerDuty Announces Fourth Quarter and Full Year Fiscal 2026 Financial Results

Fourth quarter revenue increased 2.7% year over year to $125 million

Annual Recurring Revenue ("ARR") grew 1% year over year to $498.7 million

Fourth quarter operating income was $5 million; non-GAAP operating income was $30 million

Net income was $11.0 million, representing the third consecutive quarter of GAAP profitability

SAN FRANCISCO – March 12, 2026 - PagerDuty, Inc. (NYSE:PD), a leader in AI-first operations management, today announced financial results for the fourth quarter and full year of fiscal 2026 ended January 31, 2026.

“Fiscal 2026 was a transformational year for PagerDuty, marked by stabilized revenue retention, a top-end guidance beat with $493 million in revenue, and a 700-basis-point expansion in non-GAAP operating margin,” said Jennifer Tejada, Chairperson and CEO of PagerDuty. “Our results reflect PagerDuty’s role as the essential control plane for AI operations. With leading agentic offerings driving consumption growth across enterprise and AI-native segments, we have strengthened our core franchise and are well-positioned for durable, profitable growth.”

Fourth Quarter Fiscal 2026 Financial Highlights

  • Revenue was $124.8 million, an increase of 2.7% year over year.
  • Operating income was $4.5 million; operating margin was 3.6%.
  • Non-GAAP operating income was $29.8 million; non-GAAP operating margin was 23.9%.
  • Net income was $11.0 million, representing the Company's third consecutive quarter of GAAP profitability.
  • Net income per diluted share attributable to PagerDuty, Inc. common stockholders was $0.12.
  • Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders was $0.29.
  • Net cash provided by operating activities was $25.4 million, with free cash flow of $22.6 million.

Full Year Fiscal 2026 Financial Highlights

  • Revenue was $492.5 million, an increase of 5.4% year over year.
  • Operating income was $5.8 million; operating margin was 1.2%.
  • Non-GAAP operating income was $121.1 million; non-GAAP operating margin was 24.6%.
  • Net income was $173.9 million, representing the Company's first full year of GAAP profitability.
  • Net income per diluted share attributable to PagerDuty, Inc. common stockholders was $1.87.
  • Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders was $1.16.
  • Net cash provided by operating activities was $114.9 million, with free cash flow of $102.7 million.
  • Cash, cash equivalents, and investments were $469.8 million as of January 31, 2026.

The section titled “Non-GAAP Financial Measures” below contains a description of the non-GAAP financial measures and reconciliations between GAAP and non-GAAP financial information.

Fourth Quarter and Recent Highlights

  • Annual recurring revenue ("ARR") as of January 31, 2026 grew 1% year over year to $499 million.
  • Customers with ARR over $100 thousand grew 1% to 861 as of January 31, 2026, compared to 849 in the prior year.
  • Dollar-based net retention rate was 98% as of January 31, 2026, compared to 106% in the prior year.
  • Free and paid customers totaled more than 35,000 as of January 31, 2026 representing approximately 14% growth year over year.
  • Total paid customers were 15,351 as of January 31, 2026, compared to 15,114 in the prior year.
  • Remaining performance obligations were $449 million as of January 31, 2026. Of this amount, the Company expects to recognize revenue of approximately $314 million, or 70%, over the next 12 months, $106 million, or 24%, over months 13 to 24, and the remainder thereafter.
  • Appointed Scott Aronson to the Company's Board of Directors.
  • Appointed Chris Ferro as Chief Legal Officer.
  • PagerDuty Becomes Newest AWS Software Partner to Earn Resilience Competency.
  • Continued to deliver leading AI capabilities in the PagerDuty Operations Cloud Platform including Site Reliability Engineer Agent workflow integrations, AI Orchestrations (early access), and expanding ecosystem integrations.
  • Delivered greater value in the PagerDuty Operation Cloud Platform via new pricing and packaging to bring more automation, deeper insights, and a seamless Slack-first experience to teams at every level.
  • Named by Gartner as a Representative Vendor in two recent AI agents research reports, including its Market Guide for AI Site Reliability Engineering Tooling and Reference Architecture Brief.
  • Recognized in Gartner’s Innovation Insight: Cybersecurity Incident Response Management (CIRM) report - the second time this year Gartner has acknowledged PagerDuty’s relevance in security incident response.
  • Featured customer: SIRUM.
  • Lands and expands include: Anthropic, PBC; Equinix, Inc.; Lambda, Inc.; NVIDIA Corporation; and ZoomInfo Technologies Inc.
  • Announced event series in four cities globally including London, Tokyo, Sydney, and San Francisco for a day of connection and knowledge sharing.
  • Awarded as a two-time Silver Winner in the 5th Annual Anthem Award.
  • Named as finalist in the 2025 DevOps Dozen award for Best End-to-End DevOps Platform and Best Application of Generative AI in a DevOps Tool/Platform.
  • Shortlisted in the 2025/2026 Cloud Awards for Best Software-as-a-Service - USA (Enterprise), Best Cloud Automation Solution, and Best Use of AI in Cloud Computing.
  • Recognized on five of Built In's 2026 Best Places to Work U.S. lists, including #1 Best Places to Work in Atlanta and #1 Best Large Places to Work in San Francisco.

Financial Outlook 

For the first quarter of fiscal 2027, PagerDuty currently expects:

  • Total revenue of $118.0 million - $120.0 million.
  • Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders of $0.23 - $0.25 assuming approximately 83 million diluted shares and a non-GAAP tax rate of 20%.

For the full fiscal year 2027, PagerDuty currently expects:

  • Total revenue of $488.5 million - $496.5 million.
  • Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders of $1.23 - $1.28 assuming approximately 81 million diluted shares and a non-GAAP tax rate of 20%.

These statements are forward-looking and actual results may differ materially. Please refer to the section titled "Forward-Looking Statements" below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

PagerDuty has not reconciled its expectations as to non-GAAP net income per share attributable to PagerDuty, Inc. common stockholders to GAAP net loss per share attributable to PagerDuty, Inc. common stockholders because certain reconciling items such as stock-based compensation expense, employer taxes related to employee stock transactions, amortization of debt issuance costs, amortization of acquired intangible assets, acquisition-related expenses, restructuring costs, gains or losses on extinguishment of convertible senior notes, adjustment attributable to redeemable non-controlling interest, and income tax effects and adjustments are out of PagerDuty's control or cannot be reasonably predicted. Accordingly, such reconciliation is not available without unreasonable effort. However, it is important to note that these reconciling items could have a significant effect on PagerDuty's future GAAP results.

Conference Call Information:

PagerDuty will host a conference call and live webcast (Zoom meeting ID 992 1279 8830) for analysts and investors at 2:00 p.m. Pacific Time on March 12, 2026. For audio only, the dial-in number 1-312-626-6799 may be used. This news release with the financial results will be accessible from PagerDuty’s website at investor.pagerduty.com prior to the conference call. A live webcast of the conference call will be accessible from the PagerDuty investor relations website at investor.pagerduty.com. 

Supplemental Financial and Other Information:

Supplemental financial and other information can be accessed through PagerDuty’s investor relations website at investor.pagerduty.com. PagerDuty uses the investor relations section on its website as the means of complying with its disclosure obligations under Regulation FD. Accordingly, we recommend that investors monitor PagerDuty’s investor relations website in addition to following PagerDuty’s press releases, SEC filings, social media, including PagerDuty’s LinkedIn account (https://www.linkedin.com/company/482819), X (formerly Twitter) account @pagerduty, the X account @jenntejada and Facebook page (facebook.com/pagerduty), and public conference calls and webcasts.

Forward-Looking Statements

This press release and the related webcast contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our future financial and operational performance and outlook, and strategies, objectives, opportunity, expectations and market positioning. Words such as “expect,” “extend,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “accelerate,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks and other factors detailed in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 17, 2025 and our Quarterly Reports on Form 10-Qs filed with the SEC on May 30, 2025, September 4, 2025, and November 26, 2025. Additional information will be made available in our Annual Report on Form 10-K for the year ended January 31, 2026, which is expected to be filed with the SEC shortly after this release, and other filings and reports that we may file from time to time with the SEC. In particular, the following risks and uncertainties, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: our ability to maintain or increase profitability; our ability to sustain or increase growth and effectively manage changes in our business and industry; our ability to attract new customers and retain and sell additional functionality and services to our existing customers; our dependence on a majority of our revenue from a single product; our ability to compete effectively in an increasingly competitive market; the impact of seasonality on our business; our ability to adapt and respond effectively to rapidly developing technology; our ability to effectively develop and expand our marketing and sales capacities; our ability to enhance and improve our platform or develop new functionality or use cases; the effect of unfavorable conditions in our industry or the global economy, or reductions in information technology spending, on our business and results of operations; adverse consequences that could arise as a result of international trade policies, geopolitical developments, and macroeconomic conditions, including tariffs, sanctions, trade barriers and global instability; the accuracy of our estimates of market opportunity and forecasts of market growth; our assumptions and limitations to which ARR and certain other operational data are subject that may cause such metrics to not provide an accurate indication of actual performance or future results; adverse consequences that could result from any compromise of our information technology systems or those of third parties with whom we work or our data; adverse consequences that could result from any interruptions or delays in performance of our service; and our ability to maintain the compatibility of our platform with third party applications that our customers use in their businesses.

Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release and the related webcast represent our views as of the date of this press release and the related webcast. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release and the related webcast.

About PagerDuty

PagerDuty, Inc. (NYSE:PD) is the global leader in AI-first operations management serving more than 35,000 organizations worldwide. The PagerDuty Operations Cloud is a comprehensive, multi-product operations cloud platform that sits at the center of the enterprise technology stack. The Platform is a system of intelligence and action, ingesting signals from over 700 integrations, to orchestrate the right response across people, machines and software. Trusted by nearly half of the Fortune 500, half of the Forbes AI 50, and approximately two-thirds of the Fortune 100, PagerDuty is essential to delivering always-on digital experiences for modern businesses. Learn more and try it for free at www.pagerduty.com.

The PagerDuty Operations Cloud

The PagerDuty Operations Cloud is an AI-powered platform that automates and orchestrates the entire incident management lifecycle—from detection to resolution, providing resilience at scale. Designed for mission-critical operations, the platform empowers teams to identify and diagnose disruptions in real time, mobilizing the right teams to quickly streamline workflows to solve digital issues before they become incidents. The PagerDuty Operations Cloud is essential for delivering flawless, always-on digital experiences that organizations and consumers expect today.

Investor RelationsContact:

Paul Underwood

investor@pagerduty.com

Media Contact:

Debbie O'Brien

media@pagerduty.com