PagerDuty Posts Profit, Names New CEO, Boosts Buybacks
Memorial Day Sale – Claim 70% Off TipRanks
- Unlock trusted, data-backed investing tools with TipRanks Premium, from analyst ratings and forecasts to breaking news and portfolio analysis.
- Discover high-conviction stock picks and new investing opportunities with the TipRanks Smart Investor Newsletter
An update from PagerDuty ( (PD) ) is now available.
On May 27, 2026, PagerDuty’s board authorized a new $100 million share repurchase program running through May 26, 2028, replacing prior programs totaling $300 million and signaling continued confidence in its balance sheet, with buybacks to be funded from $444 million in cash and investments. On May 28, 2026, the company reported first-quarter fiscal 2027 results that modestly grew revenue 1% year on year to $121 million, delivered its fourth straight quarter of GAAP profitability with $10.2 million in net income, and highlighted a leadership transition to new CEO John DiLullo alongside flat ARR and softer net retention that underscore a shift toward profitability and operational efficiency over rapid top-line expansion.
Quarterly operating income reached $9.2 million, or a 7.6% margin, while non-GAAP operating margin climbed to 24.6%, supported by $44.3 million in operating cash flow and $41.2 million in free cash flow. Although ARR remained flat at $496 million and dollar-based net retention eased to 97%, customer metrics showed incremental growth, and PagerDuty emphasized new AI capabilities, strategic partnerships and industry accolades as it seeks to consolidate its position in AI-first operations management under its refreshed leadership structure.
The most recent analyst rating on (PD) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on PagerDuty stock, see the PD Stock Forecast page.
Spark’s Take on PD Stock
According to Spark, TipRanks’ AI Analyst, PD is a Neutral.
The score is driven primarily by improving fundamentals—strong gross margins and healthy cash generation alongside a profitability inflection—tempered by elevated leverage and questions about the sustainability of core operating profitability. Guidance and retention headwinds cap the outlook, while technicals remain mixed with the stock still below longer-term moving averages.
To see Spark’s full report on PD stock, click here.
More about PagerDuty
PagerDuty, Inc., listed on the NYSE under the ticker PD, operates in the AI-first operations management and IT incident response market. The company provides a cloud-based Operations Cloud platform that helps enterprises automate incident detection, triage and response, and has been repeatedly recognized as a leader in IT incident response platforms while expanding an ecosystem of AI integrations and partnerships.
Average Trading Volume: 2,567,332
Technical Sentiment Signal: Sell
Current Market Cap: $551.1M
For a thorough assessment of PD stock, go to TipRanks’ Stock Analysis page.
