PagerDuty, Inc. engages in the operation of a digital operations management platform in the United States and internationally. The company collects data and digital signals from virtually any software-enabled system or device and leverages artificial intelligence and powerful machine learning to correlate, process, predict, and remediate incident. Its platform includes PagerDuty Incident Management that provides a real-time view status of a digital service; AIOps that applies machine learning to correlate and automate the identification of incidents from billions of events; automation offers centralized design time and run time environment for orchestrating automated workflows; customer service operations, which is offered to orchestrate, automate, and scale responses to customer issues; and artificial intelligence offers generative AI capabilities for the PagerDuty operations cloud platform . The company serves various industries, including software and technology, telecommunications, retail, travel and hospitality, media and entertainment, and financial services. PagerDuty, Inc. was founded in 2009 and is headquartered in San Francisco, California.
PagerDuty is scheduled to announce its Q2 earnings results on Thursday, August 27th, after market close. The consensus EPS estimate is $0.31, up 3.3% year-over-year, while the consensus revenue estimate is $123.02 million, down 0.3% year-over-year. Over the last two years, PagerDuty has beaten EPS estimates 100% of the time and revenue estimates 63% of the time. In the past three months, EPS estimates have seen one upward revision and seven downward, while revenue estimates have seen two upward and one downward.
Enterprise Software Stocks Rally as Investors Rotate Out of Chips
Salesforce, Workday, and PagerDuty all jumped over 4% in afternoon trading as investors rotated into oversold enterprise software names amid profit-taking in semiconductor stocks. ServiceNow surged 4.3% and Salesforce climbed 2.4% while the Nasdaq retreated and Micron fell 4%. The shift reflects a broader rotation from AI infrastructure to application-layer software, fueled by evidence that incumbents like ServiceNow and Salesforce are successfully monetizing AI through premium add-ons rather than facing cannibalization. PagerDuty, which is down 12.5% year-to-date and trading 36.9% below its 52-week high, was among the beneficiaries of the renewed appetite for beaten-down software stocks.
StockStory flags PagerDuty, Hershey, Marriott as cash-rich but risky
StockStory identifies PagerDuty, Hershey, and Marriott as cash-producing companies that may underperform. PagerDuty, with a trailing 12-month free cash flow margin of 23.3%, saw average billings growth of just 1.1% over the last year and faces flat estimated sales and a 5.7 percentage point contraction in free cash flow margin. Hershey, at a 16.1% margin, has struggled with falling unit sales, a 6.3 percentage point drop in operating margin, and a 9.8% annual decline in earnings per share over three years. Marriott, at a 10.6% margin, shows weak revenue per room and no expected free cash flow margin growth, though returns on capital are improving.
Four Top-Ranked Tech Stocks Under $20 Poised for Gains in Second Half of 2026
Zacks Investment Research highlights four technology stocks trading below $20 per share that are well-positioned for growth in the second half of 2026, each carrying a Zacks Rank of #1 (Strong Buy) or #2 (Buy). Unisys, priced at $3.75, saw its 2026 earnings estimate rise 21.3% to 74 cents per share over the past 60 days, supported by a 45% surge in first-quarter new business total contract value and an expanded backlog of $2.96 billion. Daktronics, at $19.91, reported record fiscal 2026 sales of $838.7 million and a $356.2 million backlog, with its fiscal 2027 earnings estimate edging up 0.8% to $1.21 per share. PagerDuty, trading at $9.98, raised its full-year fiscal 2027 non-GAAP EPS guidance to $1.27-$1.32 and announced a $100 million share repurchase program, while its fiscal 2027 earnings estimate climbed 4% to $1.30 per share. RF Industries, at $17.81, posted fiscal second-quarter bookings of $26.3 million and a backlog of $20 million, with its fiscal 2026 earnings estimate rising 19% to 69 cents per share, aided by inclusion in the Russell 3000 Index.
PagerDuty and Samsara Shares Jump 3.8% as US-Iran De-escalation Eases Macro Fears
PagerDuty and Samsara shares each rose 3.8% after the United States and Iran agreed to halt military exchanges, easing fears of a wider Middle East conflict. The de-escalation lifted risk assets by reducing oil-driven inflation pressures that had raised expectations of a Federal Reserve rate hike, benefiting long-duration growth software stocks. The move also built on a chip-to-software rotation sparked by a June 25 report that OpenAI may delay its IPO, which softened fears that AI labs would quickly cannibalize incumbent SaaS companies. PagerDuty, a cloud monitoring firm, remains down 24.2% year-to-date at $9.39 per share, trading 45.3% below its 52-week high of $17.17 from September 2025.
PagerDuty Stock Holds Zacks Rank #2 and Value Grade of A
PagerDuty currently holds a Zacks Rank #2 (Buy) and a Value grade of A. The stock trades with a P/E ratio of 15.36, well below its industry average of 25.03. Its forward P/E has ranged from 13.23 to 28.68 over the past year, with a median of 20.09. PagerDuty also has a P/S ratio of 1.39, compared to the industry average of 2.64. These metrics suggest the stock may be undervalued, supported by a strong earnings outlook.
Tenable, PagerDuty, and HubSpot Shares Fall Amid AI-Driven Software Selloff
Shares of Tenable, PagerDuty, and HubSpot declined in afternoon trading as a broader selloff hit communication-services and software stocks, triggered by high-profile AI talent departures from Alphabet and regulatory concerns. Alphabet fell roughly 6% and Microsoft also slipped, dragging sector indices lower, while persistent fears that AI agents could erode traditional enterprise software subscription models compounded the pressure. The previous week's near-20% single-day drop in Accenture, after the consulting giant cut its growth outlook citing AI compressing demand for IT services, reinforced the thesis that AI is disrupting the software industry. Tenable fell 2.5%, PagerDuty fell 3%, and HubSpot fell 2.7% as the market priced in cannibalization risks, though some analysts argue the selling has become indiscriminate, pointing to Salesforce's AI revenue growth and buyback program. PagerDuty, which is down 33.9% year-to-date and trading 52.3% below its 52-week high, has been particularly volatile, with 28 moves greater than 5% over the past year.
PagerDuty Appoints Eric Prengel as Chief Financial Officer
PagerDuty has appointed Eric Prengel as its new Chief Financial Officer, succeeding Howard Wilson who is retiring before the end of the second quarter of fiscal 2027. Prengel will oversee finance, accounting, global business operations, corporate strategy, corporate development, and investor relations. He brings more than 20 years of leadership experience from roles at Elastic, JPMorgan, Deutsche Bank, Thomas Weisel Partners, and Stern Stewart & Co. CEO John DiLullo highlighted Prengel’s combination of operational discipline and strategic mindset as key to driving long-term shareholder value.
Datadog posts strongest Q1 results among cloud monitoring peers
Datadog reported first-quarter revenues of $1.01 billion, up 32.2% year on year and beating analyst estimates by 4.9%, making it the top performer in a group of four cloud monitoring stocks that collectively exceeded revenue consensus by 2.7%. The company added 240 enterprise customers paying more than $100,000 annually to reach a total of 4,550, and its stock has risen 58% since the report. Among peers, Dynatrace posted revenues of $531.7 million, up 19.4% and 2.1% above estimates, while Nutanix grew 10% to $703.1 million, exceeding expectations by 2.4% but delivering the weakest guidance update. PagerDuty reported flat revenues of $121 million, topping estimates by 1.2% but missing significantly on next-quarter EPS guidance and recording the slowest growth and weakest full-year outlook in the group.