PagerDuty, Inc. reported a revenue of $492.5 million for the fiscal year ending January 31, 2026, marking a 5% increase from $467.5 million in the previous year. The company achieved profitability for the first time, with a net income of $173.4 million, compared to a net loss of $42.7 million in the prior fiscal year. This turnaround was attributed to a combination of increased customer engagement and operational efficiencies, which resulted in a gross margin of 84.9%, up from 83.0% in the previous year.
The company experienced significant operational growth, with the number of paying customers rising to 15,351, up from 15,114 a year earlier. Notably, 861 of these customers contributed annual recurring revenue (ARR) exceeding $100,000, and 79 customers generated over $1 million in ARR. PagerDuty's dollar-based net retention rate was reported at 98%, indicating strong customer retention and expansion within existing accounts. The company also expanded its international presence, with 29% of total revenue coming from outside the United States.
Strategically, PagerDuty has focused on enhancing its product offerings, particularly in artificial intelligence and automation, to meet the evolving needs of its customers. The company has made significant investments in research and development, with operating expenses decreasing to $412.6 million from $447.6 million in the previous year. This reduction was driven by lower personnel costs and a decrease in outside consulting services. Additionally, PagerDuty has implemented a flexible pricing model, transitioning from traditional seat-based licensing to usage-based agreements, which aligns customer investments with business outcomes.
Looking ahead, PagerDuty aims to continue its growth trajectory by acquiring new customers and expanding usage within its existing customer base. The company plans to invest further in marketing and sales efforts, particularly targeting enterprise customers, while also enhancing its product capabilities. Despite the positive outlook, PagerDuty acknowledges potential risks, including macroeconomic conditions and competitive pressures, which could impact future performance. The company remains committed to maintaining operational resilience and driving innovation to capitalize on market opportunities.
About PagerDuty, Inc.
PagerDuty, Inc. is a global leader in digital operations management, providing a cloud-based platform that integrates incident response, AI-driven automation, and customer service solutions. Serving enterprise clients across various industries, it enhances operational resilience, accelerates incident resolution, and improves customer experience through extensive integrations, AI capabilities, and scalable infrastructure. Its business model relies on subscription revenues from organizations seeking real-time, proactive digital operations.
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