PagerDuty, Inc. reported a notable financial performance for the third quarter of fiscal 2026, ending October 31, 2025, with revenues reaching $124.5 million, a 4.7% increase from $118.9 million in the same quarter of the previous year. For the nine-month period, total revenue was $367.8 million, up 6.3% from $346.1 million year-over-year. The company achieved a gross profit of $106.2 million for the quarter, translating to a gross margin of 85.3%, compared to 83.0% in the prior year. The net income attributable to PagerDuty, Inc. common stockholders was $159.6 million, a significant recovery from a net loss of $6.6 million in the same quarter last year.

The company’s operational efficiency improved, as evidenced by a reduction in total operating expenses to $98.1 million from $109.0 million in the prior year, driven by lower research and development, sales and marketing, and general administrative costs. The decrease in operating expenses was attributed to a reduction in personnel costs and stock-based compensation. Additionally, PagerDuty reported a dollar-based net retention rate of 100%, down from 107% a year earlier, indicating stable customer retention but a slight decline in expansion revenue from existing customers.

In terms of strategic developments, PagerDuty has focused on enhancing its product offerings and expanding its market presence. The company reported a total of 15,398 customers as of October 31, 2025, an increase from 15,050 a year prior, with 867 customers generating over $100,000 in annual recurring revenue (ARR). The ARR itself grew to $497.1 million, up from $483.0 million year-over-year. The company continues to invest in its platform, integrating artificial intelligence and machine learning capabilities to improve operational efficiency for its clients.

Looking ahead, PagerDuty maintains a positive outlook, expecting its existing cash and cash equivalents, along with cash generated from operations, to be sufficient to support its working capital and capital expenditure needs for at least the next 12 months. The company also plans to continue its share repurchase program, having repurchased 2.4 million shares under its 2025 Share Repurchase Program, with $162.1 million remaining available for future repurchases. Despite the challenges posed by macroeconomic conditions, PagerDuty is positioned to leverage its platform to drive growth and enhance customer experiences in the digital operations management space.

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.

This description was generated via AI from an annual report. Updated 10 months ago.

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