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Apr 30

PagerDuty Q1 2026 Earnings Report

Announced First Quarter Fiscal 2026 Financial Results

Key Takeaways

PagerDuty reported solid results for the first quarter of fiscal 2026, with revenue reaching the top end of guidance and non-GAAP operating margin significantly exceeding expectations. The company continues to focus on enterprise transformation and advancing its Operations Cloud with AI capabilities.

Revenue for the first quarter of fiscal 2026 increased 7.8% year over year to $119.8 million.

Non-GAAP operating income was $24.4 million, resulting in a non-GAAP operating margin of 20.3%.

Annual Recurring Revenue (ARR) grew 7% year over year to $496 million as of April 30, 2025.

Total paid customers reached 15,247 as of April 30, 2025.

Total Revenue
$120M
Previous year: $111M
+7.8%
EPS
$0.24
Previous year: $0.17
+41.2%
Annual Recurring Revenue
$496M
Previous year: $464M
+7.0%
Customers with ARR over $100K
848
Previous year: 811
+4.6%
Dollar-Based Net Retention Rate
104%
Previous year: 106%
-1.9%
Gross Profit
$101M
Previous year: $91.8M
+9.6%
Cash and Equivalents
$372M
Previous year: $383M
-2.8%
Free Cash Flow
$29M
Previous year: $27.1M
+7.0%
Total Assets
$927M
Previous year: $924M
+0.3%

PagerDuty

PagerDuty

Forward Guidance

For the second quarter of fiscal 2026, PagerDuty expects revenue between $122.5 million and $124.5 million, and non-GAAP net income per diluted share between $0.19 and $0.20. For the full fiscal year 2026, the company updated its revenue guidance to $493.0 million to $499.0 million and raised its non-GAAP net income per diluted share guidance to $0.95 to $1.00.

Positive Outlook

  • Second quarter revenue expected to grow 6% - 7% year over year.
  • Non-GAAP net income per diluted share for full fiscal year 2026 raised.
  • Assumes approximately 94 million diluted shares for Q2 fiscal 2026 non-GAAP EPS.
  • Assumes approximately 93 million diluted shares for full fiscal year 2026 non-GAAP EPS.
  • Utilizing a projected non-GAAP tax rate of 22% for guidance.

Challenges Ahead

  • Full fiscal year 2026 total revenue guidance range lowered from previous guidance.
  • Guidance is forward-looking and actual results may differ materially.
  • Reconciliation of non-GAAP net income per share to GAAP net loss per share is not available without unreasonable effort.
  • Reconciling items could have a significant effect on future GAAP results.
  • Subject to various risks and uncertainties detailed in SEC filings.