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Oct 31, 2025
PagerDuty Q3 2026 Earnings Report
PagerDuty reported modest revenue growth and achieved its second consecutive quarter of GAAP profitability in Q3 2026.
Key Takeaways
PagerDuty delivered solid Q3 results with continued profitability and strong free cash flow, despite slow revenue growth.
Achieved GAAP net income of $159.6M, second straight profitable quarter
Revenue grew to $124.5M, up 4.7% YoY
Non-GAAP operating income reached $35.5M with a 28.5% margin
Free cash flow of $20.9M, reflecting strong operational efficiency
Forward Guidance
PagerDuty expects flat to low single-digit revenue growth in Q4, with a modest improvement in non-GAAP EPS outlook for FY26.
Positive Outlook
- Q4 Non-GAAP EPS guidance raised to $0.24–$0.25
- FY26 Non-GAAP EPS guidance raised to $1.11–$1.12
- Strong cash position with $547.8M in reserves
- Continued focus on cost discipline and profitability
- AI investments cited as driver for long-term efficiency
Challenges Ahead
- Q4 revenue expected to be flat to 2% YoY growth
- FY26 revenue outlook lowered to $490M–$492M from previous $493M–$497M
- Retention rate declined to 100% from 107% YoY
- Deferred revenue dropped sequentially
- Flat customer growth among large enterprise accounts
Historical Earnings Impact
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Avg. Return Before/After Earnings
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