PagerDuty 2026 Q2 Earnings Profitability Returns with 184% Net Income Growth

PagerDuty (PD) delivered a significant turnaround in its fiscal 2026 Q2 earnings, reporting profitability for the first time in the company’s history. Revenue grew 6.4% year-over-year to $123.41 million, while net income surged to $9.41 million, a 184.2% increase from a $-11.18 million loss in 2025 Q2. The company also guided for continued growth and margin expansion, reaffirming its strategic shift toward usage-based pricing and enterprise-focused growth.

PagerDuty reported total revenue of $123.41 million in fiscal 2026 Q2, representing a 6.4% year-over-year increase compared to $115.94 million in 2025 Q2. This growth came as the company navigated elevated churn and downgrades, while still showing sequential improvement in new and expansion bookings.

The company achieved a remarkable turnaround in profitability, reporting net income of $9.41 million in fiscal 2026 Q2, a 184.2% positive swing from a net loss of $-11.18 million in the same period last year. On a per-share basis, PagerDuty reported earnings of $0.11, reversing from a loss of $0.14 per share in 2025 Q2, marking a 178.6% positive change.

The stock price of PagerDuty has shown mixed short-term performance, with a 9.52% jump during the latest trading day, but a 2.24% decline during the most recent full trading week. Over the past month, the stock has climbed 5.54%.

In the wake of its earnings report, CEO Jennifer Tejada highlighted the company's $123 million in Q2 revenue, a 6% year-over-year increase and the first GAAP profit in PagerDuty’s history, with a non-GAAP operating margin of 25%. She noted challenges, including elevated churn and downgrades, but also emphasized strong sequential growth in new and expansion bookings, along with a threefold increase in first-half net new customers. Tejada underscored strategic shifts to usage-based pricing, AI integration, and enterprise licensing, which are driving cross-selling and aligning revenue with value realization. She also highlighted progress in international sales and enterprise sales rep tenure, while addressing inconsistencies in Americas sales by noting leadership changes and structural reforms. Tejada expressed optimism about PagerDuty’s role in AI-native ecosystems and innovation, including new AI agents and partnerships, positioning the company as a central nervous system for enterprise operations.

PagerDuty provided revenue guidance for the third quarter of fiscal 2026 at $124–$126 million, implying 4–6% growth, with net income per diluted share of $0.24–$0.25 and an operating margin of 21%. For the full fiscal 2026 year, the company expects revenue of $493–$497 million, representing 5–6% growth, with net income per diluted share of $1–$1.04 and operating margins of 21–22%. PagerDuty also anticipates trailing 12-month billings growth of approximately 7%, continued margin expansion, and GAAP profitability in FY 2027. The company outlined consistent cash flow and capital return initiatives, supported by an expanded $200 million share repurchase program.

Among the top non-earnings related news within the three weeks following PagerDuty’s Q2 2026 earnings report, key highlights included: 1) AI integration developments: PagerDuty announced new AI agents and enhancements to its AI-native operations platform, aiming to streamline incident response and improve operational efficiency across enterprise systems; 2) Leadership changes and restructuring in sales: To address inconsistencies in the Americas sales region, the company undertook leadership changes and structural reforms, focusing on strengthening enterprise sales and improving international performance; and 3) New enterprise licensing and pricing models: PagerDuty introduced usage-based pricing and enterprise licensing options, aiming to better align revenue with customer value realization while expanding cross-selling opportunities.

Additional News
Among the top non-earnings related news within the three weeks following PagerDuty’s Q2 2026 earnings report:
1. AI integration developments: PagerDuty announced new AI agents and enhancements to its AI-native operations platform, aiming to streamline incident response and improve operational efficiency across enterprise systems.
2. Leadership changes and restructuring in sales: To address inconsistencies in the Americas sales region, the company undertook leadership changes and structural reforms, focusing on strengthening enterprise sales and improving international performance.
3. New enterprise licensing and pricing models: PagerDuty introduced usage-based pricing and enterprise licensing options, aiming to better align revenue with customer value realization while expanding cross-selling opportunities.