EarningsQ2 2027 Earnings Report
DE:2TY Q2 2027 EPS Results
Actual EPS€0.28
Consensus EPS€0.27
Beat/MissBeat by +€0.01
One Year Ago EPS€0.26
DE:2TY Q2 2027 Revenue Results
Actual Revenue€107.48M
Expected Revenue€106.47M
Beat/MissBeat by +€1.01M
YoY Revenue Growth+0.83%
Earnings Announcement Details
QuarterQ2 2027
Date08/27/2026
TimeAfter Close
Conference CallThursday, August 27, 2026
DE:2TY Upcoming Earnings
PagerDuty's next earnings date is estimated for November 26, 2026, based on past reporting schedules.
Q2 2027 Earnings Call Audio
DE:2TY Q2 2027 Earnings Call
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Q2 2027 Earnings Slide Deck
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a cautiously optimistic tone: solid operational and financial discipline, GAAP profitability, strong cash generation, ARR surpassing $500M, improved retention metrics, accelerating adoption of the usage‑based AI platform (double‑digit Ops Cloud growth), large enterprise wins, and an improved margin trajectory supported by a targeted restructuring. Offsetting these positives are very modest top‑line growth (revenue up 1% YoY and FY guidance roughly flat), muted billings/RPO growth, and a one‑time workforce reduction with related charges. Management framed the quarter as evidence of early ‘green shoots’ while acknowledging remaining work to fully resolve seat pressure and drive stronger revenue expansion.Company Guidance
ARR Milestone and Customer Growth
Annual recurring revenue (ARR) crossed $500 million, ending the quarter at $501 million (up $6 million in the quarter). Customers spending over $100,000 annually grew to 884 (increase of 24 since Q1 FY27). More than 15,000 paying customers and nearly two-thirds of the Fortune 100 on the platform.
Revenue and Margins Beat Guidance
Revenue was $124.4 million, up 1% year‑over‑year and exceeded the top end of guidance. Non‑GAAP operating income was $29.5 million (24% operating margin), above the high end of guidance. Gross margin was 85%, within target range.
GAAP Profitability and Strong Cash Generation
GAAP net income was $4.7 million (fifth consecutive quarter of GAAP profitability). Cash from operations was $37 million and free cash flow was $33 million, representing a 26% free cash flow margin. Cash, cash equivalents and investments totaled $470 million.
Product Momentum — Ops Cloud / PD Reliability Platform
Operations Cloud adoption accelerated during Q2 and grew double digits on a total basis. Company announced upcoming GA of renamed PD Reliability Platform (usage‑based, AI‑first incident prevention and autonomous SRE agent) and expects broad availability this fall with usage‑based pricing to drive adoption.
Notable Enterprise Wins
Large new deals included a roughly $850k 3‑year usage‑based agreement with a diversified financial services firm, a Japan bank multi‑product deal tied to a 40% operating expense reduction thesis, and a nearly $3 million 36‑month agreement with a global workflow automation platform — cited as one of the largest new logos this year.
Retention and Product Stickiness Improving
Dollar‑based net retention (DBNR) improved to 98% sequentially and annualized gross retention also improved sequentially, signaling stabilization. Management emphasized improved retention tied to new AI capabilities and usage model.
Operational Discipline and Margin Trajectory
Company completed a workforce restructuring focused on non‑customer‑facing roles and expects run‑rate savings to improve margins. Management raised FY non‑GAAP operating margin guidance to 25%–26% (up 1 point) and Q3 guidance implies ~26.5%–27.5% operating margin, accelerating toward a 30% long‑term target.
External Validation and Ecosystem Partnerships
PagerDuty received industry recognition (Best enterprise‑level SaaS product and Best SaaS solution for IT and DevOps awards; Forrester and IDC mentions) and added ecosystem integrations (Anthropic, Cursor, LangChain, CoreWeave, Anduril), reinforcing product credibility.
DE:2TY Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed