PagerDuty Stock Slumps 12% After 2027 Revenue Guidance Misses by $14.4M
PagerDuty beat Q4 estimates with adjusted EPS of $0.29 and revenue of $124.8 million, up 2.7% year-over-year. Shares fell 12% after fiscal 2027 revenue guidance of $488.5–$496.5 million missed the $506.9 million consensus and Q1 revenue outlook also trailed forecasts.
1. Q4 Performance Exceeds Estimates
PagerDuty posted adjusted earnings per share of $0.29, beating the $0.24 consensus, and delivered revenue of $124.8 million, up 2.7% year-over-year versus the $123.15 million forecast.
2. Fiscal 2027 Guidance Falls Short
The company projected fiscal 2027 revenue between $488.5 million and $496.5 million, with a midpoint of $492.5 million falling $14.4 million below the $506.9 million consensus, and guided Q1 revenue of $118.0 million to $120.0 million, also missing estimates.
3. Profitability and Subscription Trends
Adjusted operating income reached $29.8 million, representing a 23.9% operating margin, while annual recurring revenue grew 1% to $498.7 million, and dollar-based net retention declined to 98% from 106% a year earlier.
4. Market Reaction to Guidance
Shares plunged more than 12% in premarket trading following the lower-than-expected revenue outlook as investors recalibrated growth expectations.