📊 PD Key Takeaways
Is PagerDuty, Inc. (PD) a Good Investment?
PagerDuty demonstrates strong cash generation and excellent gross margins characteristic of quality SaaS, but operational profitability is critically weak with only 1.2% operating margins and dangerously low 1.3x interest coverage. The substantial gap between operating income ($5.8M) and net income ($173.4M) raises earnings quality concerns, while 5.4% revenue growth and high leverage leave limited margin for error.
PagerDuty, Inc. Key Strengths (PD)
- Exceptional gross margin of 84.9% reflects pricing power and efficient delivery model typical of strong SaaS
- Strong free cash flow generation of $111.9M (22.7% FCF margin) with minimal capex demonstrates operational resilience
- Healthy liquidity position with 2.01x current/quick ratios and $237.4M cash reserves provides financial flexibility
- Impressive ROE of 68.4% and ROA of 17.5% indicate efficient capital deployment
PD Stock Risks: PagerDuty, Inc. Investment Risks
- Operating margin of only 1.2% is unsustainably low for a software company and indicates severe operating expense pressures
- Interest coverage ratio of 1.3x is dangerously tight with minimal headroom to absorb earnings volatility or rate increases
- High financial leverage at 1.66x Debt/Equity with $420.6M long-term debt creates refinancing and stability risks
- Quality of earnings concern: $173.4M net income versus $5.8M operating income suggests heavy reliance on non-operating gains
- Modest 5.4% revenue growth is below historical SaaS benchmarks and signals potential demand weakening
Key Metrics to Watch
- Operating margin expansion trajectory - must improve substantially from current 1.2% level to ensure sustainability
- Interest coverage ratio trend - any decline signals debt service stress and financial vulnerability
- Operating expense ratio (OpEx/Revenue) - indicates management's ability to control cost structure
- Revenue growth acceleration - assess whether 5.4% represents cyclical slowdown or structural headwind
PagerDuty, Inc. (PD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 22.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 2.01x current ratio provides a solid financial cushion.
PD Profit Margin, ROE & Profitability Analysis
PD vs Technology Sector: How PagerDuty, Inc. Compares
How PagerDuty, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is PagerDuty, Inc. Stock Overvalued? PD Valuation Analysis 2026
Based on fundamental analysis, PagerDuty, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
PagerDuty, Inc. Balance Sheet: PD Debt, Cash & Liquidity
PD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: PagerDuty, Inc.'s revenue has grown significantly by 75% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.89 indicates the company is currently unprofitable.
PD Revenue Growth, EPS Growth & YoY Performance
PD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2027 | $119.8M | $5.3M | $-0.07 |
| Q3 2026 | $118.9M | -$5.9M | $-0.07 |
| Q2 2026 | $115.9M | $2.4M | $0.03 |
| Q1 2026 | $111.2M | -$7.2M | $-0.07 |
| Q3 2025 | $108.7M | -$5.9M | $-0.07 |
| Q2 2025 | $107.6M | -$10.9M | $-0.14 |
| Q1 2025 | $103.2M | -$12.2M | $-0.13 |
| Q3 2024 | $94.2M | -$12.8M | $-0.16 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
PagerDuty, Inc. Dividends, Buybacks & Capital Allocation
PD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for PagerDuty, Inc. (CIK: 0001568100)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PD
What is the AI rating for PD?
PagerDuty, Inc. (PD) has an AI grade of B with 58% confidence, based on fundamental analysis of SEC EDGAR filings.
What are PD's key strengths?
Claude: Exceptional gross margin of 84.9% reflects pricing power and efficient delivery model typical of strong SaaS. Strong free cash flow generation of $111.9M (22.7% FCF margin) with minimal capex demonstrates operational resilience.
What are the risks of investing in PD?
Claude: Operating margin of only 1.2% is unsustainably low for a software company and indicates severe operating expense pressures. Interest coverage ratio of 1.3x is dangerously tight with minimal headroom to absorb earnings volatility or rate increases.
What is PD's revenue and growth?
PagerDuty, Inc. reported revenue of $492.5M.
Does PD pay dividends?
PagerDuty, Inc. does not currently pay dividends.
Where can I find PD SEC filings?
Official SEC filings for PagerDuty, Inc. (CIK: 0001568100) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PD's EPS?
PagerDuty, Inc. has a diluted EPS of $1.87.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is PD's fundamental grade?
Based on our AI fundamental analysis in May 2026, PagerDuty, Inc. has a B grade with 58% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is PD stock overvalued or undervalued?
Valuation metrics for PD: ROE of 68.4% (sector avg: 22%), net margin of 35.2% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
What is PD's AI grade for 2026?
Our dual AI analysis gives PagerDuty, Inc. a combined B grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is PD's free cash flow?
PagerDuty, Inc.'s operating cash flow is $114.9M, with capital expenditures of $2.9M. FCF margin is 22.7%.
How does PD compare to other Technology stocks?
Vs Technology sector averages: Net margin 35.2% (avg: 18%), ROE 68.4% (avg: 22%), current ratio 2.01 (avg: 2.5).
Is PagerDuty, Inc. carrying too much debt?
PD has a debt-to-equity ratio of 1.66x, which is above the Technology sector average of 0.5x. However, the current ratio of 2.01 suggests adequate short-term liquidity.
Why is PD's return on equity (ROE) so high?
PagerDuty, Inc. has a return on equity of 68.4%, significantly above the Technology sector average of 22%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 35.2% net margin.