Q2 Fiscal Year 2027
Investor PresentationPeriod ended July 31, 2026
Our Vision: Autonomous Operations
Prevents Incidents
Data at Scale
750+ API and 20 MCP
integrations
Human + Agent Incident Response
Event orchestration & intelligence
Chat-native collaboration
AI Agents & Workflow automation
12 billion events*
16 million incident workflows*
10 million Slack and MS Teams actions executed*
Over 900+ million incidents managed
99.99% average reliability
*per year
Autonomous OperationsContinuous Improvement
Responders: Post-incident analysis
Agents - Incident history for context
Developers - Fixing root cause & prevention
Constant and Deliberate Innovation
16 years of domain expertise
99.9%
86B
Events ingested
828M
incidents created by customers
10+years of AI innovation
$100Mannual R&D investment
web availability SLA
2023
2024
2025
Platform
2026
AI Ecosystem MCP
2009
PagerDuty Founded
2010Escalation Policies
On-Call Management
2018
Response Plays
2019
Event Intelligence (AIOps)
2020Pro code automation
2021
Customer Service Ops
Service Graph
AIOps
2022
Low code automation
Status Pages
Incident Management
Post-Incident Analysis
Chat-first capabilities
GenAI
AI Agents Ops Console
Chat Experience
AI & Automation Use Case Library
AI Is Accelerating Software - and Operational Risk
More code shipped faster, by more autonomous agents, means more can break. Resilient, automated operations are now a board-level priority.
Operational efficiency and reliability remain foundational
59%
are actively incorporating AI into operations
Disruptions are a board-level financial risk
68%
lose $300K+ per hour during major incidents
Resilience investment is a C-suite decision
95%
agree resiliency drives competitive advantage
Source: State of the AI-First Operations Report 2026
AI Is Accelerating Software - and Our Opportunity
Agentic $s ITOM Spend (e.g. agents)
CY25 CY26 CY27 CY28 CY29 CY30
46%
$4
$10
$17
$26
$35
$44
C Y26-30 CAGR
Y/Y: 151% 74% 51% 36% 27%
Source: Google DORA, The ROI of AI-assisted Software Development (2026); Source: Gartner Forecast: Agentic AI in ITOM SW (May 2026); TAM for simple and autonomous agents, CAGR represented for CY26-CY30
The agentic era is paying off
88%
of agentic-AI early adopters already see positive returns
Trusted by Innovators and Category Leaders
Software & | Financial | Retail & | Healthcare | Media & | Travel & | AI |
Technology | Services & | Wholesale | Entertainment | Hospitality | ||
Insurance |
8
The AI-first Digital Operations Platform
$501M
Annual recurring revenue
$124M
Total revenue
24%
Non-GAAP operating margin
26%
Free cash flow margin
15,506
Total paid customers
884
Customers > $100K ARR
98%
Dollar-based net retention
750+/20+
Platform / MCP integrations
See appendix for GAAP-to-non-GAAP reconciliations. Note: As of July 31, 2026
9
Durable Profitability
Non-GAAP Operating Margin
30% Target
See appendix for GAAP-to-non-GAAP reconciliations for FY24, FY25, FY26, and Q2'FY27. For non-GAAP reconciliation for Q1'FY27,
see https://s206.q4cdn.com/635206389/files/doc_financials/2027/q1/FY27-Q1-General-Investor-Presentation.pdf.
10
Gross Margin Performance of 85%
Consistently tracking the long-term target baseline target of 84%-86%
Disciplined and Efficient Operations
Operating cash flow margin
Free cash flow margin
Modeling assistance update:
FY27 free cash flow margin to align with FY26
See appendix for GAAP-to-non-GAAP reconciliations for FY24, FY25, FY26, and Q2'FY27. For non-GAAP reconciliation for Q1'FY27, see https://s206.q4cdn.com/635206389/files/doc_financials/2027/q1/FY27-Q1-General-Investor-Presentation.pdf.
Managing for profitable growth
Returning cash to investors
Share Repurchase Program
$100M
2024 Share Repurchase Program
completed November 2024
$200M
2025 Share Repurchase Program
completed March 2026
$100M
2026 Share Repurchase Program
$8M repurchased,
$92M remaining
Note: As of July 31, 2026
Balance Sheet
$470M
Cash, cash equivalents and investments
$426M*
RPO
Note: As of July 31, 2026
*Of this amount, approximately $309 million is expected to be recognized over the next 12 months. For full RPO maturity details, see Note 11 to the condensed consolidated financial statements included in our Form 10-Q for the second quarter of fiscal 2027.
Flexibility to invest
In operational efficiency, productivity and innovation.
$309M of RPO expected to be recognized over the next 12 months.
Updated Guidance
Issued August 27, 2026
Q3 FY 2027 Full-year FY27*
Revenue $123M - $125M $488.5M - $496.5M
$491.5M - $496.5M
Non-GAAP operating margin | 26.5% - 27.5% | 24 - 25% 25% |
Non-GAAP EPS (diluted) | $0.34- $0.36 | $1.27 - $1.32 $1.33 |
- 26% - $1.37
PagerDuty has not provided the GAAP equivalent or reconciled its expectations as to non-GAAP net income per share attributable to PagerDuty, Inc. common stockholders or our outlook for non-GAAP operating margin to GAAP net income per share attributable to PagerDuty, Inc. common stockholders or GAAP operating margin, respectively, because certain reconciling items such as stock-based compensation expense, employer taxes related to employee stock transactions, acquisition-related expenses, restructuring costs, gains or losses on extinguishment of convertible senior notes, adjustment attributable to redeemable non-controlling interest, and income tax effects and adjustments are out of PagerDuty's control or cannot be reasonably predicted. Accordingly, such reconciliation is not available without unreasonable effort. However, it is important to note that these reconciling items could have a significant effect on PagerDuty's future GAAP results.
Thank You
Resilient, autonomous operations for the AI era.
Investor Relations
investor.pagerduty.com
Newsroom
pagerduty.com/newsroom
Customer stories
pagerduty.com/customers
Product
pagerduty.com
15
Appendix
16
Resources
Investor Relations Page
https://investor.pagerduty.com
PagerDuty Newsroom
https://www.pagerduty.com/newsroom/
PagerDuty Introduction
https://support.pagerduty.com/main/docs/introduction
Knowledge Base
https://support.pagerduty.com/
Case Studies
https://www.pagerduty.com/customers/
Executive Spotlight
https://www.pagerduty.com/in-perspective/
Impact Hub
https://www.pagerduty.com/impact-hub/
Definitions
Annual Recurring Revenue (ARR) - Annualized recurring value of all active contracts at the end of a reporting period.
Customer - A separate legal entity, such as a company or an educational or government institution, that has an active subscription with us or one of our partners to access our platform. In situations where an organization has multiple subsidiaries or divisions, we treat the parent entity as the customer instead of treating each subsidiary or division as a separate customer.
Dollar-Based Net Retention (DBNR) - Calculated as of a period end starting with the ARR from the cohort of all customers as of 12 months prior to such period end. Next, we calculate the ARR from these same customers as of the current period end. Period ARR includes any expansion and is net of downgrades or churn over the last 12 months but excludes ARR from new customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the dollar-based net retention rate.
Gross Retention Rate - Calculated as the annualized impact of ARR lost due to downgrade and churn in the quarter compared to starting ARR.
Reconciliation
PagerDuty, Inc.
Reconciliation of GAAP to Non-GAAP Data
(in thousands, except percentages and per share data) (unaudited)
Three months ended July 31, Year ended January 31, | |||||
2026 | 2025 | 2026 | 2025 | 2024 | |
Non-GAAP gross profit and non-GAAP gross margin | |||||
Gross profit | $104,399 | $104,410 | $418,404 | $387,834 | $352,867 |
Add: | |||||
Stock-based compensation | 665 | 1,213 | 4,283 | 5,984 | 7,586 |
Employer taxes related to employee stock transactions | 13 | 30 | 125 | 162 | 199 |
Amortization of acquired intangible assets | 320 | 601 | 2,700 | 9,075 | 8,614 |
Restructuring costs | - | - | 292 | (2) | 137 |
Non-GAAP gross profit | $105,397 | $106,254 | $425,804 | $403,053 | $369,403 |
Revenue | $124,436 | $123,411 | $492,546 | $467,499 | $430,699 |
Gross margin | 84% | 85% | 85% | 83% | 82% |
Non-GAAP gross margin | 85% | 86% | 86% | 86% | 86% |
Non-GAAP research and development | |||||
Research and development | $30,897 | $30,897 | $126,937 | $141,489 | $139,769 |
Less: | |||||
Stock-based compensation | 5,592 | 9,560 | 36,345 | 44,691 | 44,800 |
Employer taxes related to employee stock transactions | 96 | 183 | 958 | 1,116 | 1,398 |
Acquisition-related expenses | - | 35 | 263 | 978 | 838 |
Amortization of acquired intangible assets | - | - | - | 116 | 350 |
Restructuring costs | - | - | 1,707 | 424 | (26) |
Impairment of long-lived assets | - | - | 1,213 | - | - |
Non-GAAP research and development | $25,209 | $21,119 | $86,451 | $94,164 | $92,409 |
Revenue | $124,436 | $123,411 | $492,546 | $467,499 | $430,699 |
Research and development as a % of revenue | 25% | 25% | 26% | 30% | 32% |
Non-GAAP research and development as a % of revenue | 20% | 17% | 18% | 20% | 22% |
Note: Certain figures may not sum due to rounding.
Reconciliation con't
PagerDuty, Inc.
Reconciliation of GAAP to Non-GAAP Data
(in thousands, except percentages and per share data) (unaudited)
Three months ended July 31, Year ended January 31, | |||||
2026 | 2025 | 2026 | 2025 | 2024 | |
Non-GAAP sales and marketing | |||||
Sales and marketing | $38,325 | $44,456 | $184,040 | $201,821 | $196,769 |
Less: | |||||
Stock-based compensation | 3,064 | 5,285 | 22,420 | 31,185 | 30,345 |
Employer taxes related to employee stock transactions | 55 | 121 | 587 | 773 | 919 |
Amortization of acquired intangible assets | 620 | 632 | 2,520 | 2,530 | 2,459 |
Restructuring costs | - | 22 | 3,296 | 140 | (49) |
Non-GAAP sales and marketing | $34,586 | $38,396 | $155,217 | $167,193 | $163,095 |
Revenue | 124,436 | 123,411 | 492,546 | 467,499 | 430,699 |
Sales and marketing as a % of revenue | 31% | 36% | 37% | 43% | 46% |
Non-GAAP sales and marketing as a % of revenue | 28% | 31% | 32% | 36% | 38% |
Non-GAAP general and administrative | |||||
General and administrative | $24,938 | $25,491 | $101,587 | $104,296 | $112,575 |
Less: | |||||
Stock-based compensation | 5,482 | 9,902 | 34,756 | 44,350 | 44,421 |
Employer taxes related to employee stock transactions | 81 | 127 | 644 | 745 | 982 |
Acquisition-related expenses | - | - | 23 | (1) | 962 |
Amortization of acquired intangible assets | - | - | - | 29 | 87 |
Restructuring costs | - | 51 | 695 | 180 | 132(1) |
Shareholder matters | - | 79 | 2,470 | - | - |
Impairment of long-lived assets | - | - | - | - | 8,483(1) |
Executive transition costs | 3,303 | - | - | - | - |
Non-GAAP general and administrative | $16,072 | $15,332 | $62,999 | $58,993 | $57,508 |
Revenue | 124,436 | 123,411 | 492,546 | 467,499 | 430,699 |
General and administrative as a % of revenue | 20% | 21% | 21% | 22% | 26% |
Non-GAAP general and administrative as a % of revenue | 13% | 12% | 13% | 13% | 13% |
Note: Certain figures may not sum due to rounding.
(1)Certain reclassifications of prior period amounts have been made to conform to current period presentation. We have reclassified a portion of restructuring costs to the impairment
of long-lived assets line item in the relevant non-GAAP reconciliations. The reclassification has no effect on the reported non-GAAP operating income. 20
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