PagerDuty, Inc. (PD) Stock

PagerDuty, Inc. (PD) is a Technology stock trading at $12.30 (as of 2026-08-21), with a market capitalization of $948.99M and a trailing P/E of 5.1. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

PagerDuty, Inc. provides a digital operations management platform used to gather operational signals from software-enabled systems and devices, then apply machine learning to relate, analyze, and forecast potential opportunities and issues. The platform is offered in the United States, Japan, and other markets, serving organizations across multiple industries including technology, telecommunications, retail, travel and hospitality, media and entertainment, and financial services.

Understand PagerDuty, Inc.: how it makes money

PagerDuty provides a digital operations management platform that collects software and device signals, then uses machine learning to correlate, process, and predict operational issues and opportunities, and it monetizes this platform through subscription-style annual recurring revenue measured in ARR.

Because revenue is subscription based (tracked as annual recurring revenue), growth and profitability are driven mainly by retention and expansion (dollar-based net revenue retention) plus incremental ARR added each period, rather than one-time sales.

Business quality (Solid): High gross margin (84.3%) supports the platform economics, but operating margin is more modest (7.6%), and overall dollar-based net revenue retention is below 100% (97%), suggesting churn offsets some expansion.

Valuation: Trades at 4× trailing earnings · $1B market cap.

Bull case

Expansion in larger customers: Enterprise Dollar-Based Net Revenue Retention Rate is 130%, which indicates upsells and/or increased spending within enterprise accounts.
Recurring revenue durability: Annual Recurring Revenue is 0.5 USD_B, and Incremental Annual Recurring Revenue Added in the Period is 0.01 USD_B, supporting an ongoing recurring revenue base.
Customer growth signals: Net New Paid Customers is 133, and New Customers is 600, indicating continued addition of paying customers during the period.

Bear case

Overall retention below 100%: Dollar-Based Net Revenue Retention Rate is 97%, which implies existing customers spend slightly less on net across the measured period.
Operating profitability is not yet high: Operating margin is 7.6%, which leaves less room for operating cost pressure if growth slows or investment needs rise.
ARR concentration risk at higher spend tiers: The company reports 860 customers spending over $100,000 ARR and 79 customers spending over $1,000,000 ARR, which suggests meaningful revenue contribution could depend on the largest accounts.

Valuation — source: SEC EDGAR (first-party)
Price	$12.30
Market Cap	$948.99M
P/E Ratio	5.1
EV / EBITDA	19.7
Price / Book	4.38
Price / Sales	1.92
FCF Yield	13.2%
DCF Value (model)	$8.92
DCF Upside vs Price	-27.5%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$492.55M
Net Margin	35.2%
Revenue Growth (YoY)	1.0%
EPS Growth (YoY)	-285.7%
FCF Growth (YoY)	43.3%

Financial Health — source: SEC EDGAR
Altman Z-Score	1.15 (distress)
Piotroski F-Score	7/9 (strong)

Valuation vs Sector & Industry
Stock P/E	5.1
Sector P/E (Technology)	34.0
Industry P/E (Business Services)	30.2
vs Sector	-85.0%
vs Industry	-83.1%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	VANGUARD GROUP INC ($171.31M)
Institutional Holders Tracked	10
Congressional Trades (recent)	1

Company
Sector	Technology
Industry	Business Services
CEO	Jennifer G. Tejada
Employees	1,242
Country	US
IPO Date	2019-04-11

Related Companies (Business model: SaaS / Subscription Software (Enterprise); 8 closest by market cap; US-domiciled)

Data as of 2026-08-21.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.