PagerDuty, Inc. (NYSE:PD) has announced its financial results for the second quarter of fiscal 2026, ended July 31, 2025. The company reported a 6.4% year-over-year increase in revenue to $123.4 million. Operating income for the quarter was $3.6 million with an operating margin of 2.9%. Non-GAAP operating income stood at $31.4 million with a non-GAAP operating margin of 25.4%. Net income per diluted share attributable to PagerDuty, Inc. common stockholders was $0.10, while non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders was $0.30.
The company's annual recurring revenue (ARR) grew 5% year over year to $499 million. Customers with ARR over $100 thousand increased by 6% to 868 as of July 31, 2025, compared to 820 in the same period last year. The dollar-based net retention rate was 102% as of July 31, 2025, down from 106% in the prior year. PagerDuty's total paid customers reached 15,322 as of July 31, 2025, compared to 15,044 in the previous year. Additionally, the company's free and paid customers totaled more than 33,000 as of July 31, 2025, representing approximately 13% growth since July 31, 2024.
PagerDuty's remaining performance obligations were reported at $425 million as of July 31, 2025, with the company expecting to recognize revenue of approximately $295 million (69%) over the next 12 months, $100 million (24%) over months 13 to 24, and the remainder thereafter.
The company also announced the appointment of Todd McNabb as Chief Revenue Officer, who will lead the global go-to-market strategy, driving revenue growth and retention, effective September 29, 2025.
Looking ahead, for the third quarter of fiscal 2026, PagerDuty expects total revenue of $124.0 million * $126.0 million, representing a growth rate of 4% * 6% year over year. For the full fiscal year 2026, the company anticipates total revenue of $493.0 million * $497.0 million, compared to the previous guidance of $493.0 million * $499.0 million, representing a growth rate of 5% * 6% year over year. The non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders is expected to be $1.00 * $1.04, up from $0.95 * $1.00.
PagerDuty has also achieved several milestones and recognitions, including being awarded as a 2025 Fortune Best Workplaces in the Bay Area for small and medium organizations and named as an inspiring workplace in North America for the fourth consecutive year.
The company's financial outlook and performance metrics demonstrate its continued growth and strategic initiatives in the digital operations management space. As a result of these announcements, the company's shares have moved -4.65% on the market, and are now trading at a price of $15.37. For the full picture, make sure to review PagerDuty's 8-K report.
