PagerDuty's Q3 Revenue Jumps 5%

By Bobby Samwell • Wednesday, November 26 06:03 • Permanent Link

PagerDuty, Inc. has reported its financial results for the third quarter of fiscal 2026, ended October 31, 2025. The company announced that its third quarter revenue increased by 5% year over year to $125 million. Additionally, the annual recurring revenue ("ARR") grew by 3% year over year to $497 million.

In terms of operating income, PagerDuty reported that its third quarter operating income was $8 million. However, the non-GAAP operating income was higher at $36 million. The net income per diluted share attributable to PagerDuty, Inc. common stockholders was reported as $1.69, while the non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders was $0.33.

The company also reported that its net cash provided by operating activities was $24.8 million, and free cash flow was $20.9 million. Moreover, as of October 31, 2025, PagerDuty’s cash, cash equivalents, and investments totaled $547.8 million.

Looking at specific metrics, the ARR as of October 31, 2025, grew by 3% year over year to $497 million. The number of customers with ARR over $100 thousand grew by 5% to 867 compared to the same period in the previous year. However, the dollar-based net retention rate was reported as 100% as of October 31, 2025, compared to 107% in the previous year.

PagerDuty also provided some insights into its financial outlook, expecting a total revenue of $122.0 million * $124.0 million for the fourth quarter of fiscal 2026, and a total revenue of $490.0 million * $492.0 million for the full fiscal year 2026.

In terms of leadership and industry recognition, the company appointed Todd McNabb as Chief Revenue Officer and named Callum Eade as Vice President, APAC Sales. PagerDuty was also recognized with several awards such as the 2025 U.S. Fortune Best Workplaces for Women for Small and Medium Organizations and the 2025 Fortune Best Workplaces in Technology for Small and Medium Organizations.

Following these announcements, the company's shares moved 1.75%, and are now trading at a price of $15.12. For more information, read the company's full 8-K submission here.

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