PagerDuty (PD) just gave investors a reason to cheer. The digital operations management platform reported its first-quarter results after Thursday's closing bell, and the numbers were better than anyone expected.
The company posted quarterly earnings of 32 cents per share, crushing the analyst consensus estimate of 25 cents by 28%. Revenue came in at $120.97 million, also beating the Street's forecast of $119.6 million.
But it wasn't all sunshine. The company's annual recurring revenue (ARR) as of April 30, 2026, remained flat year over year at $496 million. Customers with ARR over $100,000 grew just 1% to 860, up from 848 a year earlier. The dollar-based net retention rate slipped to 97% from 104% in the prior year, suggesting existing customers are spending slightly less on average.
On the bright side, total paid customers inched up to 15,380 from 15,247, and when you include free users, the total customer base topped 36,000 — representing about 14% growth year over year. Remaining performance obligations stood at $441 million, with 72% expected to be recognized as revenue over the next 12 months.
"Our Q1 results exceeded guidance for both revenue and non-GAAP operating margin, reflecting continued execution against our strategic and operational priorities," said Jennifer Tejada, executive chair of PagerDuty. "Our expanding AI offers and the introduction of the new Operations Cloud usage-based package further strengthens our platform and positions PagerDuty to accelerate long-term growth."
Investors seemed to buy that message. PagerDuty stock climbed 12.9% to $8.40 in Thursday's extended trading session.
