PagerDuty Q2 FY27 slides: profitability rises as AI vision takes shape

PagerDuty reported its Q2 FY27 results on August 27, 2026, surpassing earnings estimates with adjusted earnings of $0.32 per share and revenue of $124.4 million. The company also reached the $500 million annual recurring revenue milestone for the first time. Despite the positive earnings, investor sentiment was mixed due to flat revenue growth.

The company's profitability improved, with an 85% gross margin and a 24% non-GAAP operating margin, while customer base expanded to 15,506 paid customers. PagerDuty's Q2 results highlight its progress in AI-driven autonomous operations, focusing on three key pillars: data at scale, human-plus-agent incident response, and continuous improvement.

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