PagerDuty Analysts Cut Their Forecasts After Q2 Results

Core Insights - PagerDuty reported mixed second-quarter results, with adjusted earnings of 30 cents per share, surpassing market estimates of 21 cents, while sales of $123.411 million fell short of expectations of $123.639 million [1] - The company provided third-quarter guidance for adjusted EPS between 24 cents and 25 cents, with expected sales ranging from $124 million to $126 million [1] Group 1 - PagerDuty achieved GAAP profitability in Q2 and experienced solid growth in international markets, along with customer additions exceeding last year's total [2] - The company is positioned as a key player in the emerging AI ecosystem, serving as a preferred real-time operations platform for enterprises and AI-native companies [2] - Following the earnings announcement, PagerDuty shares increased by 5.5%, reaching a trading price of $16.44 [2] Group 2 - Analysts adjusted their price targets for PagerDuty post-earnings, with Canaccord Genuity lowering its target from $21 to $19 while maintaining a Buy rating [8] - RBC Capital maintained an Outperform rating but reduced its price target from $20 to $18 [8] - Baird maintained a Neutral rating and cut its price target from $18 to $16 [8]