PagerDuty (PD) Q3 Earnings Surpass Estimates

Core Insights - PagerDuty reported quarterly earnings of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.24 per share, and showing an increase from $0.25 per share a year ago, resulting in an earnings surprise of +37.50% [1] - The company posted revenues of $124.55 million for the quarter ended October 2025, slightly missing the Zacks Consensus Estimate by 0.32%, but up from $118.95 million year-over-year [2] - PagerDuty has surpassed consensus EPS estimates in all four of the last quarters, while it has topped consensus revenue estimates twice during the same period [2] Future Outlook - The immediate price movement of PagerDuty's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.23 on revenues of $127.23 million, and for the current fiscal year, it is $1.02 on revenues of $495.59 million [7] - The Zacks Rank for PagerDuty is currently 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Internet - Software industry, to which PagerDuty belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]