PagerDuty, Inc. (NYSE: PD) reported fourth-quarter results that exceeded analyst expectations, but shares plunged more than 12% in premarket trading Friday after the company issued fiscal 2027 revenue guidance below market estimates.
The AI-focused operations management company posted adjusted earnings of $0.29 per share, beating the consensus estimate of $0.24. Revenue rose 2.7% year over year to $124.8 million, exceeding the analyst forecast of $123.15 million.
However, PagerDuty projected fiscal 2027 revenue between $488.5 million and $496.5 million. The midpoint of $492.5 million fell well short of the $506.9 million consensus estimate.
For the first quarter of fiscal 2027, the company forecast revenue between $118.0 million and $120.0 million, with a midpoint of $119.0 million also below analyst expectations.
The company guided adjusted earnings per share of $0.23 to $0.25 for the first quarter and $1.23 to $1.28 for the full fiscal year, compared with the consensus estimate of $1.19.
PagerDuty reported adjusted operating income of $29.8 million during the quarter, representing an operating margin of 23.9%. Annual recurring revenue increased 1% year over year to $498.7 million, while the dollar-based net retention rate declined to 98% from 106% a year earlier.
