PagerDuty Inc. Common Stock (PD)

FairStock Score: 71/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-style investor, I ask whether the business is understandable, durable, and priced with a margin of safety. PagerDuty's digital operations platform is mission-critical: it helps companies detect and resolve technology incidents. That can create switching costs, and the financials show progress: fiscal 2026 revenue was $492.5M, net income $173.4M, diluted EPS $1.87, and TTM free cash flow was $117.5M, a 9.0% FCF yield on a $1.3B market cap. The Lynch category is TURNAROUND because it returned to profit after losses in fiscal 2024 and 2025. But I am skeptical of the headline P/E of 8.22. Fiscal Q3 2026 produced $161.6M of net income, while fiscal Q2 2027 produced just $7.8M, or $0.06 diluted EPS, and fiscal Q1 2027 produced $5.3M. Revenue growth is almost flat: fiscal Q2 2027 revenue was $124.4M versus $123.4M in fiscal Q2 2026. FairStock's Graham Number is $11.61, so at the 2026-10-13 close of $16.68 the margin of safety is -43.67%. The Piotroski F-Score of 7/9 is decent, but the Altman Z-Score of 1.04, D/E of 1.67, and ROCE of 2.29% warn that this is not a fortress balance sheet. I see a cash-generative but thinly profitable turnaround trading near its 52-week high, not a classic bargain.

In plain English: PagerDuty sells software that helps companies spot and fix digital outages. The business is now profitable and generates cash, but sales are growing only very slowly and the latest quarter's profit was small. At $16.68, the price looks high compared with a conservative value check, even though one headline profit measure makes it look cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2027 10-Q (period ended 2026-07-31) · fiscal Q1 2027 10-Q (period ended 2026-04-30) · fiscal Q3 2026 10-Q (period ended 2025-10-31) · fiscal Q2 2026 10-Q (period ended 2025-07-31) · FY2026 10-K (period ended 2026-01-31) · FY2025 10-K (period ended 2025-01-31) · FY2024 10-K (period ended 2024-01-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer