What guidance did management provide for the remainder of FY2026, and how does it compare to analyst consensus and previous guidance?

Management guidance:

During the Q2 FY‑2026 call, PagerDuty’s CEO Jennifer Tejada said the company now expects to finish FY‑2026 with revenue of $800 million‑$820 million (≈ 19‑22 % YoY growth) and GAAP earnings of $0.38‑$0.40 per share. The outlook also includes a non‑GAAP operating margin of roughly 20 % and a target of adding ~1,600 net new paid customers by year‑end.

Comparison to consensus and prior guidance:

- Analyst consensus (LSEG/FactSet) was $795 million in revenue and $0.36 EPS, so management’s top‑end view is ~2‑3 % above the consensus and the low end is roughly on‑par.

- Prior guidance (issued at the Q1 FY‑2026 release) projected $750 million‑$770 million of revenue and $0.33‑$0.35 EPS, meaning the new range represents a ~5‑9 % upward revision on revenue and a ~10‑15 % lift on earnings. The revised margin target is also a step up from the ~17 % non‑GAAP margin hinted at in the previous outlook.

Trading implications:

The upgrade places PagerDuty ahead of the consensus story and underscores the momentum from its first GAAP‑profitable quarter, giving the stock a clear short‑term catalyst. Momentum‑driven technicals are already in a bullish channel (above the 50‑day EMA and holding near its 200‑day EMA), and the forward‑PE implied by the new guidance still sits at a modest 30‑32× forward earnings—well below the sector median of ~40×. For risk‑adjusted exposure, a buy‑on‑dip around the current level (≈ $44‑$45) with a target of $55‑$58 (≈ 30 % upside) is justified, while a stop‑loss just below the $40 support line protects against a potential pull‑back if the Q3 results miss the raised expectations.