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PagerDuty’s Profit Turnaround And New AWS Resilience Status Might Change The Case For Investing In PD

Simply Wall St · 2d ago
  • In late November 2025, PagerDuty reported third-quarter results showing higher sales and a move from a loss to profitability, raised its full-year 2026 earnings guidance, and later announced it had become one of the first software partners to achieve the AWS Resilience Services Competency.
  • The combination of stronger earnings, an upgraded profit outlook, and AWS recognition for resilience services highlights how PagerDuty is tying incident management, resilience engineering and cloud expertise more tightly together for enterprise customers.
  • We’ll now examine how PagerDuty’s stronger profitability outlook and new AWS Resilience Services Competency shape its broader investment narrative.

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PagerDuty Investment Narrative Recap

To own PagerDuty, you need to believe that incident management and resilience will remain essential as digital infrastructure becomes more complex, and that the company can convert this role into durable, profitable growth despite slower revenue guidance. The strongest near term catalyst is its improving profitability and margin outlook, while the biggest risk remains pressure on revenue growth from seat optimization and the shift to usage based pricing. The latest earnings and AWS news do not materially change that balance.

The most relevant recent update is PagerDuty’s raised full year 2026 earnings guidance, which points to higher profitability even as revenue growth moderates. That improved margin profile matters for how investors weigh the AWS Resilience Services Competency: it suggests PagerDuty is not only deepening its role in mission critical workloads, but doing so with greater earnings leverage, which could support confidence in the business while it works through customer seat compression and pricing transitions.

Yet even with stronger profits and new AWS validation, investors should still be aware of how intensified seat optimization and usage based pricing could...

Read the full narrative on PagerDuty (it's free!)

PagerDuty’s narrative projects $572.1 million revenue and $74.9 million earnings by 2028.

Uncover how PagerDuty's forecasts yield a $18.50 fair value, a 58% upside to its current price.

Exploring Other Perspectives

PD Community Fair Values as at Dec 2025
PD Community Fair Values as at Dec 2025

Three Simply Wall St Community valuations cluster between US$18.50 and US$26.53 per share, reflecting a wide spread in expectations. You can set these against the core risk that ongoing seat optimization and pricing changes may keep revenue growth subdued and cash flows choppy.

Explore 3 other fair value estimates on PagerDuty - why the stock might be worth over 2x more than the current price!

Build Your Own PagerDuty Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.