PagerDuty Faces Investigation After Q3 Earnings Cut, Stock Plummets 23.3%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 04 2025
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Source: Newsfilter
- Financial Performance Decline: PagerDuty's Q3 fiscal 2026 report, released on November 25, 2025, revealed a drop in dollar-based net retention rate to 100% from 107% in 2024, indicating negative impacts from customer churn and budget caution on revenue.
- Guidance Downgrade: The company revised its full-year revenue outlook to $490 million to $492 million, down from $493 million to $497 million, reflecting a mere 5% year-over-year growth rate and signaling weak market demand.
- Stock Price Volatility: Following the disappointing earnings report, PagerDuty's stock plummeted by $3.54, or 23.3%, closing at $11.64 per share on November 26, 2025, resulting in significant losses for investors.
- Legal Investigation Initiated: The Law Offices of Howard G. Smith announced an investigation into PagerDuty, aiming to provide legal support for affected investors, potentially leading to further lawsuits to recover losses.
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Analyst Views on PD
Wall Street analysts forecast PD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PD is 16.14 USD with a low forecast of 12.00 USD and a high forecast of 20.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
4 Buy
4 Hold
1 Sell
Moderate Buy
Current: 10.760
Low
12.00
Averages
16.14
High
20.00
Current: 10.760
Low
12.00
Averages
16.14
High
20.00
About PD
PagerDuty, Inc. is engaged in digital operations management platform that manages urgent and mission-critical work for digital business. The Company collects data and digital signals from virtually any software-enabled system or device and leverages enables machine learning to correlate, process, and predict opportunities and issues. It uses incident response, event management, and automation, the Company brings together the right people with the right information so they can resolve issues and act on opportunities in minutes or seconds from wherever they are. The PagerDuty Operations Cloud consists of PagerDuty Incident Management, AIOps, Process Automation, and Customer Service Operations. PagerDuty Incident Management provides a real-time view across the status of a digital service while incorporating intelligent noise reduction to remove false positives. PagerDuty Process Automation provides a centralized design time and run time environment for orchestrating automated workflows.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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PagerDuty Director Plans to Sell $6.37 Million in Common Stock via Form 144
Stock Sale Announcement: Dan Alexander Rusolomon plans to sell 533,333 shares of PagerDuty common stock on January 15, with an estimated market value of approximately $6.37 million.
Reduction in Shareholding: Rusolomon has reduced his shareholding in PagerDuty by 266,667 shares since December 30, 2025, with a total value of around $3.56 million.
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