Can PagerDuty Inc (PD)’s Pricing Model Shift Spark Growth?

On March 13, TD Cowen chopped its terms people connected PagerDuty Inc (NYSE:PD) to $10 from $20 but reiterated its Buy standing connected the stock. The steadfast pointed to PagerDuty’s subdued gross guidance arsenic a origin for the terms people reduction.

TD Cowen expert Andrew Sherman pointed retired that PagerDuty forecast level gross maturation for fiscal 2027, yet the Street had been projecting fiscal 2027 gross maturation of 4%.

PagerDuty, Inc. (NYSE:PD) reported fourth‑quarter and full‑year fiscal 2026 results connected March 12, covering the play ended January 31, 2026. It posted fiscal Q4 2026 adjusted EPS of $0.29, supra the anticipated $0.24. Revenue of $124.8 cardinal accrued 2.7% YoY came supra the expected $123.15 million. For fiscal 2026 full-year, the bundle institution posted adjusted EPS of $1.16 connected gross of $492.5 million, which accrued 5.4% YoY.

For fiscal 2027, PagerDuty forecast adjusted EPS of $1.23 – $1.28. It anticipates gross successful the set of $488.5 cardinal – $496.5 million, which points to level maturation astatine the midpoint.

While the anemic fiscal 2027 gross guidance caused TD Cowen to little its terms people connected PagerDuty stock, the steadfast noted that the company’s pricing exemplary displacement is showing affirmative signals.

PagerDuty is transitioning to a usage-based pricing exemplary from a seat-based pricing model. This comes arsenic it has faced headwinds successful the seat-based model. TD Cowen believes the displacement has started well, and that the faster the institution transitions to the usage-based model, the amended placed it volition be.

PagerDuty Inc (NYSE:PD) is an American bundle institution that specializes successful providing cloud-based AI-powered incidental absorption platforms for IT departments. It enables IT operations teams to detect, process, and hole strategy outages faster. PagerDuty is headquartered successful California, and has offices successful different countries.

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