PagerDuty (PD) Q4 2025 earnings summary

Executive summary

• Achieved third consecutive year of non-GAAP profitability, with FY25 revenue at $467.5M, up 9%, and ARR at $494M; Q4 revenue reached $121.4M.

• Non-GAAP operating margin improved to 18% for FY25, with Q4 non-GAAP operating income at $22.3M (18.3% margin); free cash flow margin expanded to 23%.

• Multi-product and enterprise customers drive growth: 65% of ARR from multi-product users, 849 customers with ARR over $100K, and 72 customers with ARR over $1M.

• Strategic shift to multi-year, multi-product enterprise partnerships, with 71% of ARR from customers spending over $100K.

• Announced $150M share repurchase program, launched new AI/ML and Agentic AI offerings, and made key leadership changes.

Financial highlights

• Q4 revenue was $121.4M, up 9.3% year-over-year; full-year revenue was $467.5M; international revenue contributed 28%.

• Q4 non-GAAP operating income was $22.3M (18.3% margin); full-year non-GAAP operating income was $82.7M (17.7% margin).

• Q4 free cash flow was $28.6M (23.5% margin); full-year free cash flow was $108.4M (23.2% margin).

• Q4 non-GAAP gross margin was 86.5%; full-year non-GAAP gross margin was 86.2%.

• Ended Q4 with $570.8M in cash, cash equivalents, and investments.

Outlook and guidance

• Q1 FY26 revenue expected between $118M–$120M, representing 6–8% growth; operating margin of 15%.

• Full-year FY26 revenue guidance is $500M–$507M (7–8% growth), with operating margin of 19–20%.

• FY26 non-GAAP net income per diluted share projected at $0.90–$0.95.

• Long-term non-GAAP operating margin target updated to 20–30%.

• 12-month billings growth for Q1 anticipated at approximately 8%.