PagerDuty Announces Layoffs Amid Q2 Earnings Beat, Stock Rises
PagerDuty (PD) reported better-than-expected second-quarter results despite only a 1% year-over-year revenue increase to $124.4 million. The company announced plans to lay off approximately 15% of its workforce as part of cost-cutting measures aimed at improving profitability and boosting margins, which reached 24% in Q2. Investors responded positively, with PD stock rising over 5% year-to-date. The restructuring is expected to prioritize sales and engineering investments while generating significant run-rate savings. PagerDuty also raised its full-year FY2027 operating-margin outlook to between 25% and 26%. Cantor Fitzgerald upgraded the price target for PD shares to $15, citing strong recurring revenue growth that surpassed $500 million in Q2. Wall Street's consensus rating on PagerDuty was a
Tickers: $PD
Topics: layoffs operating margins restructuring stock performance