PagerDuty (PD) falls 54.7% as analysts flag weak billings, stalled revenue outlook

PagerDuty (PD) shares have fallen 54.7% over the six months ended May 13, 2026, to $7.31, as softer quarterly results and slowing demand raised concerns about the software company’s growth profile. The company reported fourth-quarter billings of $150.7 million, while billings growth averaged 2.5% year over year over the past four quarters, signaling weaker customer acquisition or retention. Sell-side analysts expect revenue to stall over the 12 months through May 2027, a slowdown from PagerDuty’s 18.2% annualized revenue growth over the past five years. Analysts also expect cash conversion to weaken, with consensus estimates pointing to a decline in free cash flow margin to 19.7% from 20.8% over the past 12 months. The stock trades at 1.3 times forward sales, but the report cited weak fundamentals and downside risk despite the lower valuation.