PD Tops Q1 Estimates as New CEO Takes Charge, Usage-Based Pricing Gains Traction

PagerDuty (NYSE:PD) on May 29, 2026 reported fiscal first-quarter revenue of $121 million, flat year-over-year but exceeding market expectations. Non-GAAP earnings reached $0.32 per share, beating analyst consensus by 29.1%. The company projected next-quarter revenue of about $123 million, in line with estimates. Newly appointed CEO John DiLullo attributed the outperformance to early traction from a usage-based pricing model and growing demand from AI-native companies. The digital operations platform provider highlighted increased adoption among large enterprises. Shares rose to $8.38 from $7.43 prior to the release. Management expects continued growth from its Operations Cloud platform and multi-product expansion. Former CEO Jennifer Tejada noted that a shift toward AI-first operations creates opportunities in previously slow-moving sectors.