PagerDuty, Inc. (PD) saw its stock plummet 16.96% during Wednesday's intraday trading, marking one of its steepest single-day declines this year. The drop extended losses from pre-market sessions, reflecting heightened investor concerns.
The digital operations management company triggered the sell-off after cutting its fiscal 2026 revenue guidance to $490–492 million, below both its prior outlook ($493–497 million) and analyst expectations ($495.5 million). This revision, attributed to pricing and go-to-market transition challenges, overshadowed a Q3 earnings beat. Additionally, the announcement of CFO Owen Howard Wilson's retirement raised questions about leadership stability during a critical operational transition.
Analysts at Morgan Stanley, RBC, and TD Cowen swiftly responded by lowering price targets, with Morgan Stanley reducing its target to $16 from $17 while maintaining an Equal Weight rating. The collective actions underscore growing skepticism about PagerDuty's near-term growth trajectory amid these headwinds.
Comments