PagerDuty Earnings Report: How This Software Company Beat Q3 Expectations

In its latest quarterly disclosure for the period ending October 2025, PagerDuty (PD) demonstrated strong operational performance by reporting earnings of $0.33 per share, exceeding Wall Street’s projection of $0.24 per share. This marks a year-over-year improvement from the $0.25 per share earned in the same quarter last year. The 37.50% beat represents a notable positive surprise for investors tracking the Internet - Software sector.

The consistent track record of beating EPS projections has become a hallmark of PagerDuty’s recent performance. Looking back at the previous quarter, analysts anticipated $0.2 per share when the company actually delivered $0.3, translating to a 50% upside surprise. Over the trailing four quarters, PagerDuty has successfully surpassed consensus EPS expectations on four separate occasions, demonstrating management’s ability to execute.

Revenue Misses Offset Strong Earnings Performance

While earnings told a positive story, the revenue picture proved more mixed. PagerDuty generated $124.55 million in quarterly revenues, falling slightly short of consensus expectations by 0.32%. The prior year comparison stood at $118.95 million, indicating modest year-over-year growth. Interestingly, the company has exceeded revenue consensus only twice in the last four quarters, suggesting that scaling top-line growth remains a challenge despite strong profitability metrics.

Stock price momentum, however, will ultimately be determined by management’s forward-looking commentary during the earnings call and investor interpretation of guidance for upcoming quarters.

Market Headwinds Weighing on Stock Performance

From a market perspective, PagerDuty shares have declined approximately 18.6% since the beginning of the year, a stark contrast to the S&P 500’s gain of 14% over the same period. This underperformance raises questions about investor sentiment toward the company’s growth trajectory and competitive positioning within the software infrastructure space.

Understanding the Path Forward

For investors considering their position in PagerDuty, the critical variable lies in tracking how analyst expectations evolve in the weeks and months ahead. Historical analysis demonstrates a strong relationship between revisions to earnings estimates and near-term equity performance. The current consensus projects quarterly earnings of $0.23 per share on revenues of $127.23 million for the coming quarter, while the full fiscal year outlook stands at $1.02 per share on $495.59 million in total revenues.

The broader Internet - Software industry currently ranks in the top 31% of all sectors tracked by major research platforms, suggesting the industry backdrop remains favorable for well-positioned companies.

Competitive Landscape: MongoDB in Focus

Within the same industry vertical, MongoDB (MDB) represents another significant player. The database platform company is scheduled to report results for the October 2025 quarter on December 1. MongoDB faces a different earnings challenge, with consensus expectations calling for $0.79 per share—representing a 31.9% decline year-over-year. On the revenue side, MongoDB’s top line is anticipated to grow 11.7% to $591.22 million, demonstrating the divergent growth profiles within the sector.

The contrast between PagerDuty’s earnings strength and MongoDB’s projected earnings headwind illustrates how company-specific execution matters significantly, regardless of overall industry momentum.