<div id="readability-page-1"><div><ul> <li>Earlier this month, PagerDuty reported third-quarter fiscal results that beat profit expectations but missed on revenue, highlighted reduced dollar-based net retention, and cut full-year revenue guidance after underestimating customer budget pressures and seat reductions.</li> <li>The disclosure of these retention and guidance headwinds has now drawn a federal securities law investigation and prompted diverging analyst opinions on the sustainability of PagerDuty’s growth story.</li> <li>We’ll now examine how the reduced net retention and ensuing securities-law investigation may reshape PagerDuty’s previously growth-focused investment narrative.</li> </ul><p>AI is about to change healthcare. These 29 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.</p><h2>PagerDuty Investment Narrative Recap</h2><p>To own PagerDuty today, you need to believe its Operations Cloud remains central to how modern teams handle always‑on digital services, even as customers tighten budgets and trim seats. The recent revenue miss, lower net retention, and reduced guidance all place more weight on near term execution, while the securities‑law investigation adds headline and legal risk around management’s credibility at exactly the time investors are watching retention trends most closely.</p> <p>The most relevant recent development is Levi &amp; Korsinsky’s federal securities law investigation following PagerDuty’s disclosure of weaker dollar‑based net retention and lowered full year revenue projections. This compounds existing concerns about revenue stability and upsell potential, and it sits uncomfortably alongside earlier optimism around partnerships, AI features, and usage based pricing as possible growth drivers, making customer expansion and retention the key metrics many investors will likely prioritize in upcoming results.</p> <p>Yet while product and partnerships might support the long term story, investors should be aware of how intensified seat optimization could...</p> <p>Read the full narrative on PagerDuty (it's free!)</p><p>PagerDuty’s narrative projects $572.1 million revenue and $74.9 million earnings by 2028.</p><p>Uncover how PagerDuty's forecasts yield a $16.75 fair value, a 31% upside to its current price.</p><h2>Exploring Other Perspectives</h2><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/0a96f12b-e726-4c66-a0d4-293726043176/chart/quote-price?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/0a96f12b-e726-4c66-a0d4-293726043176/chart/quote-price"/><figcaption>PD 1-Year Stock Price Chart</figcaption></figure> <p>Three fair value estimates from the Simply Wall St Community span roughly US$12 to about US$27, underscoring how far apart individual views can be. When you set that against the recent hit to dollar based net retention and the legal overhang, it highlights why many market participants are rethinking how resilient PagerDuty’s growth and profitability might really be over time and why it is worth weighing several perspectives before forming a view.</p><p>Explore 3 other fair value estimates on PagerDuty - why the stock might be worth over 2x more than the current price!</p><h2>Build Your Own PagerDuty Narrative</h2><p>Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.</p><ul><li>A great starting point for your PagerDuty research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.</li><li>Our free PagerDuty research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate PagerDuty's overall financial health at a glance.</li></ul><h2>Want Some Alternatives?</h2><p>Opportunities like this don't last. These are today's most promising picks. Check them out now:</p><ul><li>The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.</li><li>We've found 13 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.</li><li>Outshine the giants: these 25 early-stage AI stocks could fund your retirement.</li></ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><p>Mobile Infrastructure for Defense and Disaster</p><p>The next wave in robotics isn't humanoid. 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<p>PagerDuty faces challenges with reduced net retention and a federal securities law investigation following its third-quarter fiscal results. The company missed revenue expectations and cut full-year guidance, raising concerns about its growth sustainability. Analysts are divided on PagerDuty's future, with legal risks and customer budget pressures impacting its investment narrative. The investigation by Levi & Korsinsky highlights revenue stability concerns, while partnerships and AI features may support long-term growth. Investors are urged to consider multiple perspectives on PagerDuty's resilience and profitability.</p>

The Bull Case For PagerDuty (PD) Could Change Following Retention Pressures And A Securities Probe