Morgan Stanley Maintains Underweight on PagerDuty, Raises Price Target to $10

IT Operations Analytics Market Report 2026: Capitalize on the AI-led rebound from $23.43 billion in 2026 to $30.13 billion by 2030 as Microsoft, IBM, Cisco, Oracle and Splunk reshape automated incident management and hybrid-cloud performance

The global IT operations analytics market is projected to decline from $24.53 billion in 2025 to $23.43 billion in 2026 due to high implementation costs and talent shortages, but is expected to recover and reach $30.13 billion by 2030 at a 6.5% CAGR. Growth will be driven by AI/ML integration, cloud adoption, and automated incident management capabilities.

PagerDuty Reports Q2 2027 Results: Full Earnings Call Transcript

On Thursday, PagerDuty (NYSE:PD) discussed second-quarter financial results during its earnings call. The full transcript is provided below. Benzinga APIs provide real-time access to earnings call transcripts and

PagerDuty's 2026 Outlook: Operational Discipline and New AI Opportunities Sustains Profitable Growth Model

PagerDuty has achieved five consecutive quarters of GAAP profitability and generated $33 million in free cash flow, earning a Superscore of 72. However, revenue growth has stalled at less than 1% year-over-year, and the company faces competitive pressure from platform giants bundling incident response tools. The company is transitioning to consumption-based pricing and positioning AI as a growth driver to reignite expansion.

PagerDuty shares are trading higher after the company reported better-than-expected Q2 financial results and raised its FY2027 adjusted EPS and FY2027 sales guidance above estimates. Also, Morgan Stanley and Canaccord Genuity raised their respective price targets on the stock.