By Connor Hart

Shares of PagerDuty surged after the company raised its full-year adjusted earnings outlook and swung to a profit in the first quarter.

The stock rose 24% to $9.22 during Friday's regular trading session. Despite the gain, shares have lost more than a third of their value in the past year.

The cloud-computing company late Thursday said it now expects adjusted earnings of $1.27 to $1.32 a share for the year, up from a prior forecast of $1.23 to $1.28 a share. It continues to anticipate revenue of $488.5 million to $496.5 million.

Analysts polled by FactSet had been looking for adjusted earnings of $1.29 a share on revenue of $493.5 million.

For the current quarter, PagerDuty guided for adjusted earnings of 29 cents to 31 cents a share on revenue of $122 million to $124 million. That compares to analyst views for adjusted earnings of 32 cents a share on revenue of $115.9 million.

The outlooks came as the company swung to a first-quarter profit of $5.28 million, or 13 cents a share, from a loss of $7.16 million, or 7 cents a share, a year earlier. Stripping out one-time items, adjusted earnings of 32 cents a share topped Wall Street models for 25 cents a share.

Revenue ticked up 1% to $121 million, ahead of analyst expectations for $119.5 million.

"Our expanding AI offers and the introduction of the new Operations Cloud usage-based package, further strengthens our platform and positions PagerDuty to accelerate long-term growth," Chief Executive Jennifer Tejada said.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

May 29, 2026 11:48 ET (15:48 GMT)

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