PagerDuty
PagerDuty is a public SaaS platform for incident management and operations automation, founded in 2009 by three former Amazon engineers—Alex Solomon, Andrew Miklas, and Baskar Puvanathasan—who built the tool to solve the fragile on-call processes they encountered at Amazon.
Profile
PagerDuty manages incident response and on-call operations for large enterprises, using AI to automate alert triage and incident resolution workflows.
PagerDuty is a public SaaS platform for incident management and operations automation, founded in 2009 by three former Amazon engineers—Alex Solomon, Andrew Miklas, and Baskar Puvanathasan—who built the tool to solve the fragile on-call processes they encountered at Amazon. The company went public on NYSE in April 2019 at $24 per share, opening at $38.25, and has since scaled to serve over 30,000 organizations globally. As of Q1 fiscal 2027 (ended April 30, 2026), PagerDuty reported $496 million in annual recurring revenue, though growth has decelerated significantly—from 7% year-over-year in early 2025 to flat by spring 2026.
The company posted its fourth consecutive quarter of GAAP profitability in Q1 FY2027 with $121 million in quarterly revenue. PagerDuty's product portfolio centers on incident management, alert noise reduction via AIOps, and enterprise workflow automation. In 2025, the company pivoted heavily toward agentic AI, introducing autonomous Site Reliability Engineer (SRE) agents, operational insights agents, and scheduling optimization agents across its Operations Cloud platform.
Leadership transitioned in May 2026 when John DiLullo, formerly CEO of Deepwatch, replaced long-serving CEO Jennifer Tejada, who moved to Executive Chair; Tejada had grown the business from sub-$50 million to nearly $500 million in revenue over her tenure. The company has recovered from a January 2023 layoff of 7% of its workforce, when CEO Tejada's insensitive use of Martin Luther King Jr. quotes in the announcement sparked public backlash and apologies. PagerDuty's customer base spans enterprises like Zoom, Twilio, Cloudflare, SAP, AWS, the New York Stock Exchange, and Ryanair, with particularly strong adoption in financial services and mission-critical operations. As of May 2026, the company is expanding its AI partner ecosystem with integrations involving Anthropic, Cursor, and LangChain, signaling a strategic bet on AI-driven autonomous operations.
Who buys this
- Enterprise SaaS and cloud infrastructure firms (Zoom, Twilio, Cloudflare, AWS)
- Financial services and trading operations (New York Stock Exchange, Checkout.com, Chicago Trading Company)
- Global logistics and travel (Ryanair, TUI, IAG Loyalty)
- Retail and e-commerce with high availability needs (John Lewis, Specsavers, Bukalapak)
- Mission-critical public-sector and non-profit operations (Mercy Corps, accesSOS, Watch Duty)
Publicly disclosed clients
- Zoom
- Twilio
- Cloudflare
- New York Stock Exchange
- SAP
- Ryanair
- DraftKings
- AWS (partner)
Strengths and what to watch
Strengths
- Largest installed base in incident management: 30,000+ organizations, with deep enterprise relationships and proven ROI (74% less downtime, 249% ROI on Operations Cloud)
- AI-first platform advantage: launched autonomous SRE agents in 2025 with memory-enabled triage, backed by partnerships with Anthropic and LangChain to extend agent ecosystem
- Consistent SaaS profitability: fourth consecutive quarter of GAAP profitability by Q1 FY2027, with stable ARR of $496–$499M despite growth deceleration
Watch for
- ARR growth stalled to 0% by Q1 FY2027 after declining from 7% YoY in early 2025—slowdown reflects customer caution and longer sales cycles, particularly in mid-market
- Employee retention risks: 2023 layoff backlash and CEO leadership transition in May 2026; Glassdoor reviews (3.6/5 stars) cite ongoing organizational instability and concerns about AI replacing human roles
- Competitive pressure from integrated observability stacks: Datadog (115%+ NRR, 130%+ customer expansion) and New Relic offer integrated incident management, potentially commoditizing PagerDuty's core function
Recent moves
- 2mo ago PagerDuty announces Q1 FY2027 financial results and expands AI integration ecosystem with partnerships with Anthropic, Cursor, and LangChain
- 3mo ago John DiLullo appointed Chief Executive Officer, replacing Jennifer Tejada who transitions to Executive Chair
- 8mo ago PagerDuty achieves AWS Resilience Competency designation and continues strategic collaboration
- 10mo ago PagerDuty launches industry's first end-to-end AI agent suite for autonomous incident response and operations
Key Information
- Industry
- MGMT/Monitoring
- Founded
- 2009
- Employees
- 1262
- Country
- United States
Frequently Asked Questions
What is PagerDuty?
PagerDuty is a SaaS platform for incident management and operations automation, founded in 2009 by three former Amazon engineers. It helps large enterprises manage incident response and on-call operations using artificial intelligence to automate alert triage and incident resolution workflows across their technology infrastructure.
What does PagerDuty do?
PagerDuty manages incident response workflows by reducing alert noise through AIOps, automating triage decisions, and optimizing on-call scheduling. The platform helps enterprises minimize downtime by processing alerts intelligently and routing incidents to the right team members automatically, reducing operational friction in mission-critical systems.
How does PagerDuty use artificial intelligence?
In 2025, PagerDuty introduced autonomous Site Reliability Engineer agents and operational insights agents to its Operations Cloud platform. These AI-powered agents handle memory-enabled triage, streamline incident workflows, and optimize scheduling. The company partnered with Anthropic and LangChain to expand its AI agent capabilities and automate complex operational processes.
Who are PagerDuty's customers?
PagerDuty serves over 30,000 organizations globally, including enterprise SaaS firms like Zoom, Twilio, and Cloudflare; financial services companies including the New York Stock Exchange and Checkout.com; and logistics providers such as Ryanair and TUI. The platform also supports retailers, e-commerce platforms, and mission-critical public-sector operations with high availability requirements.
What is PagerDuty's market position?
PagerDuty commands the largest installed base in incident management with 30,000 organizations and deep relationships across enterprises. The company achieved fourth consecutive quarter of GAAP profitability in Q1 fiscal 2027 with $496 million in annual recurring revenue, demonstrating proven ROI of 249 percent for Operations Cloud customers.
Is PagerDuty's revenue growing?
PagerDuty's growth has stalled significantly, declining from 7 percent year-over-year in early 2025 to zero percent by Q1 fiscal 2027. The slowdown reflects customer caution, longer sales cycles in the mid-market, and competitive pressure from Datadog and New Relic, which offer integrated observability platforms that commoditize incident management functions.
How PagerDuty compares
Direct head-to-head against 3 competitors. Picked by 7wData.
PagerDuty
- Positioning
- PagerDuty manages incident response and on-call operations for large enterprises, using AI to automate alert triage and incident resolution workflows.
- Customer segments
- Enterprise SaaS and cloud infrastructure firms (Zoom, Twilio, Cloudflare, AWS)
- Strengths
- Largest installed base in incident management: 30,000+ organizations, with deep enterprise relationships and proven ROI (74% less downtime, 249% ROI on Operations Cloud)
- Watch for
- ARR growth stalled to 0% by Q1 FY2027 after declining from 7% YoY in early 2025—slowdown reflects customer caution and longer sales cycles, particularly in mid-market
- Recent moves
- PagerDuty announces Q1 FY2027 financial results and expands AI integration ecosystem with partnerships with Anthropic, Cursor, and LangChain
Atlassian Jira Service Management
- Positioning
- Unified ITSM platform for IT, dev, and business teams inside the Atlassian ecosystem.
- Customer segments
- Mid-market and enterprise tech companies already using Confluence, Jira, or Bitbucket.
- Strengths
- Native Jira integration lets engineering and support share one ticket backlog without data duplication.
- Watch for
- OpsGenie forced migration doubles per-user cost and splits on-call features across two products.
- Recent moves
- March 2026: Atlassian laid off approximately 10% of workforce to redirect investment toward AI and enterprise sales.
Datadog
- Positioning
- Cloud-native observability platform expanding into on-call and incident management for engineering teams.
- Customer segments
- Mid-market to enterprise DevOps and SRE teams already running Datadog for monitoring or APM.
- Strengths
- Alerts arrive pre-loaded with correlated traces, logs, and metrics, eliminating manual context gathering during incidents.
- Watch for
- Usage-based billing causes unpredictable cost spikes, customers cite bill shock as a recurring complaint.
- Recent moves
- January 2025: Datadog On-Call reached general availability, launched as a direct PagerDuty replacement at $40 per seat per month.
ServiceNow
- Positioning
- Enterprise workflow platform for large organizations needing ITSM, CMDB, change management, and ITIL compliance in one system of record.
- Customer segments
- Fortune 500 IT operations, security ops, and HR service delivery teams. Primary buyer is CIO or CISO at 1,000-plus employee organizations.
- Strengths
- Single system of record spanning ITSM, CMDB, and change management reduces compliance audit overhead for regulated enterprises.
- Watch for
- Steep implementation complexity requires dedicated skilled staff, support quality described as declining in recent customer reviews.
- Recent moves
- April 2026: Closed acquisition of Armis for asset discovery and cyber exposure management, extending ITOM scope to physical and IoT assets.
Sources
- www.pagerduty.com — Company mission, products, customer base (30,000+ organizations), integrations, and platform capabilities
- www.crunchbase.com — Funding history totaling $173.8M pre-IPO, Series rounds, and investor details
- en.wikipedia.org — Founding date (2009), founders (Alex Solomon, Andrew Miklas, Baskar Puvanathasan), Y Combinator participation, employee count (1,242), headquarters (San Francisco), and current revenue ($467M)
- www.pagerduty.com — 2025 product launches, AI agent announcements, AWS partnership, leadership appointments, and earnings announcements
- investor.pagerduty.com — Q1 FY2027 financial results, ARR ($496M), revenue ($121M), GAAP profitability, and forward guidance
- www.businesswire.com — CEO appointment of John DiLullo effective May 11, 2026, Jennifer Tejada transition to Executive Chair, and his background (25+ years enterprise software, former CEO of Deepwatch)
- www.pagerduty.com — Named customer logos and case studies including Zoom, Twilio, Cloudflare, SAP, NYSE, Ryanair, and non-profit customers
- www.pagerduty.com — January 2023 layoff of 7% of workforce (66 employees), reasons (macro uncertainty and conversion delays), severance details, and cost-cutting measures
- www.glassdoor.com — Employee satisfaction (3.6/5 stars, 63% recommend), work-life balance (3.9/5), culture ratings, and recent concerns about layoffs and AI replacing human roles
- www.cnbc.com — CEO Jennifer Tejada's apology for MLK quote in January 2023 layoff announcement and public backlash