PagerDutyPD -2.99%52 Gross Margin % is 84.28% as of Apr. 2026, which is 0% above its 10-year median of 84.03. GuruFocus rates PD with a GF Score™ of 52/100 and a GF Value™ of $21.36 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,683 Software companies, PagerDuty ranks better than 92.25% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. PagerDuty's Gross Profit for the
three
months ended in Apr. 2026 was $101.9 Mil. PagerDuty's Revenue for the
three
months ended in Apr. 2026 was $121.0 Mil. Therefore, PagerDuty's Gross Margin % for the quarter that ended in Apr. 2026 was 84.28%.
The historical rank and industry rank for PagerDuty's Gross Margin % or its related term are showing as below:
PD'
s Gross Margin % Range Over the Past 10 Years
Min: 81 Med: 84.03 Max: 85.63
Current: 85.02
During the past 9 years, the highestGross Margin % of PagerDuty was 85.63%. The lowest was 81.00%. And the median was 84.03%.
PD's Gross Margin % is ranked better than 92.25% of 2683
companies
in the Software industry
Industry Median: 40.45
vs PD: 85.02
PagerDuty had a gross margin of 84.28% for the quarter that ended in Apr. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for PagerDuty was -0.10% per year.
PagerDuty (NYSE:PD) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
PagerDuty had a gross margin of 84.28% for the quarter that ended in Apr. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
PagerDuty Gross Margin % Related Terms
PagerDuty Gross Margin % Historical Data
* Premium members only.
The historical data trend for PagerDuty's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, PagerDuty's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
PagerDuty Gross Margin % vs Software Industry
For the Software industry and Technology sector, PagerDuty's Gross Margin % distribution charts can be found below:
* The bar in red indicates where PagerDuty's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
PagerDuty (PD) has a Gross Margin % of 84.28% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on PagerDuty and its competitors. This is near median its historical median of 84.03. Over the past decade, PagerDuty's Gross Margin % has ranged from 81.00 to 85.63. According to the industry distribution chart, PagerDuty ranks #208 out of 2683 companies in the Software industry, placing it in the top 7.8%.
Is PagerDuty's Gross Margin % too high?
PagerDuty's current Gross Margin % of 84.28% is near median its 10-year median of 84.03. Over the past 10 years, this metric has ranged from a low of 81.00 to a high of 85.63. The Software industry median Gross Margin % is 40.45. PagerDuty's value of 84.28% is 108.4% above this industry median. Based on the distribution chart, PagerDuty ranks #208 out of 2683 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, PagerDuty has a GF Score™ of 52/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does PagerDuty's Gross Margin % compare to MITK and IBTA?
According to the Software industry distribution chart, PagerDuty ranks #208 out of 2683 companies for Gross Margin %. This places PagerDuty in the top 8% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. PagerDuty's value of 84.28% is 108.4% above this benchmark. Historically, PagerDuty's own Gross Margin % has ranged from 81.00 to 85.63 over the past decade. While the company's 10-year median is 84.03 vs. the industry median of 40.45, PagerDuty has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,683 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PagerDuty's current Gross Margin % of 84.28% is 108.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on PagerDuty and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PagerDuty's current Gross Margin % is 84.28%, which is near median its own 10-year median of 84.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PagerDuty stock overvalued right now?
Based on GuruFocus' analysis, PagerDuty (PD) is currently considered Possible Value Trap. The stock's GF Value™ is $21.36, compared to a current price of $8.61 — trading 59.7% below its estimated fair value. The current Gross Margin % is 84.28%, which is near median its 10-year median of 84.03 and 108.4% above the Software industry median of 40.45. PagerDuty's overall GF Score™ is 52/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For PagerDuty (PD), the current Gross Margin % is 84.28% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is PagerDuty (PD) Overvalued in 2026?
Based on GuruFocus' analysis, PagerDuty stock appears to be undervalued.
The current stock price of $8.61 is trading 59.7% below its estimated GF Value™ of $21.36.
GuruFocus considers PagerDuty to be Possible Value Trap.
Key valuation signals for PD:
Gross Margin %: 84.28% (near median its 10-year median of 84.03)
GF Value™: $21.36 vs. price of $8.61 (59.7% below fair value)
Industry Position: 108.4% above the Software median (#208 of 2683)
No single metric tells the full story. See the PD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PagerDuty Inc is a digital operations management platform that manages urgent and mission-critical work for a modern, digital business. Its PagerDuty Operations Cloud combines artificial intelligence (AI) operations (AIOps), automation, customer service operations, and incident management with a generative AI assistant to create a flexible, resilient, and scalable platform to protect revenue and improve customer experience, improve operational efficiency, and mitigate the risk of operational failures. The company generates revenue predominantly from cloud-hosted software subscription fees and term-license software subscription fees. Geographically, the company derives a majority of its revenue from the United States and the rest from International markets.
52GF Score
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