# PagerDuty Q3 Earnings: Beat on EPS, Miss on Revenue

PagerDuty just dropped Q3 numbers that left analysts puzzled—earnings popped to $0.33/share (consensus was $0.24), a juicy +37.5% beat. Year-over-year also up from $0.25. So far so good, right?

But here's the catch: revenues came in at $124.55M, missing the $124.95M estimate by 0.32%. Compared to last year's $118.95M, still growing, just not as much as Wall Street wanted.

The real question: can the company sustain this momentum? That EPS beat looks solid on paper, but revenue misses hint at margin plays rather than organic growth. With PD down 18.6% YTD while S&P 500 is up 14%, the stock's been a drag.

Looking ahead, expectations are modest—$0.23 EPS next quarter on $127.23M revenue. For full fiscal year, $1.02 EPS on $495.59M revenue. The stock's sitting at Zacks Rank #3 (Hold), meaning expect market-in-line performance for now.

Worth watching: how management guides forward and whether the Internet-Software sector (currently in top 31% of industries) keeps its momentum. If you're considering jumping in, wait for clearer signals on revenue trajectory.