Maham Fatima
1 min read
In This Article:
PagerDuty Inc. (NYSE:PD) is one of the best small cap tech stocks with biggest upside potential. Earlier on June 2, Canaccord lowered its price target for PagerDuty from $23 to $21, while maintaining a Buy rating on the shares. The revision followed PagerDuty’s Q1 2025 performance, which exceeded guidance.
The company reported revenue of $119.8 million. While this number fell short of the initial expectations, it was still an 8% increase year-over-year, due to effective cost management. The company achieved its third consecutive year of non-GAAP profitability in Q1 and recorded 9% annual growth in both revenue and ARR. Canaccord now expects a notable increase in PagerDuty’s growth by 2026.
A closeup of a software engineer working in their office, overlooking a city skyline.
Enterprise engagement at PagerDuty improved through a shift towards multi-year and multi-product platform partnerships. Multi-product customers now contribute 65% to the company’s total ARR. The introduction of new AI capabilities and a streamlined packaging structure is also expected to improve operations, although the company faces near-term growth pressure as it moves to an enterprise-focused, top-down value selling approach.
PagerDuty Inc. (NYSE:PD) operates a digital operations management platform internationally.
While we acknowledge the potential of PD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
