PagerDuty is expected to report second-quarter fiscal 2027 results on Monday that exceed Wall Street consensus estimates, as enterprises expand spending on AI-driven incident-response and operations automation. Analysts polled by Visible Alpha have forecast revenue near $126 million.

The company has pushed its AIOps and Operations Cloud products as customers seek to reduce downtime across increasingly complex digital infrastructure. Chief executive Jennifer Tejada has repeatedly tied growth to enterprise adoption of generative AI, which raises the operational stakes of any outage.

Wall Street will focus on annual recurring revenue, net dollar retention and the pace of large-customer additions—metrics that had softened in prior quarters amid tighter software budgets. Analysts at Morgan Stanley and RBC Capital Markets have flagged margin expansion and free cash flow as key signals of a durable turnaround.

A beat and raised guidance would reinforce the broader theme dominating this earnings season: corporate spending is concentrating on AI-adjacent software that promises measurable cost savings. Investors have rewarded such names while punishing legacy vendors lacking a clear AI narrative.

Tejada previewed the demand backdrop on the company's most recent earnings call, saying: "Every enterprise moving critical workloads to AI needs resilient operations, and that is exactly where our platform sits."