v3.26.1
Net Income per Share
 6 Months Ended
Jul. 31, 2026
Earnings Per Share [Abstract]  
Net Income per Share Net Income per Share
Net income used for the purpose of determining basic and diluted net income per share is determined by taking net income attributable to PagerDuty, Inc., less the redeemable non-controlling interests redemption value adjustment.
The following table presents the calculation of basic and diluted net income attributable to PagerDuty, Inc. common stockholders for the periods indicated (in thousands, except number of shares and per share data):

Three months ended July 31,Six months ended July 31,
2026202520262025
Numerator:
Net income attributable to PagerDuty, Inc.$7,785 $9,575 $13,068 $2,413 
Less: Adjustment attributable to redeemable non-controlling interest3,059 (202)(1,904)(867)
Net income attributable to PagerDuty, Inc. common stockholders$4,726 $9,777 $14,972 $3,280 
Denominator:
Weighted average shares used in calculating net income per share
Basic77,334 92,600 77,980 91,997 
Weighted average effect of potentially dilutive securities:
Stock options, RSUs, PSUs, and ESPP obligations1,807 1,598 1,314 1,898 
Diluted79,141 94,198 79,294 93,895 
Net income per share attributable to PagerDuty, Inc. common stockholders
Basic$0.06 $0.11 $0.19 $0.04 
Diluted$0.06 $0.10 $0.19 $0.03 

Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands):

Three months ended July 31,Six months ended July 31,
2026202520262025
Shares subject to outstanding common stock awards
6,217 9,052 7,164 7,850 
Shares issuable pursuant to the ESPP
1,603 317 1,773 226 
Total7,820 9,369 8,937 8,076 

As described in Note 9. Debt and Financing Arrangements, upon conversion of the 2028 Notes, the Company will pay cash up to the aggregate principal amount of the 2028 Notes to be converted and pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election, in respect to the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the 2028 Notes being converted. As of July 31, 2026 and 2025, the conversion options of the 2028 Notes were out of the money and as a result, there were no potentially dilutive shares related to the conversion of the 2028 Notes.