09:35 AM EDT, 03/14/2025 (MT Newswires) -- PagerDuty ( PD ) is seen to be on a path to boost annual recurring revenue growth in fiscal 2026 thanks to various key drivers including digitization trends, hybrid work and transitions to the cloud, RBC analysts said in a Friday note.

The cloud computing company reported late Thursday fiscal Q4 results, which the analysts labeled as "relatively good," and the Q1 and fiscal 2016 outlook as "prudent."

PagerDuty's ( PD ) management is confident regarding operations around H2, mainly due to GTM changes, enterprise groups that are "growing faster than average", fewer headwinds from very small businesses and small-to-medium sized businesses, and recent pricing and packaging changes, the analysts said.

RBC lowered PagerDuty's ( PD ) price target to $22 from $24 while maintaining an outperform rating on the stock.