PagerDuty reported a solid QQ2 FY2025 with revenue of approximately $116 million, up about 8% year over year, and delivered an above-range non-GAAP operating margin of 17% per management commentary. The company continues to execute its enterprise-first strategy, expanding multi-product, multi-year ARR and achieving a dollar-based net retention (DBNR) of about 106% in Q2, with ARR exiting at $474 million (+10% YoY). The quarter showcased meaningful enterprise-market momentum: new products (AIOps, automation, CSOps) contributed roughly 65% of net new ARR, and the mix shift toward large, strategic contracts has driven higher average deal sizes and improved retention economics, even as SMB there remains a headwind. Management signaled ARR growth above 10% for FY2025 and guided Q3 revenue of $115.5–$117.5 million and full-year revenue of $463–$467 million, with expected operating margins of roughly 13% in Q3 and ~14% for the full year. The firm also highlighted operational resilience during the July outage, accelerated GenAI initiatives (PagerDuty Advance), regulatory demand drivers (e.g., DORA), and a strengthening services-attached dynamic that supports longer-term profitability and free cash flow generation. The balance sheet remains robust, with substantial liquidity and a disciplined capital allocation strategy, including a quarterly buyback and ongoing investment in product and GTM capabilities. Investors should weigh the favorable ARR trajectory and enterprise-proofed product stack against SMB headwinds and longer sales cycles as near-term risks. overall, PD is transitioning toward a higher-visibility, enterprise-centric growth trajectory supported by AI-enabled workflows and a scalable operations cloud.