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Bank of Hawaii Corp (NYSE:BOH) on Monday posted weaker-than-expected results for the first quarter.

The company reported quarterly earnings of $1.30 per share which missed the analyst consensus estimate of $1.33 per share. The company reported quarterly sales of $192.322 million which missed the analyst consensus estimate of $193.524 million.

Bank of Hawaii shares closed at $80.06 on Monday.

These analysts made changes to their price targets on Bank of Hawaii following earnings announcement.

Keefe, Bruyette & Woods analyst Kelly Motta maintained Bank of Hawaii with an Outperform rating and raised the price target from $91 to $95. DA Davidson analyst Jeff Rulis maintained the stock with a Neutral and raised the price target from $77 to $82. Considering buying BOH stock? Here’s what analysts think:

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Posted by Defense World Staff on Apr 24th, 2026

Shares of Bank of Hawaii Corporation (NYSE:BOH – Get Free Report) have received an average recommendation of “Hold” from the seven brokerages that are covering the firm, Marketbeat.com reports. Four research analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average 12 month price objective among brokerages that have updated their coverage on the stock in the last year is $85.40.

BOH has been the subject of a number of research reports. Piper Sandler cut their target price on shares of Bank of Hawaii from $84.00 to $78.00 and set a “neutral” rating for the company in a research report on Thursday, April 2nd. Keefe, Bruyette & Woods increased their target price on shares of Bank of Hawaii from $91.00 to $95.00 and gave the stock an “outperform” rating in a research report on Tuesday. DA Davidson increased their target price on shares of Bank of Hawaii from $77.00 to $82.00 and gave the stock a “neutral” rating in a research report on Tuesday. Wall Street Zen upgraded shares of Bank of Hawaii from a “sell” rating to a “hold” rating in a research report on Saturday, January 31st. Finally, Weiss Ratings upgraded shares of Bank of Hawaii from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, March 30th.

Check Out Our Latest Report on Bank of Hawaii

Hedge Funds Weigh In On Bank of Hawaii A number of large investors have recently modified their holdings of the company. Louisiana State Employees Retirement System bought a new position in shares of Bank of Hawaii in the first quarter valued at approximately $1,307,000. Hsbc Holdings PLC bought a new position in shares of Bank of Hawaii in the fourth quarter valued at approximately $6,164,000. Corient Private Wealth LLC boosted its position in shares of Bank of Hawaii by 10.2% in the fourth quarter. Corient Private Wealth LLC now owns 33,157 shares of the bank’s stock valued at $2,269,000 after acquiring an additional 3,061 shares during the period. SHP Wealth Management bought a new position in shares of Bank of Hawaii in the fourth quarter valued at approximately $34,000. Finally, Mercer Global Advisors Inc. ADV boosted its position in shares of Bank of Hawaii by 36.4% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 8,409 shares of the bank’s stock valued at $575,000 after acquiring an additional 2,243 shares during the period. 82.18% of the stock is currently owned by institutional investors.

Bank of Hawaii Price Performance Shares of NYSE:BOH opened at $78.00 on Tuesday. The company has a quick ratio of 0.70, a current ratio of 0.69 and a debt-to-equity ratio of 0.37. The firm has a market capitalization of $3.10 billion, a PE ratio of 15.76, a P/E/G ratio of 0.73 and a beta of 0.72. Bank of Hawaii has a twelve month low of $59.36 and a twelve month high of $82.74. The company has a 50-day moving average price of $76.20 and a two-hundred day moving average price of $71.11.

Bank of Hawaii (NYSE:BOH – Get Free Report) last issued its earnings results on Monday, April 20th. The bank reported $1.30 earnings per share for the quarter, missing analysts’ consensus estimates of $1.33 by ($0.03). The business had revenue of $192.32 million for the quarter, compared to the consensus estimate of $193.53 million. Bank of Hawaii had a return on equity of 14.97% and a net margin of 20.46%.During the same quarter in the prior year, the business earned $0.97 EPS. Equities analysts forecast that Bank of Hawaii will post 5.86 EPS for the current year.

Bank of Hawaii Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Friday, June 12th. Shareholders of record on Friday, May 29th will be given a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a yield of 3.6%. The ex-dividend date is Friday, May 29th. Bank of Hawaii’s dividend payout ratio (DPR) is currently 56.57%.

Bank of Hawaii Company Profile (Get Free Report)

Bank of Hawaii (NYSE: BOH) is a regional commercial bank headquartered in Honolulu, Hawaii, with roots tracing back to its founding in 1897 by Charles Montague Cooke and Peter Cushman Jones. As one of the oldest financial institutions in the U.S. West Coast region, the bank has built a reputation for stability and community focus. It operates as the principal subsidiary of Bank of Hawaii Corporation, a publicly traded company on the New York Stock Exchange.

The bank offers a comprehensive suite of personal and business banking products and services.

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Bank of Hawaii delivered robust Q1 results, with net interest income up 20% and loan loss provisions down over 40%. I see the Series A preferred shares, BOH.PR.A, as attractive, yielding nearly 6.8% due to a market discount. I am shifting to a 'hold' on BOH common stock, citing a valuation above 2x book and 3.6x tangible book value.

Analysts on Wall Street project that Associated Banc-Corp (ASB - Free Report) will announce quarterly earnings of $0.69 per share in its forthcoming report, representing an increase of 17% year over year. Revenues are projected to reach $385 million, increasing 10.3% from the same quarter last year.

The consensus EPS estimate for the quarter has been revised 0.7% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

With that in mind, let's delve into the average projections of some Associated Banc-Corp metrics that are commonly tracked and projected by analysts on Wall Street.

The consensus among analysts is that 'Average Balance - Total earning assets and related interest income' will reach $41.21 billion. Compared to the current estimate, the company reported $39.28 billion in the same quarter of the previous year.

Analysts forecast 'Total nonperforming assets' to reach $129.76 million. Compared to the present estimate, the company reported $158.97 million in the same quarter last year.

Based on the collective assessment of analysts, 'Nonaccrual loans' should arrive at $103.38 million. The estimate compares to the year-ago value of $134.81 million.

Analysts' assessment points toward 'Adjusted efficiency ratio' reaching 55.6%. The estimate compares to the year-ago value of 58.6%.

According to the collective judgment of analysts, 'Net Interest Income (FTE)' should come in at $311.37 million. The estimate is in contrast to the year-ago figure of $290.20 million.

The combined assessment of analysts suggests that 'Bank and corporate owned life insurance' will likely reach $4.41 million. Compared to the present estimate, the company reported $5.20 million in the same quarter last year.

Analysts expect 'Capital markets, net' to come in at $6.82 million. The estimate is in contrast to the year-ago figure of $4.35 million.

The consensus estimate for 'Mortgage banking, net' stands at $3.16 million. Compared to the present estimate, the company reported $3.82 million in the same quarter last year.

The collective assessment of analysts points to an estimated 'Card-based fees' of $12.04 million. Compared to the current estimate, the company reported $10.44 million in the same quarter of the previous year.

It is projected by analysts that the 'Service charges and deposit accounts fees' will reach $13.67 million. The estimate compares to the year-ago value of $12.81 million.

Analysts predict that the 'Wealth management fees' will reach $25.14 million. Compared to the present estimate, the company reported $22.50 million in the same quarter last year.

The average prediction of analysts places 'Total Noninterest Income' at $73.30 million. Compared to the present estimate, the company reported $58.78 million in the same quarter last year.

View all Key Company Metrics for Associated Banc-Corp here>>>

Over the past month, Associated Banc-Corp shares have recorded returns of +11.7% versus the Zacks S&P 500 composite's +8.6% change. Based on its Zacks Rank #3 (Hold), ASB will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Associated Banc-Corp (ASB - Free Report) came out with quarterly earnings of $0.7 per share, beating the Zacks Consensus Estimate of $0.69 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +1.45%. A quarter ago, it was expected that this bank holding company would post earnings of $0.69 per share when it actually produced earnings of $0.8, delivering a surprise of +15.94%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Associated Banc-Corp, which belongs to the Zacks Banks - Midwest industry, posted revenues of $387.19 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.57%. This compares to year-ago revenues of $348.97 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Associated Banc-Corp shares have added about 8.1% since the beginning of the year versus the S&P 500's gain of 4.3%.

What's Next for Associated Banc-Corp?While Associated Banc-Corp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Associated Banc-Corp was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.71 on $437.2 million in revenues for the coming quarter and $2.85 on $1.73 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Midwest is currently in the top 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, FirstSun Capital (FSUN - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on April 27.

This company is expected to post quarterly earnings of $0.90 per share in its upcoming report, which represents a year-over-year change of +8.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

FirstSun Capital's revenues are expected to be $108.95 million, up 11.9% from the year-ago quarter.

Associated Banc-Corp (ASB) Q1 2026 Earnings Call Transcript

, /PRNewswire/ -- Associated Banc-Corp (NYSE: ASB) ("Associated") today announced the results of the actions taken at its 2026 Annual Meeting of Shareholders.

Annual Meeting Results

The following directors were elected:

John (Jay) B. Williams, chairman, Associated Banc-Corp, and chairman, Church Mutual Insurance Company Owen J. Sullivan, vice chairman, Associated Banc-Corp, and former president and chief operating officer of the former NCR Corporation Andrew J. Harmening, president and chief executive officer, Associated Banc-Corp Judith P. Greffin, former chief investment officer, Allstate Corporation Michael J. Haddad, chair of the board of directors, Schreiber Foods, Inc. Rodney Jones-Tyson, global chief human resources officer, Baird Financial Group Eileen A. Kamerick, adjunct professor of law and consultant Wende L. Kotouc, former executive co-chairperson and chief executive officer of American National Bank and executive vice president of American National Kristen M. Ludgate, former strategic advisor and former Chief People Officer at HP Inc. Cory L. Nettles, founder and managing director, Generation Growth Capital, Inc. Karen T. van Lith, founder and CEO of APEL Worldwide, LLC Shareholders also (1) approved named executive officer compensation, and (2) ratified the selection of KPMG LLP as Associated's independent accounting firm for 2026.

The Board of Directors recognized R. Jay Gerken, Robert A. Jeffe, and Gale E. Klappa as they retired from the Board. "We are deeply grateful to Jay Gerken, Bob Jeffe and Gale Klappa for their many years of service and leadership," said John (Jay) B. Williams, Chairman of the Board. "In recognition of their contributions, the Company has made a $25,000 charitable donation in each director's honor to the charity of their choice. We thank them for their dedication and wish them the very best."

Dividends Declared

The Associated Board of Directors declared a regular quarterly cash dividend of $0.24 per common share, payable on June 15, 2026, to shareholders of record at the close of business on June 1, 2026.

The Board of Directors also declared a regular quarterly cash dividend of $0.3671875 per depositary share on Associated's 5.875% Series E Perpetual Preferred Stock, payable on June 15, 2026, to shareholders of record at the close of business on June 1, 2026.

The Board of Directors also declared a regular quarterly cash dividend of $0.3515625 per depositary share on Associated's 5.625% Series F Perpetual Preferred Stock, payable on June 15, 2026, to shareholders of record at the close of business on June 1, 2026.

Stock Repurchase Program

In addition, the Board authorized the repurchase of up to $100 million of Associated's common stock. This repurchase authorization is in addition to the authority remaining under the previous program. With this repurchase authorization, the total authorization to repurchase common stock is $214 million as of April 28, 2026. Repurchases under such programs are subject to regulatory limitations and may occur from time to time in open market purchases, block transactions, accelerated share repurchase programs or similar facilities.

Technology Committee Established

The Board of Directors also established a Technology Committee of the Board. The Technology Committee will oversee Associated's data management, information technology, information security, vendor management, and measures taken by Associated to assess and mitigate risks in such areas.

ABOUT ASSOCIATED BANC-CORP

Associated Banc-Corp (NYSE: ASB) has total assets of approximately $50 billion and is the largest bank holding company based in Wisconsin. Headquartered in Green Bay, Wisconsin, Associated is a leading Midwest banking franchise, offering a full range of financial products and services from over 200 banking locations throughout Wisconsin, Illinois, Iowa, Minnesota, Missouri and Nebraska. The Company also operates loan production offices in Indiana, Kansas, Michigan, New York, Ohio and Texas. Associated Bank, N.A. is an Equal Housing Lender, Equal Opportunity Lender and Member FDIC. More information about Associated Banc-Corp is available at www.associatedbank.com.

FORWARD-LOOKING STATEMENTS

Statements made in this presentation which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding management's plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Such forward-looking statements may be identified by the use of words such as "believe," "expect," "anticipate," "plan," "estimate," "should," "intend," "target," "outlook," "project," "guidance," "forecast," or similar expressions. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements. Factors which may cause actual results to differ materially from those contained in such forward-looking statements include the ability to complete the proposed transaction involving Associated Banc-Corp ("Associated") and American National Bank ("American National") and to integrate the two businesses successfully and in a timely manner, if at all; the possibility that the anticipated benefits of the transaction are not realized when expected or at all; and such other risk factors as identified in the Company's most recent Form 10-K and subsequent Form 10-Qs and other SEC filings, and such factors are incorporated herein by reference.

Investor Contact:
Ben McCarville, Senior Vice President, Director of Investor Relations
920-491-7059

Media Contact:
Andrea Kozek, Vice President, Public Relations Senior Manager
920-491-7518

SOURCE Associated Banc-Corp

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Headquartered in Green Bay, Associated Banc-Corp (ASB - Free Report) is a Finance stock that has seen a price change of 9.39% so far this year. The bank holding company is currently shelling out a dividend of $0.24 per share, with a dividend yield of 3.41%. This compares to the Banks - Midwest industry's yield of 2.71% and the S&P 500's yield of 1.39%.

Looking at dividend growth, the company's current annualized dividend of $0.96 is up 3.2% from last year. Over the last 5 years, Associated Banc-Corp has increased its dividend 4 times on a year-over-year basis for an average annual increase of 5.59%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Associated Banc-Corp's current payout ratio is 33%, meaning it paid out 33% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for ASB for this fiscal year. The Zacks Consensus Estimate for 2026 is $2.89 per share, with earnings expected to increase 4.33% from the year ago period.

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.

High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, ASB is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

Brandon White joins bank as senior vice president, Dallas market leader; move builds on proven Kansas City model as bank extends national commercial reach

, /PRNewswire/ -- Associated Banc-Corp (NYSE: ASB) ("Associated" or "Company") today announced it is significantly growing its commercial banking capabilities and expanding into the Dallas market, adding a dedicated Corporate and Commercial Banking team to complement its established Commercial Real Estate (CRE) business in the market. The expansion includes new leadership, additional relationship manager hiring and the buildout of enhanced deposit and treasury management solutions for commercial clients in Texas.

Brandon White, senior vice president, Dallas market leader, Corporate and Commercial Banking at Associated Bank. The move follows the success of Associated's Kansas City, Missouri, commercial team, which launched in March 2025 as the bank's first market entered without a traditional branch network. Within its first year, the Kansas City team doubled in size from three to six bankers and exceeded growth expectations, validating the bank's approach of pairing experienced local talent with the full resources of a $50 billion institution. Dallas represents the next step in that proven playbook as a key growth market.

Brandon White, senior vice president, Dallas market leader, Corporate and Commercial Banking, has been hired to lead the initiative. In his role, White will oversee the buildout of a dedicated Commercial team, with relationship manager (RM) hiring underway. The bank expects to add approximately four positions across its Texas offices in 2026.

"Dallas represents a significant opportunity for Associated Bank as we continue to expand our commercial banking footprint in high-growth markets beyond the Midwest," said Phillip Trier, executive vice president, head of Corporate & Commercial Banking. "Bringing on Brandon to lead our Commercial efforts allows us to build on the success of Associated's CRE momentum and deliver a more comprehensive suite of solutions to our clients."

Prior to joining Associated, White was with Comerica Bank for more than 16 years, most recently leading a team of RMs focused on developing opportunities with corporate banking clients and sport franchises. He will report into Matt Flynn, senior vice president, business segment and region leader. Based in Kansas City, Mo., Flynn oversees Associated's expansion into Kansas City, Mo., Kansas, Oklahoma and Texas as well as leads Associated Bank's national Short Line Rail Industry vertical.

To support this growth and new team, Associated is doubling the size of its Preston Center office at 5950 Sherry Lane in Dallas to nearly 6,000 square feet, with construction underway and expected to be complete in August 2026.

Associated's Dallas office was established in 2015 to serve CRE clients, and expanded services into Houston in 2022. Associated's Texas offices serve clients across Dallas, Houston, Austin and San Antonio.

"This is an exciting opportunity to establish and grow Associated Bank's commercial banking presence in Dallas and across Texas," said White. "Dallas is a dynamic, high-growth market, and we are committed to building a strong, local team that understands the needs of businesses here. By combining relationship-driven banking with the full breadth of our capabilities, we look forward to delivering tailored financial solutions that help our clients succeed."

The expansion enables Associated to offer enhanced deposit and treasury management solutions to commercial clients in Texas, building on the bank's 2024 launch of its Specialty Deposit and Payment Solutions national vertical. Combined with the September 2025 addition of Eric Lien as director of Treasury Management, Associated's Dallas team will be positioned to deliver a comprehensive suite of lending, deposit, payment and treasury solutions alongside its established CRE lending platform.

Dallas is adding approximately 100,000 new jobs per year, outpacing most major U.S. markets. Combined with Kansas City's position as a central U.S. business hub, the two markets give Associated a commercial presence that spans from the Midwest through the Southern and Central corridors of the country.

The Dallas and Kansas City expansions follow a period of substantial commercial growth for Associated. Since 2020, Associated has grown its Commercial loan portfolio significantly, with 2025 representing a record year for its Commercial business. In recent years, the bank has added top talent in key leadership roles, expanded capabilities through several new industry verticals, and increased the number of RMs in key growth markets including the Twin Cities and Kansas City.

White has a bachelor's degree from Texas Tech University – Rawls College of Business and an MBA from Texas Christian University. He resides in Dallas.

ABOUT ASSOCIATED BANC-CORP
Associated Banc-Corp (NYSE: ASB) has total assets of approximately $50 billion and is the largest bank holding company based in Wisconsin. Headquartered in Green Bay, Wisconsin, Associated is a leading Midwest banking franchise, offering a full range of financial products and services from over 200 banking locations throughout Wisconsin, Illinois, Iowa, Minnesota, Missouri and Nebraska. The Company also operates loan production offices in Indiana, Kansas, Michigan, New York, Ohio and Texas. Associated Bank, N.A. is an Equal Housing Lender, Equal Opportunity Lender and Member FDIC. More information about Associated Banc-Corp is available at www.associatedbank.com.

Media Contact:
Andrea Kozek
VP/Senior Manager, PR
920-491-7518

SOURCE Associated Banc-Corp

Strategic hires strengthen wealth advisory, planning and investment capabilities across Minnesota

, /PRNewswire/ -- Associated Banc-Corp (NYSE: ASB) ("Associated" or "Company") today announced the continued expansion of its private wealth business in Minnesota with the addition of two experienced professionals to support growth in the Minneapolis market: Ken LaChance as senior private wealth advisory market leader – Minneapolis and Gracia Cavanaugh, CFP®, MS, as senior wealth planner for Minnesota.

LaChance will be based at the IDS Center in Minneapolis and report to Jayne Hladio, executive vice president and president of Associated Bank Private Wealth.

Ken LaChance, senior private wealth advisory market leader – Minneapolis at Associated Bank.

Gracia Cavanaugh, CFP®, MS, senior wealth planner for Minnesota at Associated Bank. The additions reflect Associated Bank's continued investment in Minneapolis as a key growth market for its private wealth business, building on the bank's broader expansion strategy across the Twin Cities and strengthening its ability to serve high-net-worth individuals, families and business owners with personalized advice and integrated banking capabilities.

In his role, LaChance will lead and coordinate local market efforts across Private Wealth to drive growth, deepen client relationships and enhance retention. He will work closely with wealth directors and partners across the bank to strengthen collaboration and deliver a seamless "One Associated" client experience, while helping expand the team's presence in Minnesota and supporting the integration of American National Bank clients.

"Minneapolis is an important growth market for our private wealth business, and we continue to invest in experienced talent who can deepen relationships and deliver the personalized guidance our clients expect," said Hladio. "Ken's leadership experience, market knowledge and collaborative approach will help accelerate our momentum in the Twin Cities while strengthening connectivity across our organization."

LaChance brings more than 30 years of financial services leadership experience spanning wealth management, commercial banking, growth strategy and team development. Most recently, he served as branch complex manager and executive director with Wells Fargo Advisors, where he led multi-office teams and drove business growth while maintaining strong operational and regulatory discipline. Earlier in his career, he held senior commercial banking leadership roles serving middle-market and corporate clients throughout Minnesota.

He earned a bachelor's degree from the University of Minnesota Duluth and holds FINRA Series 7, 9/10, 63 and 65 licenses.

Associated Bank also announced the addition of Cavanaugh as senior wealth planner for Minnesota. She will report to Michelle Slawny, senior vice president and wealth planning director, and will also be based at the IDS Center.

Cavanaugh brings more than 30 years of experience serving clients in the Twin Cities and California. Most recently, she served as region development manager at U.S. Bank, where she coached wealth teams and helped enhance client experience consistency through planning strategies, advisor development and relationship deepening initiatives. She also previously led advisory consulting efforts for MoneyGuidePro platform transitions and served as president of Cavanaugh Financial Group, advising clients on comprehensive financial planning strategies.

She earned a bachelor's degree from the University of St. Thomas and a master's degree in personal financial planning from The College for Financial Planning. She also holds FINRA Series 7, 24, 53 and 63 licenses.

These additions further strengthen Associated Bank's private wealth capabilities in Minnesota and complement the bank's recent appointment of Lisa Buetow to lead Major Metro Market Private Banking, reinforcing Associated's long-term commitment to growing its presence and serving clients across the Twin Cities market.

ABOUT ASSOCIATED BANC-CORP
Associated Banc-Corp (NYSE: ASB) has total assets of approximately $50 billion and is the largest bank holding company based in Wisconsin. Headquartered in Green Bay, Wisconsin, Associated is a leading Midwest banking franchise, offering a full range of financial products and services from over 200 banking locations throughout Wisconsin, Illinois, Iowa, Minnesota, Missouri and Nebraska. The Company also operates loan production offices in Indiana, Kansas, Michigan, New York, Ohio and Texas. Associated Bank, N.A. is an Equal Housing Lender, Equal Opportunity Lender and Member FDIC. More information about Associated Banc-Corp is available at www.associatedbank.com.

Media Contact:
Andrea Kozek
VP/Senior Manager, PR
920-491-7518

SOURCE Associated Banc-Corp

, /PRNewswire/ -- Associated Banc-Corp (NYSE: ASB) ("Associated") today announced it will once again serve as the title sponsor of Audaxity, returning for the second annual fundraising bicycle ride in 2026 after supporting the event's inaugural year.

Andy Harmening, president and chief executive officer of Associated Bank, at 2025 Audaxity Bike Ride. Audaxity brings together riders, cancer survivors, caregivers and community members to raise critical funds for cancer research at the Medical College of Wisconsin (MCW) Cancer Center. With 100% of funds raised staying local, the event plays a meaningful role in advancing research that is improving outcomes for adult, pediatric and rare cancer patients across the region and the country.

"Returning as the title sponsor of Audaxity reflects our deep commitment to the communities we serve and to advancing lifesaving research close to home," said Jayne Hladio, president of Associated Bank Private Wealth and Associated's internal Audaxity champion. "This ride is about more than miles, it's about impact. Every dollar raised stays here in our community, supporting researchers at the Medical College of Wisconsin Cancer Center whose work is making real progress for families facing cancer in Wisconsin and far beyond."

Audaxity hosted its first ride in August 2025, drawing 1,074 participants, including 112 cancer survivors, across 111 teams made up of local businesses, community groups and individuals. Together, they rode 12,796 miles and raised more than $1 million to support local cancer research efforts. The event's name combines "audacity," representing bold determination, and "audax," a long-distance cycling challenge, to capture the spirit of riders committed to pushing boundaries for a greater cause.

"This partnership enables us to move faster with cancer research, from discovery to delivery of new treatments for patients," said Dr. Gustavo Leone, director of the MCW Cancer Center and senior associate dean of cancer research. "Audaxity and Associated are not only helping fund critical research, but they are also rallying the community around a shared purpose. That combination of resources and collective commitment is what drives meaningful progress against cancer and brings hope to patients and their families."

This year's Audaxity bike ride will take place on Sunday, August 2 at American Family Field, offering five ride courses of varying lengths and difficulty, as well as a flexible virtual participation option to make it accessible for individuals of all abilities and locations. A "Rev Up" event will take place on Friday evening, creating an opportunity for participants and supporters to celebrate the mission and get energized for the ride ahead.

The continued partnership between Associated and the MCW Cancer Center underscores a shared commitment to accelerating cancer research while building a strong, supportive community around those impacted by the disease. Through Associated's sponsorship of Audaxity, the MCW Cancer Center is putting the funds directly to work by bringing together researchers and clinicians to tackle cancer's toughest challenges, training the next generation of scientists and expanding access to lifesaving discoveries so more families, both here in Wisconsin and beyond, can benefit.

To learn more, sign up to ride, or volunteer, visit audaxity.org.

ABOUT ASSOCIATED BANC-CORP
Associated Banc-Corp (NYSE: ASB) has total assets of approximately $50 billion and is the largest bank holding company based in Wisconsin. Headquartered in Green Bay, Wisconsin, Associated is a leading Midwest banking franchise, offering a full range of financial products and services from over 200 banking locations throughout Wisconsin, Illinois, Iowa, Minnesota, Missouri and Nebraska. The Company also operates loan production offices in Indiana, Kansas, Michigan, New York, Ohio and Texas. Associated Bank, N.A. is an Equal Housing Lender, Equal Opportunity Lender and Member FDIC. More information about Associated Banc-Corp is available at www.associatedbank.com

Media Contact:
Andrea Kozek
VP/Senior Manager, Public Relations
920-491-7518

SOURCE Associated Banc-Corp

Renewed agreement enhances benefits for bank customers at historic Milwaukee venues

, /PRNewswire/ -- Associated Bank and the Pabst Theater Group today announced a five-year extension of their partnership, providing special concert perks to bank customers and continuing Associated Bank's role as the "official bank" of the Pabst Theater Group.

To celebrate the extension of their current partnership, the Pabst Theater Group is holding a contest open to any music fans for two free tickets to Riverside Theater shows by Harry Connick Jr. on July 13 and Of Monsters and Men on Aug. 4 in the "Associated Bank VIP Green Row Seats" – the best seats in the house.

The “Associated Bank VIP Green Row Seats” at The Pabst and The Riverside Theaters. The "Associated Bank VIP Green Row Seats" are first-row seats in the center sections of the balconies at The Pabst and The Riverside Theaters, with the Associated Bank & Pabst Theater Group logo and customized green. Contests and promotions for bank customers and the general public often include free tickets to these coveted seats.

"The Associated Bank Green Row Seats are the perfect place to see a show," said Gary Witt, CEO of the Pabst Theater Group. "Watching a show from these seats is like seeing a giant flatscreen come to life."

Fans can go to the following link to enter the contest: https://www.pabsttheatergroup.com/deals/associated-bank

Under the agreement, Associated Bank customers who show their bank debit or credit card will enjoy a robust program of exclusive benefits designed to get more out of every performance at Pabst Theater Group venues, including Pabst Theater, Riverside Theater, Turner Hall Ballroom, Vivarium and The Fitzgerald. The latter two venues were added to the partnership with the new extension, which runs from 2026 through 2031.

A new perk for bank customers will be a 10% bar discount when presenting an Associated Bank debit card. Continuing benefits include:

10% Merchandise Discount: Valid for in-person Pabst Theater Group merchandise purchases. Does not include artist merchandise. Exclusive Ticket Offers: Pre-sale access and special offers for those who opt in as eMembers. Free Coat Check: Provided at the Pabst and Riverside Theaters for cardholders when available. Surprise Seat Upgrades: Randomly selected fans and ticket holders may be moved to the premium Associated Bank Green Row Seats at select shows. "As a proudly independent, local Milwaukee organization, the Pabst Theater Group is thrilled to extend our partnership with Associated Bank, a company that shares our deep Wisconsin roots," Witt said. "There is something incredibly powerful about two 'born in Wisconsin' brands coming together with a shared vision. We are immensely proud to collaborate with a partner that understands the importance of nurturing and growing the soul and identity of Milwaukee through the world-class performances we bring to our stages every night."

"At Associated Bank, we believe the money entrusted to us should help strengthen the communities we serve," said Bryan Carson, executive vice president and chief product and marketing officer, Associated Bank. "That is why we are proud to continue our relationship with the locally based Pabst Theater Group, whose iconic venues play such an important role in Milwaukee's culture, economy and entertainment scene. Supporting organizations that bring people together and create lasting impact is core to who we are as a bank. It's even better when we can pass along savings to our cardholders too with the 10% bar and merchandise discounts."

The partnership between Associated Bank and the Pabst Theater Group remains rooted in a shared commitment to the creative, cultural, entertainment and financial vibrancy of downtown Milwaukee. The Pabst Theater Group is Wisconsin's top independent music promoter, with six of the most iconic and historic venues in Milwaukee bringing the best in music and comedy to live entertainment fans. Associated Bank is similarly invested in Milwaukee as a major lender in the metro area and Wisconsin's fastest growing bank.

For more information on the partnership visit: https://www.associatedbank.com/ptg

Media can download corporate logos and photos of contest artists and Green Row Seats at: https://bit.ly/3PU9sb4

ABOUT ASSOCIATED BANC-CORP
Associated Banc-Corp (NYSE: ASB) has total assets of approximately $50 billion and is the largest bank holding company based in Wisconsin. Headquartered in Green Bay, Wisconsin, Associated is a leading Midwest banking franchise, offering a full range of financial products and services from over 200 banking locations throughout Wisconsin, Illinois, Iowa, Minnesota, Missouri and Nebraska. The Company also operates loan production offices in Indiana, Kansas, Michigan, New York, Ohio and Texas. Associated Bank, N.A. is an Equal Housing Lender, Equal Opportunity Lender and Member FDIC. More information about Associated Banc-Corp is available at www.associatedbank.com.

ABOUT PABST THEATER GROUP:
What began as an effort by Gary Witt and Matt Beringer to save the historic Pabst Theater has now evolved into the Pabst Theater Group. Now in its 24th year, the Pabst Theater Group has become an iconic Milwaukee brand that defines the city's soul and identity, helping to grow the city's night time economy of great restaurants, bars and coffee shops. Today, the group hosts 800 live events annually across six core venues—The Pabst Theater, Riverside Theater, Miller High Life Theatre, Turner Hall Ballroom, The Fitzgerald, and Vivarium—as well as various satellite locations. With a dedicated team of 350 staff members, the organization contributes over $250 million to Milwaukee's economy every year, proving that historic preservation and community building are powerful drivers of economic growth.

MEDIA CONTACTS:

Associated Bank, Andrea Kozek: 920/491-7518, [email protected] Pabst Theater Group, Jeff Bentoff: 414/791-1215, [email protected] SOURCE Associated Banc-Corp

Editor’s note: This article has been corrected. Steve Putman retained 761,417 shares in direct ownership after the transaction reported on.

Steve Putman, SVP, General Counsel, and Secretary of Black Stone Minerals, L.P. (BSM +0.33%), reported the sale of 30,276 common units for a transaction value of approximately $462,000 on March 5, 2026, according to a SEC Form 4 filing.

Transaction summaryMetricValueShares sold (direct)30,276Transaction value$461,585Amount of Securities Beneficially Owned Following Reported Transaction (direct) 761,417Transaction value based on SEC Form 4 reported price ($15.25).

Key questionsWhat was the market context at the time of sale?
On March 5, 2026, Black Stone Minerals, L.P. units closed at $15.44 (market open: $15.19), with a one-year total return of roughly 14% from market close March 5, 2025, to market close March 5, 2026. Company overviewMetricValueMarket capitalization$3.2 billionRevenue (TTM)$401 millionNet income (TTM)$300 million

Today's Change

(

0.33

%) $

0.04

Current Price

$

13.87

Company snapshot Black Stone Minerals, L.P. is one of the largest owners and managers of oil and natural gas mineral interests in the United States, generating revenue primarily from royalty payments across more than 20 million gross acres. It serves energy producers and exploration companies operating on its mineral acreage throughout 41 U.S. states.

Things to know before investingInvestors should be aware of the unique structure when investing in master limited partnerships (MLPs) like Black Stone Minerals. Investors become limited partners when purchasing and holding common units, which are economically similar to owning common shares of a corporation, though legally different.

Instead of dividends, MLPs pay cash distributions. These distributions are often higher than typical corporate dividends because MLPs generally avoid corporate-level taxation and pass income directly through to investors.

While the high-income potential is enticing, distributions can add complexity for retail investors. Instead of receiving Form 1099-DIV, investors typically receive a Schedule K-1, which may require additional steps when filing taxes. Consulting a tax professional may be beneficial for investors unfamiliar with partnership taxation.

Otherwise, current political tensions make Black Stone Minerals stock enticing, as global oil supply is at risk of decline and gas prices in the U.S. have soared, both of which would benefit the stock. But investors may want to proceed with caution, because price volatility can spike if tensions heighten.

Adé Hennis has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Posted by Defense World Staff on Apr 9th, 2026

Black Stone Minerals, L.P. (NYSE:BSM – Get Free Report) SVP Luke Stevens Putman sold 29,386 shares of the stock in a transaction dated Monday, April 6th. The shares were sold at an average price of $14.45, for a total transaction of $424,627.70. Following the transaction, the senior vice president owned 732,031 shares of the company’s stock, valued at approximately $10,577,847.95. The trade was a 3.86% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website.

Luke Stevens Putman also recently made the following trade(s):

On Thursday, March 5th, Luke Stevens Putman sold 30,276 shares of Black Stone Minerals stock. The stock was sold at an average price of $15.25, for a total transaction of $461,709.00. Black Stone Minerals Price Performance Shares of NYSE:BSM opened at $14.21 on Thursday. The company has a quick ratio of 3.88, a current ratio of 3.88 and a debt-to-equity ratio of 0.19. The firm has a market capitalization of $3.02 billion, a PE ratio of 11.10 and a beta of 0.19. Black Stone Minerals, L.P. has a twelve month low of $11.78 and a twelve month high of $15.49. The company has a 50-day moving average price of $15.05 and a two-hundred day moving average price of $14.12.

Black Stone Minerals (NYSE:BSM – Get Free Report) last issued its earnings results on Monday, February 23rd. The oil and gas producer reported $0.31 earnings per share for the quarter, topping analysts’ consensus estimates of $0.27 by $0.04. The firm had revenue of $118.70 million during the quarter, compared to analyst estimates of $98.08 million. Black Stone Minerals had a net margin of 62.26% and a return on equity of 43.31%. Equities analysts forecast that Black Stone Minerals, L.P. will post 1.36 EPS for the current year.

Black Stone Minerals Announces Dividend The firm also recently announced a quarterly dividend, which was paid on Wednesday, February 25th. Shareholders of record on Wednesday, February 18th were given a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 8.4%. The ex-dividend date was Wednesday, February 18th. Black Stone Minerals’s dividend payout ratio (DPR) is currently 93.75%.

Wall Street Analyst Weigh In A number of equities analysts have weighed in on the stock. Weiss Ratings reiterated a “hold (c-)” rating on shares of Black Stone Minerals in a research report on Monday, December 29th. Zacks Research lowered shares of Black Stone Minerals from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, February 4th. Finally, Piper Sandler raised their price objective on shares of Black Stone Minerals from $13.00 to $14.00 and gave the company a “neutral” rating in a research report on Thursday, March 5th. Four equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, Black Stone Minerals currently has an average rating of “Hold” and an average target price of $14.00.

Check Out Our Latest Analysis on BSM

More Black Stone Minerals News Here are the key news stories impacting Black Stone Minerals this week:

Positive Sentiment: Seeking Alpha published a bullish feature arguing BSM could benefit from rising data‑center energy demand and longer‑term electricity/fuel consumption tailwinds — supports a thematic, long‑term buyer case. Article Positive Sentiment: Fundamentals: BSM beat on its most recent quarter (EPS $0.31 vs. $0.27 est.; revenue $118.7M vs. $98.1M) and pays a generous quarterly dividend ($0.30 / $1.20 annualized, ~8.3% yield). Those items support income‑oriented demand for the shares. MarketBeat — BSM Neutral Sentiment: Insider sale: SVP Luke Stevens Putman sold 29,386 shares at an average $14.45 (~$424.6k) and still holds ~732k shares (~$10.6M). Given the large remaining stake, the trade reads more like liquidity taking than a director‑level vote of no confidence. SEC Form 4 Negative Sentiment: KeyCorp cut multiple EPS estimates across 2026–2027 (examples: FY2026 down from $1.20 to $0.87; FY2027 from $1.46 to $1.22; several quarterly trims), lowering near‑term earnings expectations — the primary negative catalyst likely weighing on the stock today. Research note summary Hedge Funds Weigh In On Black Stone Minerals A number of large investors have recently modified their holdings of BSM. Royal Bank of Canada boosted its position in shares of Black Stone Minerals by 7.0% in the first quarter. Royal Bank of Canada now owns 119,894 shares of the oil and gas producer’s stock valued at $1,831,000 after acquiring an additional 7,818 shares during the period. Invesco Ltd. raised its stake in Black Stone Minerals by 10.2% in the second quarter. Invesco Ltd. now owns 94,180 shares of the oil and gas producer’s stock valued at $1,232,000 after purchasing an additional 8,730 shares in the last quarter. Jump Financial LLC purchased a new stake in Black Stone Minerals in the second quarter valued at approximately $1,230,000. Fayez Sarofim & Co raised its stake in Black Stone Minerals by 5.0% in the second quarter. Fayez Sarofim & Co now owns 515,045 shares of the oil and gas producer’s stock valued at $6,737,000 after purchasing an additional 24,305 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Black Stone Minerals by 5.5% in the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 963,313 shares of the oil and gas producer’s stock valued at $12,600,000 after purchasing an additional 49,818 shares in the last quarter. 14.49% of the stock is currently owned by institutional investors.

About Black Stone Minerals (Get Free Report)

Black Stone Minerals L.P. (NYSE: BSM) is a publicly traded limited partnership that acquires and manages oil and natural gas mineral interests and producing royalty interests across the United States. The company’s business model centers on holding fractional ownership in subsurface mineral estates, which allows it to earn royalty income from hydrocarbon production without taking on the capital expenditures or operating risks associated with exploration and development.

Founded in 1876 and headquartered in Houston, Texas, Black Stone Minerals has built a diversified portfolio spanning key U.S.

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Black Stone is projected to generate $273 million in 2026 distributable cash flow at current strip. Hedges limit its ability to benefit from strong near-term oil prices. A $20 increase in the average 2026 oil price would only improve Black Stone's DCF by $3 million. Black Stone has close to 45% of its 2027 production hedged.

HOUSTON--(BUSINESS WIRE)--Black Stone Minerals, L.P. (NYSE: BSM) ("Black Stone Minerals," "Black Stone," or "the Partnership") today announces its financial and operating results for the first quarter of 2026.

Financial and Operational Highlights

Mineral and royalty production for the first quarter of 2026 equaled 35.9 MBoe/d, an increase of 16% from the prior quarter; total production, including working-interest volumes, was 37.0 MBoe/d for the quarter. Net income for the first quarter was $13.3 million, and Adjusted EBITDA for the quarter totaled $87.0 million. Distributable cash flow was $76.5 million for the first quarter. Black Stone announced a distribution of $0.30 per unit with respect to the first quarter of 2026. Distribution coverage for all units was 1.20x. Total debt at the end of the first quarter was $187.0 million; as of May 1, 2026, total debt was $164.0 million with approximately $10.0 million of cash on hand. Management Commentary

“During the first quarter, we continued to execute across our commercial initiatives, building on the momentum established in 2025,” said Fowler Carter, Co-CEO and President of Black Stone Minerals. “Since inception, we have deployed over $250 million through our mineral acquisition program to enhance our long-term development position in the expanding Haynesville and Bossier play. In the Shelby Trough, operators under our development agreements continue to progress activity across multiple programs. Throughout the broader portfolio we had another strong quarter of leasing activity and remain encouraged by continued high-interest development in the Permian. As activity continues to ramp up across our core areas, we remain focused on execution and positioning the portfolio for sustained production and cash flow growth over time.”

Taylor DeWalch, Co-CEO and President added “We delivered a strong first quarter, with production exceeding expectations. Production outperformance was driven primarily by increased natural gas activity in the Louisiana Haynesville and Shelby Trough and strong oil production in the Permian. Results reflected significant commodity price volatility, with natural gas realizations impacted by February regional pricing dislocations from Winter Storm Fern and oil pricing in March reflecting the onset of geopolitical uncertainty. While we are in the early innings of initiating development under multiple agreements in the Haynesville and Bossier expansion play, we remain on track for meaningful production growth through 2026 and beyond. The continued increase in activity across our core areas reinforces a constructive long-term outlook.”

Quarterly Financial and Operating Results

Production

Black Stone reported mineral and royalty volumes of 35.9 MBoe/d (77% natural gas) for the first quarter of 2026, compared to 30.9 MBoe/d for the fourth quarter of 2025 and 34.2 MBoe/d for the first quarter of 2025.

Working-interest production was 1.1 MBoe/d for the first quarter of 2026, 1.2 MBoe/d in the fourth quarter of 2025, and 1.3 MBoe/d for the first quarter of 2025.

Total reported production averaged 37.0 MBoe/d (97% mineral and royalty, 76% natural gas) for the first quarter of 2026, compared to 32.1 MBoe/d and 35.5 MBoe/d for the fourth quarter of 2025 and the first quarter of 2025, respectively.

Realized Prices, Revenues, and Net Income

The Partnership’s average realized price per Boe, excluding the effect of derivative settlements, was $35.30 for the first quarter of 2026. This is an increase of 15% from $30.63 per Boe in the fourth quarter of 2025 and a 4% increase from $33.94 in the first quarter of 2025.

Black Stone reported oil and gas revenue of $117.5 million (46% oil and condensate) for the first quarter of 2026, an increase of 30% from $90.5 million in the fourth quarter of 2025. Oil and gas revenue in the first quarter of 2025 was $108.3 million.

The Partnership reported a loss on commodity derivative instruments of $64.6 million for the first quarter of 2026, composed of a $12.2 million loss from realized settlements and a non-cash $52.3 million unrealized loss due to the change in value of Black Stone’s derivative positions during the quarter. Black Stone reported a gain of $23.5 million and a loss of $56.0 million on commodity derivative instruments for the fourth quarter of 2025 and the first quarter of 2025, respectively.

Lease bonus and other income was $6.4 million for the first quarter of 2026. Lease bonus and other income for the fourth quarter of 2025 and the first quarter of 2025 was $4.7 million and $6.9 million, respectively.

The Partnership reported net income of $13.3 million for the first quarter of 2026, compared to net income of $72.2 million in the preceding quarter. For the first quarter of 2025, the Partnership reported net income of $15.9 million.

Adjusted EBITDA and Distributable Cash Flow

Adjusted EBITDA for the first quarter of 2026 was $87.0 million, which compares to $76.7 million in the fourth quarter of 2025 and $87.0 million in the first quarter of 2025. Distributable cash flow for the first quarter of 2026 was $76.5 million. For the fourth quarter of 2025 and the first quarter of 2025, distributable cash flow was $66.8 million and $78.5 million, respectively.

Financial Position and Activities

As of March 31, 2026, Black Stone had $11.6 million in cash, with $187.0 million drawn under its credit facility. As of May 1, 2026, the Partnership had approximately $10.0 million in cash, with $164.0 million outstanding under the credit facility. Black Stone is in compliance with all financial covenants associated with its credit facility.

Subsequent to quarter-end, the borrowing base under the credit facility was reaffirmed at $580.0 million and the Partnership elected to maintain total commitments under the credit facility at $375.0 million. The Partnership's next regularly scheduled borrowing base redetermination is set for October 2026.

First Quarter 2026 Distributions

As previously announced, the Board approved a cash distribution of $0.30 for each common unit attributable to the first quarter of 2026, representing a distribution coverage ratio of approximately 1.20x. The distribution will be paid on May 15, 2026, to unitholders of record as of the close of business on May 8, 2026.

Activity Update

Development Activity

During the first quarter, Adamas Energy (formerly Aethon Energy) was operating three rigs on Black Stone's Angelina and San Augustine acreage in the Shelby Trough. Adamas’s development program remains on track, with 4 wells spud in the first quarter of 2026 as part of the current program year ending June 30, 2026, an additional 4 wells expected in the second quarter of 2026 to complete that program year, and 10 more wells expected in the second half of 2026 as part of the next program year. Adamas successfully turned to sales 7 gross (0.5 net) wells during the first quarter and expects to turn to sales 12 gross (1.2 net) wells during the remainder of 2026.

The Partnership's agreement with Revenant Energy covers 270,000 gross acres in which we currently control approximately 122,000 undeveloped net acres. Revenant is obligated to drill a minimum of 6 wells in 2026, increasing annually to a minimum of 25 wells per year by 2030. Black Stone also secured a non-operated working interest partner for the development. In November 2025, the agreement was amended to maintain the 6-well commitment for 2026 and convert future commitments to completed gross lateral-foot targets at one well per 7,000 lateral feet, allowing longer laterals while keeping overall development levels unchanged. Revenant spud 2 wells in the first quarter of 2026, one of which experienced a loss of well control incident in April 2026. Black Stone is currently assessing the potential impact of this incident on Revenant’s first year development program and related well commitments.

In November 2025, the Partnership entered into a 220,000 gross acre development agreement with Caturus Energy, which aims to push the Shelby Trough westward towards the Western Haynesville. Activity will begin with approximately 2 gross (0.2 net) wells in the second half of 2026 and ramp up to approximately 12 gross (0.8 net) wells annually by 2031, supported by minimum annual lateral-foot requirements, all net to our interest. In addition to the 2 gross wells in 2026, Caturus plans to drill a pilot well stepping out towards Houston County, consistent with the terms of the agreement.

In the Permian Basin, Coterra Energy continues to develop Black Stone acreage in Culberson County, Texas. During the first quarter, 17 gross wells (0.6 net) associated with this development were turned to sales. A separate development by another Permian operator of 25 gross (1.9 net) wells in the southern Delaware Basin is expected to come online in the second half of 2026 and first half of 2027.

Acquisition Activity

The Partnership continues to acquire bolt-on acreage in multiple contractual development programs with significant inventory at high net interests across San Augustine, Nacogdoches, Angelina, Cherokee, Houston, and Trinity counties.

In the first quarter of 2026, Black Stone acquired $11.5 million of additional (primarily non-producing) mineral and royalty interests. From September 2023 through the end of April 2026, the Partnership has completed $251.0 million of mineral and royalty acquisitions, primarily in the expanding Shelby Trough area. Black Stone’s commercial strategy going forward includes the continuation of meaningful, targeted mineral and royalty acquisitions to complement the Partnership's existing positions.

Hedge Position

Black Stone has commodity derivative contracts in place covering portions of its anticipated production for 2026, and 2027. The Partnership's hedge position as of May 1, 2026, is summarized in the following tables:

Oil Hedge Position

Oil Swap

Oil Swap Price

MBbl

$/Bbl

2Q26

615

$64.39

3Q26

615

$64.39

4Q26

615

$64.39

1Q27

420

$61.87

2Q27

420

$61.87

3Q27

420

$61.87

4Q27

420

$61.87

Natural Gas Hedge Position

Gas Swap

Gas Swap Price

BBtu

$/MMbtu

2Q26

12,740

$3.73

3Q26

12,880

$3.73

4Q26

12,880

$3.73

1Q27

7,200

$3.91

2Q27

7,280

$3.91

3Q27

7,360

$3.91

4Q27

7,360

$3.91

More detailed information about the Partnership's existing hedging program can be found in the Quarterly Report on Form 10-Q for the first quarter of 2026, which is expected to be filed on or around May 5, 2026.

Conference Call

Black Stone Minerals will host a conference call and webcast for investors and analysts to discuss its results for the first quarter of 2026 on Tuesday, May 5, 2026 at 9:00 a.m. Central Time. Black Stone recommends participants who do not anticipate asking questions to listen to the call via the live broadcast available at http://investor.blackstoneminerals.com. Analysts and investors who wish to ask questions should dial (833) 461-5787 for domestic participants and (585) 542-9983 for international participants. The conference ID for the call is 490087452. A recording of the conference call will be available on Black Stone's website.

About Black Stone Minerals, L.P.

Black Stone Minerals is one of the largest owners and managers of oil and natural gas mineral interests in the United States. The Partnership owns mineral interests and royalty interests in 41 states in the continental United States. Black Stone believes its large, diversified asset base and long-lived, non-cost-bearing mineral and royalty interests provide for stable production and reserves over time, allowing the majority of generated cash flow to be distributed to unitholders.

Forward-Looking Statements

This news release includes forward-looking statements. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. Terminology such as “will,” “may,” “should,” “expect,” “anticipate,” “plan,” “project,” “intend,” “estimate,” “believe,” “target,” “continue,” “potential,” the negative of such terms, or other comparable terminology often identify forward-looking statements. Except as required by law, Black Stone Minerals undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this news release. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release. All forward-looking statements are qualified in their entirety by these cautionary statements. These forward-looking statements involve risks and uncertainties, many of which are beyond the control of Black Stone Minerals, which may cause the Partnership’s actual results to differ materially from those implied or expressed by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, those summarized below, as wells as the Risk Factors section in our most recent annual report on Form 10-K:

the Partnership’s ability to execute its business strategies; the volatility of realized oil and natural gas prices; the level of production on the Partnership’s properties; overall supply and demand for oil and natural gas, and regional supply and demand factors, delays, or interruptions of production; conservation measures and general concern about the environmental impact of the production and use of fossil fuels; the Partnership’s ability to replace its oil and natural gas reserves; general economic, business, or industry conditions including slowdowns, domestically and internationally, and volatility in the securities, capital, or credit markets; cybersecurity incidents, including data security breaches or computer viruses; competition in the oil and natural gas industry; the availability or cost of rigs, equipment, raw materials, supplies, oilfield services or personnel; and the level of drilling activity by the Partnership’s operators, particularly in areas such as the Shelby Trough where the Partnership has concentrated acreage positions. BLACK STONE MINERALS, L.P. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per unit amounts)

  Three Months Ended March 31,

2026

2025

REVENUE

Oil and condensate sales

$

54,114

$

50,093

Natural gas and natural gas liquids sales

63,408

58,235

Lease bonus and other income

6,387

6,925

Revenue from contracts with customers

123,909

115,253

Gain (loss) on commodity derivative instruments, net

(64,550

)

(56,001

)

TOTAL REVENUE

59,359

59,252

OPERATING (INCOME) EXPENSE

Lease operating expense

1,893

2,162

Production costs and ad valorem taxes

9,200

10,185

Exploration expense

4,625

5,110

Depreciation, depletion, and amortization

9,785

9,130

General and administrative

16,832

15,172

Accretion of asset retirement obligations

389

332

TOTAL OPERATING EXPENSE

42,724

42,091

INCOME FROM OPERATIONS

16,635

17,161

OTHER INCOME (EXPENSE)

Interest and investment income

32

64

Interest expense

(3,361

)

(1,397

)

Other income (expense), net

(34

)

120

TOTAL OTHER EXPENSE

(3,363

)

(1,213

)

NET INCOME

13,272

15,948

Distributions on Series B cumulative convertible preferred units

(7,366

)

(7,366

)

NET INCOME ATTRIBUTABLE TO THE GENERAL PARTNER AND COMMON UNITS

$

5,906

$

8,582

ALLOCATION OF NET INCOME:

General partner interest

$

—

$

—

Common units

5,906

8,582

$

5,906

$

8,582

NET INCOME ATTRIBUTABLE TO LIMITED PARTNERS PER COMMON UNIT:

Per common unit (basic)

$

0.03

$

0.04

Per common unit (diluted)

$

0.03

$

0.04

WEIGHTED AVERAGE COMMON UNITS OUTSTANDING:

Weighted average common units outstanding (basic)

212,369

211,253

Weighted average common units outstanding (diluted)

212,369

211,253

The following table shows the Partnership’s production, revenues, pricing, and expenses for the periods presented:

Three Months Ended March 31,

2026

2025

(Unaudited)

(Dollars in thousands, except for realized prices and per Boe data)

Production:

Oil and condensate (MBbls)

785

716

Natural gas (MMcf)1

15,266

14,853

Equivalents (MBoe)

3,329

3,192

Equivalents/day (MBoe)

37.0

35.5

Realized prices, without derivatives:

Oil and condensate ($/Bbl)

$

68.94

$

69.96

Natural gas ($/Mcf)1

4.15

3.92

Equivalents ($/Boe)

$

35.30

$

33.94

Revenue:

Oil and condensate sales

$

54,114

$

50,093

Natural gas and natural gas liquids sales1

63,408

58,235

Lease bonus and other income

6,387

6,925

Revenue from contracts with customers

123,909

115,253

Gain (loss) on commodity derivative instruments

(64,550

)

(56,001

)

Total revenue

$

59,359

$

59,252

Operating expenses:

Lease operating expense

$

1,893

$

2,162

Production costs and ad valorem taxes

9,200

10,185

Exploration expense

4,625

5,110

Depreciation, depletion, and amortization

9,785

9,130

General and administrative

16,832

15,172

Other expense:

Interest expense

3,361

1,397

Per Boe:

Lease operating expense (per working-interest Boe)

$

18.77

$

18.66

Production costs and ad valorem taxes

2.76

3.19

Depreciation, depletion, and amortization

2.94

2.86

General and administrative

5.06

4.75

Non-GAAP Financial Measures

Adjusted EBITDA and Distributable Cash Flow are supplemental non-GAAP financial measures used by Black Stone’s management and external users of the Partnership’s financial statements such as investors, research analysts, and others, to assess the financial performance of its assets and its ability to sustain distributions over the long term without regard to financing methods, capital structure, or historical cost basis.

The Partnership defines Adjusted EBITDA as net income (loss) before interest expense, income taxes, and depreciation, depletion, and amortization adjusted for impairment of oil and natural gas properties, if any, accretion of asset retirement obligations, seismic data acquisition costs, non-cash equity-based compensation, unrealized gains and losses on commodity derivative instruments, and gains and losses on sales of assets, if any. Black Stone defines Distributable Cash Flow as Adjusted EBITDA plus or minus amounts for certain non-cash operating activities, cash interest expense, distributions to preferred unitholders, and restructuring charges, if any.

Beginning with the three months and year ended December 31, 2025, the Partnership revised its definition of Adjusted EBITDA to exclude seismic data acquisition costs, which are included in Exploration expense on the Partnership’s consolidated statements of operations. Comparative amounts for the three months ended March 31, 2026 and 2025, respectively, for each of Adjusted EBITDA and Distributable Cash Flow have been recast to conform to the current period presentation. Management believes this revised definition enhances comparability between periods and reflects the Partnership’s view of seismic data acquisition costs as investments that support the long-term development and value of its mineral and royalty interests.

Adjusted EBITDA and Distributable Cash Flow should not be considered an alternative to, or more meaningful than, net income (loss), income (loss) from operations, cash flows from operating activities, or any other measure of financial performance presented in accordance with generally accepted accounting principles ("GAAP") in the United States as measures of the Partnership’s financial performance.

Adjusted EBITDA and Distributable Cash Flow have important limitations as analytical tools because they exclude some but not all items that affect net income (loss), the most directly comparable U.S. GAAP financial measure. The Partnership’s computation of Adjusted EBITDA and Distributable Cash Flow may differ from computations of similarly titled measures of other companies.

Three Months Ended March 31,

2026

2025

(Unaudited)

(In thousands, except per unit amounts)

Net income

$

13,272

$

15,948

Adjustments to reconcile to Adjusted EBITDA:

Depreciation, depletion, and amortization

9,785

9,130

Interest expense

3,361

1,397

Income tax expense (benefit)

62

(85

)

Accretion of asset retirement obligations

389

332

Seismic data acquisition costs

4,256

4,829

Equity–based compensation

3,551

3,055

Unrealized (gain) loss on commodity derivative instruments

52,306

52,390

Adjusted EBITDA

86,982

86,996

Adjustments to reconcile to Distributable Cash Flow:

Change in deferred revenue

(1

)

(1

)

Cash interest expense

(3,099

)

(1,123

)

Preferred unit distributions

(7,366

)

(7,366

)

Distributable Cash Flow

$

76,516

$

78,506

Total units outstanding1

212,499

211,636

Distributable Cash Flow per unit

$

0.360

$

0.371

More News From Black Stone Minerals, L.P.

I identify six 'safer' Dividend Power stocks—IVR, EFC, BBDC, IRS, BSM, GAIN—offering high yields supported by free cash flow. Analyst forecasts suggest top-ten DiviPower stocks could deliver average net gains of 52.98% by May 2027, with risk 36% below the market. The Dividend Power strategy favors high earnings yield and high dividend yield, producing portfolios resilient in downturns and responsive in bull markets.

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Precision Drilling Corporation (PD:CA) Shareholder/Analyst Call Prepared Remarks Transcript

First quarter revenue increased 1% year over year to $121 million

Annual Recurring Revenue ("ARR") remained flat year over year at $496 million

First quarter operating income was $9 million; non-GAAP operating income was $30 million

Net income was $10 million, representing the fourth consecutive quarter of GAAP profitability

Announced $100 million share repurchase program

John DiLullo named as Chief Executive Officer and Jennifer Tejada transitions to Executive Chair of Board of Directors

SAN FRANCISCO--(BUSINESS WIRE)--PagerDuty, Inc. (NYSE:PD), a leader in AI-first operations management, today announced financial results for the first quarter of fiscal 2027, ended April 30, 2026.

“Our Q1 results exceeded guidance for both revenue and non-GAAP operating margin, reflecting continued execution against our strategic and operational priorities,” said Jennifer Tejada, Executive Chair, PagerDuty. “Our expanding AI offers and the introduction of the new Operations Cloud usage-based package, further strengthens our platform and positions PagerDuty to accelerate long-term growth.”

Tejada continued, “John is off to a great start in leading PagerDuty through its next chapter with a strong foundation, meaningful product and business momentum and a significant opportunity ahead.”

First Quarter Fiscal 2027 Financial Highlights

Revenue was $121.0 million, an increase of 1.0% year over year. Operating income was $9.2 million; operating margin was 7.6%. Non-GAAP operating income was $29.7 million; non-GAAP operating margin was 24.6%. Net income was $10.2 million, representing the Company's fourth consecutive quarter of GAAP profitability. Net income per diluted share attributable to PagerDuty, Inc. common stockholders was $0.13. Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders was $0.32. Net cash provided by operating activities was $44.3 million; free cash flow was $41.2 million. Cash, cash equivalents, and investments were $444.0 million as of April 30, 2026. The section titled “Non-GAAP Financial Measures” below contains a description of the non-GAAP financial measures and reconciliations between GAAP and non-GAAP financial information.

First Quarter and Recent Highlights

ARR as of April 30, 2026 remained flat year over year at $496 million. Customers with ARR over $100 thousand grew 1% to 860 as of April 30, 2026, compared to 848 as of April 30, 2025. Dollar-based net retention rate was 97% as of April 30, 2026, compared to 104% as of April 30, 2025. Total paid customers were 15,380 as of April 30, 2026, compared to 15,247 as of April 30, 2025. Paid and free customers totaled more than 36,000 as of April 30, 2026, representing approximately 14% growth since April 30, 2025. Remaining performance obligations were $441 million as of April 30, 2026. Of this amount, the Company expects to recognize revenue of approximately $316 million, or 72%, over the next 12 months, $100 million, or 23%, over months 13 to 24, and the remainder thereafter. Lands and expands include: The Boston Consulting Group, Coreweave, Inc., The Gap, Inc., General Motors Company, LightSpun, Palo Alto Networks, Inc., and Vodafone Group Public Limited Company. Appointed John DiLullo as Chief Executive Officer and announced Jennifer Tejada’s transition to Executive Chair of Board of Directors after serving as CEO since 2016. Announced the expansion of PagerDuty’s AI integration ecosystem, with strategic partnerships with Anthropic, Cursor, and LangChain. Announced enhancements to the PagerDuty Advance SRE Agent. Features new automated triage capabilities triggered directly from a team’s automated workflows to accelerate incident response. Named a Leader and Outperformer in 2026 Gigaom Radar for IT Incident Response Platforms for Fourth Consecutive Year. Published the 2026 State of AI-First Operations Report, which illustrates how the financial state of extended service disruption has made operational resilience a top priority. Approved for the 2026 Trust Radius - Trusted Seller verification marking PagerDuty as one of the elite companies on TrustRadius. Named a finalist for the Best Technology for Good Initiative Category in the 2026 Halo Awards. Received silver in the 2026 American Business Awards for Corporate Social Responsibility Program of the Year. Recognized as a finalist for six Inspiring Workplaces in 2026: Latin America, Europe, UK & Ireland, North America, Australia & New Zealand, and Asia. Announced PagerDuty’s latest Impact cohort including grants to eight nonprofits focused on healthcare, humanitarian and crisis-response. Financial Outlook

For the second quarter of fiscal 2027, PagerDuty currently expects:

Total revenue of $122.0 million - $124.0 million. Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders of $0.29 - $0.31 assuming approximately 78 million diluted shares and a non-GAAP tax rate of 20%. For the full fiscal year 2027, PagerDuty currently expects:

Total revenue of $488.5 million - $496.5 million, consistent with previous guidance. Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders of $1.27 - $1.32 (up from $1.23 - $1.28) assuming approximately 79 million diluted shares and a non-GAAP tax rate of 20%. These statements are forward-looking and actual results may differ materially. Please refer to the section titled "Forward-Looking Statements" below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

PagerDuty has not reconciled its expectations as to non-GAAP net income per share attributable to PagerDuty, Inc. common stockholders to GAAP net loss per share attributable to PagerDuty, Inc. common stockholders because certain reconciling items such as stock-based compensation expense, employer taxes related to employee stock transactions, acquisition-related expenses, restructuring costs, gains or losses on extinguishment of convertible senior notes, adjustment attributable to redeemable non-controlling interest, and income tax effects and adjustments are out of PagerDuty's control or cannot be reasonably predicted. Accordingly, such reconciliation is not available without unreasonable effort. However, it is important to note that these reconciling items could have a significant effect on PagerDuty's future GAAP results.

Conference Call Information

PagerDuty will host a conference call and live webcast (Zoom meeting ID 977 8380 9980) for analysts and investors at 2:00 p.m. Pacific Time on May 28, 2026. For audio only, the dial-in number 1-312-626-6799 may be used. This news release with the financial results will be accessible from PagerDuty’s website at investor.pagerduty.com prior to the conference call. A live webcast of the conference call will be accessible from the PagerDuty investor relations website at investor.pagerduty.com.

Supplemental Financial and Other Information

Supplemental financial and other information can be accessed through PagerDuty’s investor relations website at investor.pagerduty.com. PagerDuty uses the investor relations section on its website as the means of complying with its disclosure obligations under Regulation FD. Accordingly, we recommend that investors monitor PagerDuty’s investor relations website in addition to following PagerDuty’s press releases, SEC filings, social media, including PagerDuty’s LinkedIn account (https://www.linkedin.com/company/482819), X (formerly Twitter) account @pagerduty, and Facebook page (facebook.com/pagerduty), and public conference calls and webcasts.

Forward-Looking Statements

This press release and the related webcast contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our future financial and operational performance and outlook, and strategies, objectives, opportunity, expectations and market positioning. Words such as “expect,” “extend,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “accelerate,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks and other factors detailed in our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 12, 2026. Additional information will be made available in our Quarterly Report on Form 10-Q for the quarter ended April 30, 2026 and other filings and reports that we may file from time to time with the SEC. In particular, the following risks and uncertainties, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: our ability to maintain or increase profitability; our ability to sustain or increase growth and effectively manage changes in our business and industry; our ability to attract new customers and retain and sell additional functionality and services to our existing customers; our ability to attract and retain executives and employees we need to support our operations and growth; our dependence on a majority of our revenue from a single product; our ability to compete effectively in an increasingly competitive market; the impact of seasonality on our business; our ability to adapt and respond effectively to rapidly developing technology; our ability to effectively develop and expand our marketing and sales capacities; our ability to enhance and improve our platform or develop new functionality or use cases; the effect of unfavorable conditions in our industry or the global economy, or reductions in information technology spending, on our business and results of operations; adverse consequences that could arise as a result of international trade policies, geopolitical developments, and macroeconomic conditions, including tariffs, sanctions, trade barriers and global instability; the accuracy of our estimates of market opportunity and forecasts of market growth; our assumptions and limitations to which ARR and certain other operational data are subject that may cause such metrics to not provide an accurate indication of actual performance or future results; adverse consequences that could result from any compromise of our information technology systems or those of third parties with whom we work or our data; adverse consequences that could result from any interruptions or delays in performance of our service; and our ability to maintain the compatibility of our platform with third party applications that our customers use in their businesses.

Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release and the related webcast represent our views as of the date of this press release and the related webcast. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release and the related webcast.

About PagerDuty, Inc.

PagerDuty, Inc. (NYSE: PD) is the global leader in AI-first digital operations. By automatically detecting, diagnosing, and remediating issues, the PagerDuty Operations Cloud acts as the central control plane for the modern enterprise - orchestrating AI agents and automated workflows with context from over 750 integrations. Trusted by approximately two-thirds of the Fortune 100 and nearly half of the Fortune 500, PagerDuty is the industry standard for organizations scaling resilient, autonomous operations. Learn more and try it for free at www.pagerduty.com.

The PagerDuty Operations Cloud

The PagerDuty Operations Cloud is an AI-powered platform that automates and orchestrates the entire incident management lifecycle - from detection to resolution, providing resilience at scale. Designed for mission-critical operations, the platform empowers teams to identify and diagnose disruptions in real time, mobilizing the right teams to quickly streamline workflows to solve digital issues before they become incidents. The PagerDuty Operations Cloud is essential for delivering flawless, always-on digital experiences that organizations and consumers expect today.

PAGERDUTY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

  Three months ended April 30,

2026

2025

Revenue

$

120,967

$

119,805

Cost of revenue(1)

19,020

19,184

Gross profit

101,947

100,621

Operating expenses:

Research and development(1)

29,988

34,048

Sales and marketing(1)

39,610

50,045

General and administrative(1)

23,166

26,855

Total operating expenses

92,764

110,948

Income (loss) from operations

9,183

(10,327

)

Interest income

3,926

6,011

Interest expense

(2,107

)

(2,364

)

Other (expense) income, net

(71

)

114

Income (loss) before provision for income taxes

10,931

(6,566

)

Provision for income taxes

5,801

813

Net income (loss)

$

5,130

$

(7,379

)

Net loss attributable to redeemable non-controlling interest

(153

)

(217

)

Net income (loss) attributable to PagerDuty, Inc.

$

5,283

$

(7,162

)

Less: Adjustment attributable to redeemable non-controlling interest

(4,963

)

(665

)

Net income (loss) attributable to PagerDuty, Inc. common stockholders

$

10,246

$

(6,497

)

Weighted-average shares used in calculating net income (loss) per share:

Basic

78,647

91,374

Diluted

79,464

91,374

Net income (loss) per share attributable to PagerDuty, Inc. common stockholders

Basic

$

0.13

$

(0.07

)

Diluted

$

0.13

$

(0.07

)

(1) Includes stock-based compensation expense as follows:

  Three months ended April 30,

2026

2025

Cost of revenue

$

849

$

1,097

Research and development

6,137

9,840

Sales and marketing

4,184

6,219

General and administrative

6,793

8,597

Total

$

17,963

$

25,753

PAGERDUTY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

  April 30, 2026

January 31, 2026

Assets

Current assets:

Cash and cash equivalents

$

208,880

$

237,402

Investments

235,077

232,436

Accounts receivable, net of allowance for credit losses of $693 and $1,175 as of April 30, 2026 and January 31, 2026, respectively

76,025

108,430

Deferred contract costs, current

18,181

18,401

Prepaid expenses and other current assets

20,867

15,570

Total current assets

559,030

612,239

Property and equipment, net

31,938

29,192

Deferred contract costs, non-current

24,681

25,010

Lease right-of-use assets

11,516

12,509

Goodwill

137,401

137,401

Intangible assets, net

14,705

15,645

Deferred tax assets

153,657

153,657

Other assets

3,664

4,862

Total assets

$

936,592

$

990,515

Liabilities, redeemable non-controlling interest, and stockholders’ equity

Current liabilities:

Accounts payable

$

4,438

$

6,718

Accrued expenses and other current liabilities

15,240

19,868

Accrued compensation

21,465

25,856

Deferred revenue, current

240,620

246,451

Lease liabilities, current

5,249

5,000

Total current liabilities

287,012

303,893

Convertible senior notes, net, non-current

396,327

395,729

Deferred revenue, non-current

2,747

2,483

Lease liabilities, non-current

11,174

12,598

Other liabilities

10,845

5,147

Total liabilities

708,105

719,850

Redeemable non-controlling interest

11,956

17,072

Stockholders' equity

Common stock

—

—

Additional paid-in capital

633,760

679,410

Accumulated other comprehensive loss

(715

)

(183

)

Accumulated deficit

(416,514

)

(421,797

)

Treasury stock

—

(3,837

)

Total stockholders’ equity

216,531

253,593

Total liabilities, redeemable non-controlling interest, and stockholders' equity

$

936,592

$

990,515

PAGERDUTY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

  Three months ended April 30,

2026

2025

Cash flows from operating activities:

Net income (loss) attributable to PagerDuty, Inc. common stockholders

$

10,246

$

(6,497

)

Net loss and adjustment attributable to redeemable non-controlling interest

(5,116

)

(882

)

Net income (loss)

5,130

(7,379

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

3,056

3,962

Amortization of deferred contract costs

5,201

5,514

Amortization of debt issuance costs

595

677

Stock-based compensation

17,963

25,753

Non-cash lease expense

985

379

Deferred income taxes

5,736

162

Other

(595

)

(811

)

Changes in operating assets and liabilities:

Accounts receivable

32,618

27,610

Deferred contract costs

(4,693

)

(4,579

)

Prepaid expenses and other assets

(5,045

)

(3,316

)

Accounts payable

(2,825

)

103

Accrued expenses and other liabilities

(2,803

)

(1,973

)

Accrued compensation

(4,493

)

(8,336

)

Deferred revenue

(5,380

)

(6,411

)

Lease liabilities

(1,167

)

(685

)

Net cash provided by operating activities

44,283

30,670

Cash flows from investing activities:

Purchases of property and equipment

(965

)

(441

)

Capitalized software costs

(2,126

)

(1,243

)

Purchases of available-for-sale investments

(40,296

)

(44,148

)

Proceeds from maturities of available-for-sale investments

37,420

44,400

Purchases of non-marketable equity investments

—

(250

)

Proceeds from liquidation of non-marketable equity investments

894

—

Net cash used in investing activities

(5,073

)

(1,682

)

Cash flows from financing activities:

Repurchases of common stock

(65,456

)

—

Proceeds from issuance of common stock upon exercise of stock options

4

3,602

Employee payroll taxes paid related to net share settlement of restricted stock units

(2,156

)

(7,557

)

Net cash used in financing activities

(67,608

)

(3,955

)

Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash

(124

)

335

Net change in cash, cash equivalents, and restricted cash

(28,522

)

25,368

Cash, cash equivalents, and restricted cash at beginning of period

238,481

348,328

Cash, cash equivalents, and restricted cash at end of period

$

209,959

$

373,696

Non-GAAP Financial Measures

This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP research and development, non-GAAP sales and marketing, non-GAAP general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income attributable to PagerDuty, Inc. common stockholders, non-GAAP net income per share attributable to PagerDuty, Inc. common stockholders, free cash flow, and free cash flow margin.

PagerDuty believes that non-GAAP financial measures, when taken collectively, may be helpful to investors because they provide consistency and comparability with past financial performance and can assist in comparisons with other companies, some of which use similar non-GAAP financial measures to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies.

The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in PagerDuty’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by PagerDuty’s management about which expenses and income are excluded or included in determining these non-GAAP financial measures. A reconciliation is provided below for each historical non-GAAP financial measure to the most directly comparable financial measure presented in accordance with GAAP.

Specifically, PagerDuty excludes the following from its historical and prospective non-GAAP financial measures, as applicable:

Stock-based compensation: PagerDuty utilizes stock-based compensation to attract and retain employees. It is principally aimed at aligning their interests with those of its stockholders and at long-term retention, rather than to address operational performance for any particular period. As a result, stock-based compensation expenses vary for reasons that are generally unrelated to financial and operational performance in any particular period.

Employer taxes related to employee stock transactions: PagerDuty views the amount of employer taxes related to its employee stock transactions as an expense that is dependent on its stock price, employee exercise and other award disposition activity, and other factors that are beyond PagerDuty’s control. As a result, employer taxes related to employee stock transactions vary for reasons that are generally unrelated to financial and operational performance in any particular period.

Amortization of acquired intangible assets: PagerDuty views amortization of acquired intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are evaluated for impairment regularly, amortization of the cost of purchased intangibles is an expense that is not typically affected by operations during any particular period.

Acquisition-related expenses: PagerDuty views acquisition-related expenses, such as transaction costs, acquisition-related retention payments, and acquisition-related asset impairment, as events that are not necessarily reflective of operational performance during a period. In particular, PagerDuty believes the consideration of measures that exclude such expenses can assist in the comparison of operational performance in different periods which may or may not include such expenses.

Amortization of debt issuance costs: The imputed interest rates of the Company's convertible senior notes (the "2025 Notes" and the "2028 Notes" or, collectively, the "Notes") was approximately 1.91% for the 2025 Notes and 2.13% for the 2028 Notes. This is a result of the debt issuance costs, which reduce the carrying value of the convertible debt instruments. The debt issuance costs are amortized as interest expense. The expense for the amortization of the debt issuance costs is a non-cash item, and we believe the exclusion of this interest expense will provide for a more useful comparison of our operational performance in different periods.

Restructuring costs: PagerDuty views restructuring costs, such as employee severance-related costs as events that are not necessarily reflective of operational performance during a period. In particular, PagerDuty believes the consideration of measures that exclude such expenses can assist in the comparison of operational performance in different periods which may or may not include such expenses.

Shareholder matters: PagerDuty views certain charges, including third-party legal, consulting, and advisory fees, related to shareholder activity that are outside of the ordinary course of our business and expenses related to a cooperation agreement as events that are not necessarily reflective of operational performance during a period. PagerDuty believes that such charges do not have a direct correlation to the operations of the Company’s business and may vary in size depending on the timing, results, and resolution of such shareholder matters. The consideration of measures that exclude such expenses can assist in the comparison of operational performance in periods which may or may not include such expenses.

Adjustment attributable to redeemable non-controlling interest: PagerDuty adjusts the value of redeemable non-controlling interest of its joint venture PagerDuty K.K. according to the operating agreement. PagerDuty believes this adjustment is not reflective of operational performance during a period and exclusion of such adjustments can assist in comparison of operational performance in different periods.

Income tax effects and adjustments: Based on PagerDuty's financial outlook for fiscal 2027, PagerDuty is utilizing a projected non-GAAP tax rate of 20%. For fiscal 2026, PagerDuty used a projected non-GAAP tax rate of 22%. PagerDuty uses a projected non-GAAP tax rate in order to provide better consistency across the interim reporting periods by eliminating the impact of non-recurring and period specific items, which can vary in size and frequency. PagerDuty's estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that PagerDuty believes materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses and other significant events.

Non-GAAP gross profit and non-GAAP gross margin

We define non-GAAP gross profit as gross profit excluding the following expenses typically included in cost of revenue: stock-based compensation expense, employer taxes related to employee stock transactions, amortization of acquired intangible assets, and restructuring costs. We define non-GAAP gross margin as non-GAAP gross profit as a percentage of revenue.

Non-GAAP operating expenses

We define non-GAAP operating expenses as operating expenses excluding stock-based compensation expense, employer taxes related to employee stock transactions, amortization of acquired intangible assets, acquisition-related expenses, restructuring costs, and shareholder matters, which are not necessarily reflective of operational performance during a given period.

Non-GAAP operating income and non-GAAP operating margin

We define non-GAAP operating income as income (loss) from operations excluding stock-based compensation expense, employer taxes related to employee stock transactions, amortization of acquired intangible assets, acquisition-related expenses, restructuring costs, and shareholder matters, which are not necessarily reflective of operational performance during a given period. We define non-GAAP operating margin as non-GAAP operating income as a percentage of revenue.

Non-GAAP net income attributable to PagerDuty, Inc. common stockholders

We define non-GAAP net income attributable to PagerDuty, Inc. common stockholders as net income (loss) attributable to PagerDuty, Inc. common stockholders excluding stock-based compensation expense, employer taxes related to employee stock transactions, amortization of debt issuance costs, amortization of acquired intangible assets, acquisition-related expenses, shareholder matters, adjustment attributable to redeemable non-controlling interest, and income tax effects and adjustments, which are not necessarily reflective of operational performance during a given period.

Non-GAAP net income per share, basic and diluted

We define non-GAAP net income per share, basic as non-GAAP net income attributable to PagerDuty, Inc. common stockholders divided by weighted average shares outstanding at the end of the reporting period. We define non-GAAP net income per share, diluted as non-GAAP net income attributable to PagerDuty, Inc. common stockholders divided by weighted average diluted shares outstanding at the end of the reporting period.

Free cash flow and free cash flow margin

We define free cash flow as net cash provided by operating activities, less cash used for purchases of property and equipment and capitalization of software costs. We define free cash flow margin as free cash flow as a percentage of revenue. In addition to the reasons stated above, we believe that free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash in excess of our capital investments in property and equipment in order to enhance the strength of our balance sheet and further invest in our business and potential strategic initiatives. A limitation of the utility of free cash flow as a measure of our liquidity is that it does not represent the total increase or decrease in our cash balance for the period. We use free cash flow in conjunction with traditional U.S. GAAP measures as part of our overall assessment of our liquidity, including the preparation of our annual operating budget and quarterly forecasts and to evaluate the effectiveness of our business strategies. There are a number of limitations related to the use of free cash flow as compared to net cash provided by operating activities, including that free cash flow includes capital expenditures, the benefits of which are realized in periods subsequent to those when expenditures are made.

PagerDuty encourages investors to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate PagerDuty’s business.

Please see the reconciliation tables at the end of this release for the reconciliation of non-GAAP financial measures to their most-comparable GAAP financial measures.

PAGERDUTY, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except percentages and per share data)
(unaudited)

  Three months ended April 30,

2026

2025

Non-GAAP gross profit and non-GAAP gross margin

Gross profit

$

101,947

$

100,621

Add:

Stock-based compensation

849

1,097

Employer taxes related to employee stock transactions

11

38

Amortization of acquired intangible assets

320

1,273

Restructuring costs

332

—

Non-GAAP gross profit

$

103,459

$

103,029

Revenue

$

120,967

$

119,805

Gross margin

84.3

%

84.0

%

Non-GAAP gross margin

85.5

%

86.0

%

Non-GAAP operating expenses

Research and development

$

29,988

$

34,048

Less:

Stock-based compensation

6,137

9,840

Employer taxes related to employee stock transactions

105

304

Acquisition-related expenses

—

228

Restructuring costs

—

1,373

Non-GAAP research and development

$

23,746

$

22,303

Sales and marketing

$

39,610

$

50,045

Less:

Stock-based compensation

4,184

6,219

Employer taxes related to employee stock transactions

49

182

Amortization of acquired intangible assets

620

633

Restructuring costs

1,099

2,210

Non-GAAP sales and marketing

$

33,658

$

40,801

General and administrative

$

23,166

$

26,855

Less:

Stock-based compensation

6,793

8,597

Employer taxes related to employee stock transactions

61

194

Restructuring costs

—

228

Shareholder matters

—

2,270

Non-GAAP general and administrative

$

16,312

$

15,566

PAGERDUTY, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(in thousands, except percentages and per share data)
(unaudited)

  Three months ended April 30,

2026

2025

Non-GAAP operating income and non-GAAP operating margin

Income (loss) from operations

$

9,183

$

(10,327

)

Add:

Stock-based compensation

17,963

25,753

Employer taxes related to employee stock transactions

226

718

Amortization of acquired intangible assets

940

1,906

Acquisition-related expenses

—

228

Restructuring costs

1,431

3,811

Shareholder matters

—

2,270

Non-GAAP operating income

$

29,743

$

24,359

Revenue

$

120,967

$

119,805

Operating margin

7.6

%

(8.6

)%

Non-GAAP operating margin

24.6

%

20.3

%

Non-GAAP net income attributable to PagerDuty, Inc. common stockholders

Net income (loss) attributable to PagerDuty, Inc. common stockholders

$

10,246

$

(6,497

)

Add:

Stock-based compensation

17,963

25,753

Employer taxes related to employee stock transactions

226

718

Amortization of debt issuance costs

595

677

Amortization of acquired intangible assets

940

1,906

Acquisition-related expenses

—

228

Restructuring costs

1,431

3,811

Shareholder matters

—

2,270

Adjustment attributable to redeemable non-controlling interest

(4,963

)

(665

)

Income tax effects and adjustments

(616

)

(5,522

)

Non-GAAP net income attributable to PagerDuty, Inc. common stockholders

$

25,822

$

22,679

Non-GAAP net income per share, basic

Net income (loss) per share attributable to PagerDuty, Inc. common stockholders

$

0.13

$

(0.07

)

Non-GAAP adjustments to net income (loss) per share attributable to PagerDuty, Inc. common stockholders

0.20

0.32

Non-GAAP net income per share attributable to PagerDuty, Inc. common stockholders

$

0.33

$

0.25

Non-GAAP net income per share, diluted

Net income (loss) per share attributable to PagerDuty, Inc. common stockholders

$

0.13

$

(0.07

)

Non-GAAP adjustments to net income (loss) per share attributable to PagerDuty, Inc. common stockholders

0.20

0.31

Non-GAAP net income per share attributable to PagerDuty, Inc. common stockholders

$

0.32

$

0.24

Weighted-average shares used in calculating net income per share

Basic

78,647

91,374

Diluted

79,464

91,374

Weighted-average shares used in calculating non-GAAP net income per share

Basic

78,647

91,374

Diluted

79,464

93,656

PAGERDUTY, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(in thousands, except percentages)
(unaudited)

  Three months ended April 30,

2026

2025

Free cash flow and free cash flow margin

Net cash provided by operating activities

$

44,283

$

30,670

Purchases of property and equipment

(965

)

(441

)

Capitalization of software costs

(2,126

)

(1,243

)

Free cash flow

$

41,192

$

28,986

Net cash used in investing activities

$

(5,073

)

$

(1,682

)

Net cash used in financing activities

$

(67,608

)

$

(3,955

)

Revenue

$

120,967

$

119,805

Operating cash flow margin

36.6

%

25.6

%

Free cash flow margin

34.1

%

24.2

%

More News From PagerDuty, Inc.

2 Earnings Dumpers Worth a Second LookPagerDuty NYSE: PD reported fiscal first-quarter results that exceeded its revenue and non-GAAP operating margin guidance, while the company highlighted early traction from its shift toward usage-based pricing and announced a leadership transition.

Jennifer, who has served as CEO for 10 years, said she has transitioned to executive chair and introduced John DiLullo as PagerDuty’s new CEO. She said DiLullo’s appointment followed a “deliberate and comprehensive succession process” conducted with the board. DiLullo previously served as CEO of Deepwatch, LiveVox and Lastline, and said his near-term priority is to “listen, learn, and engage” with employees, customers and partners.

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This Small Tech With Big Growth Prospects Is Nearing A Buy Point“What stands out to me is the strength of the foundation, a trusted brand, an enviable customer base, and a platform that sits at the core of real-time, mission-critical operations,” DiLullo said.

First-Quarter Revenue Edges Higher as Margins Expand PagerDuty reported quarterly revenue of $121 million, up 1% year-over-year. Annual recurring revenue was $496 million, flat compared with the prior-year period. The company said non-GAAP operating margin reached 25%, compared with 20% in the same quarter last year, reflecting efficiency initiatives and operating discipline.

Helmerich & Payne Stock, A Lot More Upside Than Meets the EyeHoward said GAAP net income was $10.2 million, marking the company’s fourth consecutive quarter of GAAP profitability. First-quarter gross margin was 86%, at the high end of the company’s target range of 84% to 86%.

Cash from operations totaled $44 million, or 37% of revenue, while free cash flow was $41 million, or 34% of revenue. PagerDuty ended the quarter with $444 million in cash equivalents and investments. Howard said the strong cash generation gives the company flexibility to invest in go-to-market changes and AI product development while continuing shareholder returns.

The company repurchased 8.5 million shares for $63 million during the quarter and completed its previously authorized $200 million share repurchase program. It also announced a new $100 million share repurchase authorization.

Usage-Based Pricing Model Shows Early Traction Management emphasized the company’s transition from seat-based licensing toward usage-based pricing through its Operations Cloud offering. Jennifer said PagerDuty historically sold products including Enterprise Incident Management, Customer Service Operations and Runbook Automation through seat-based licenses, while Event Intelligence and AI products were sold on a usage basis. The full suite is now available through an integrated platform with usage-based pricing.

Usage-based products, including AIOps, PagerDuty Advance and Operations Cloud, now represent nearly 10% of total ARR, Jennifer said. Howard added that the ARR of customers on the Operations Cloud pricing model nearly doubled from the fourth quarter to the first quarter. More than 15 customers spending over $100,000 annually have transitioned to the model.

Jennifer said early Operations Cloud customers are using more capabilities across incident management, incident workflows, Event Intelligence and agents. She said the model reduces friction tied to adding users across departments and can help customers expand usage through events, AI actions and automated workflows.

“Customers who deploy the Operations Cloud with our new professional services model see an over 80% improvement in time to value and 50% higher product engagement compared to those who self-implement,” Jennifer said.

Customer Metrics and Retention Remain in Focus PagerDuty said dollar-based net retention was 97%. Howard said customer success and renewal initiatives contributed to an improvement in gross retention from the fourth quarter to the first quarter, and the company expects gradual improvement through the year.

Customers spending more than $100,000 in annual recurring revenue totaled 860, up 1% year-over-year. Total paid customers reached 15,380 in the first quarter, while free and paid customers on the platform grew to more than 36,000, an increase of approximately 14% from the prior-year quarter.

Jennifer said PagerDuty acquired more than 600 new customers for the fifth consecutive quarter. She cited demand from large enterprises and AI-native companies, including CoreWeave and Anduril, as well as new customers such as Lightsfund, Dropzone AI and Simile.

The company also highlighted several enterprise wins and expansions, including a Fortune 500 automotive manufacturer that migrated from a seat-based plan to Operations Cloud, a Fortune 100 financial institution that expanded to support a site reliability engineering model, and a North American retailer that signed a multi-year, seven-figure agreement involving Operations Cloud and Runbook Automation.

AI Strategy Central to Growth Outlook Management framed AI as a driver of both operational complexity and demand for PagerDuty’s platform. Jennifer said AI is creating a “new operational risk layer” by accelerating software development and deployment, increasing volume and complexity in production environments, and making failures less predictable.

PagerDuty’s platform strategy is built around AI and automation, full lifecycle incident management, and platform and ecosystem extensibility, Jennifer said. She pointed to the company’s SRE Agent, launched in October, as an example of its AI focus. The agent acts as a virtual responder that gathers signals, performs approved remediations and uses operational memory from past incidents.

Jennifer also cited chat-native incident management in Slack and Microsoft Teams and partnerships involving Anthropic, Claude, Cursor and LangChain as part of the company’s AI ecosystem.

Guidance Calls for Flat Revenue Growth For the second quarter of fiscal 2027, PagerDuty expects revenue of $122 million to $124 million, with the midpoint approximately flat year-over-year. The company projected net income per diluted share attributable to PagerDuty Inc. of $0.29 to $0.31 and an operating margin of 22% to 23%.

For the full fiscal year 2027, PagerDuty maintained its revenue outlook of $488.5 million to $496.5 million, with the midpoint essentially flat year-over-year. The company raised its net income per diluted share outlook to $1.27 to $1.32, citing a reduced share count from the completed buyback program. The full-year outlook implies an operating margin of 24% to 25%.

Howard said first-quarter free cash flow was elevated due to better-than-expected collections, which the company expects to normalize in the second quarter. He also said some first-quarter operating margin outperformance reflected marketing program spending that is expected to be deployed in the second quarter.

In her closing remarks, Jennifer said PagerDuty has “a durable balance sheet, expanding operating margins, and a clear strategy to navigate and win in the AI-first world,” while expressing confidence in DiLullo’s leadership as the company begins its next phase.

About PagerDuty NYSE: PDPagerDuty, Inc engages in the operation of a digital operations management platform in the United States and internationally. The company's digital operations management platform collects data and digital signals from virtually any software-enabled system or device and leverage machine learning to correlate, process, and predict opportunities and issues. Its platform includes PagerDuty Incident Management that provides a real-time view across the status of a digital service while incorporating noise reduction to remove false positives; AIOps that applies machine learning to correlate and automate the identification of incidents from billions of events; Process Automation offers centralized design time and run time environment for orchestrating automated workflows that span across departments, technologies, and networks; Customer Service Operations, which is offered to orchestrate, automate, and scale responses to customer impacting issues.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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PagerDuty delivered Q1 revenue of $121 million, narrowly beating estimates but showing less than 1% year-over-year growth. Key business metrics are deteriorating: ARR was flat, large-customer counts declined, and DBNRR fell below 100%, signaling that churn is outpacing expansion. Despite weak growth, PD announced a $100 million buyback, which could reduce the share count meaningfully, but it raises a debate over capital allocation versus growth investments.

Shares of enterprise software company PagerDuty (PD +2.17%) rallied on Friday, jumping 33.8% as of 3:56 p.m. EDT.

PagerDuty runs a platform that collects data and signals from any software-enabled device, then predicts problems or remediates them as they occur. While this service could benefit from generative AI, the stock had been caught up in the "SaaS-pocalypse" this year, as investors feared AI upstarts disrupting established SaaS vendors.

However, last night's first-quarter earnings call and guidance seemed to put some concerns to rest. Meanwhile, PagerDuty benefited from a relief rally across the software sector today.

Today's Change

(

2.17

%) $

0.19

Current Price

$

8.96

Paging a big beat In the first quarter, PagerDuty saw revenue grow 1% to $121 million, while adjusted (non-GAAP) earnings per share grew 33.3% to $0.32. Both figures handily surpassed expectations. For the current quarter, management forecasts slight quarter-over-quarter revenue growth of $122 million to $124 million, with adjusted EPS of $0.29 to $0.31.

While 1% revenue growth doesn't exactly jump off the page, PagerDuty did an excellent job of expanding operating and free cash flow margins. Adjusted operating margins increased 4.3 percentage points, from 20.3% to 24.6%, while free cash flow margins expanded by nearly 10 percentage points, from 24.2% to 34.1%.

With those increased profits, PagerDuty repurchased a boatload of its own stock in the quarter to the tune of $65.5 million. That brought the average share count down by a whopping 15% relative to the year-ago quarter, while still leaving PagerDuty with a strong balance sheet, with cash and equivalents of $440 million against $396 million of convertible notes.

Image source: Getty Images.

Pagerduty still doesn't look expensive For the year ahead, PagerDuty expects $488.5 million to $496.5 million in revenue and adjusted EPS of just $1.27 to $1.32. Even after today's jump, the stock is only trading around around 7.5 times that forward adjusted EPS guidance.

On the one hand, there is a good reason PagerDuty is so cheap: its revenue growth rate has basically slowed to a halt, and even this year's revenue estimates are flat with the prior year. So, there are legitimate questions about the competitiveness of its solutions.

Yet with the stock as cheap as it was heading into earnings, it's no surprise that even a slight beat and better cash flow generation was enough to catapult shares higher.

PagerDuty, Inc. (PD) Presents at Bank of America 2026 Global Technology Conference Transcript

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is PagerDuty (PD - Free Report) . PD is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 15.36 right now. For comparison, its industry sports an average P/E of 26.79. Over the past 52 weeks, PD's Forward P/E has been as high as 28.68 and as low as 13.23, with a median of 20.09.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PD has a P/S ratio of 1.41. This compares to its industry's average P/S of 2.72.

These are just a handful of the figures considered in PagerDuty's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PD is an impressive value stock right now.