Freshworks (NASDAQ:FRSH) Issues FY 2026 Earnings Guidance

Freshworks (NASDAQ:FRSH) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 0.660-0.680 for the period, compared to the consensus estimate of 0.500. The company issued revenue guidance of $963.5 million-$966.5 million, compared to the consensus revenue estimate of $961.2 million. Freshworks also updated its Q3 2026 guidance to 0.180-0.180 EPS.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the stock. Zacks Research downgraded shares of Freshworks from a “strong-buy” rating to a “hold” rating in a research note on Friday, July 10th. Morgan Stanley cut their price objective on shares of Freshworks from $15.00 to $13.00 and set an “equal weight” rating for the company in a research report on Monday, May 11th. Robert W. Baird set a $13.00 price objective on shares of Freshworks in a research note on Wednesday. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Freshworks in a research note on Tuesday. Finally, UBS Group increased their price target on Freshworks from $11.00 to $14.00 and gave the stock a “buy” rating in a research note on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Freshworks presently has an average rating of “Hold” and an average target price of $14.17.

Freshworks Trading Up 0.7%

Shares of FRSH traded up $0.07 during mid-day trading on Thursday, reaching $11.60. The company had a trading volume of 3,441,161 shares, compared to its average volume of 11,359,343. Freshworks has a fifty-two week low of $6.79 and a fifty-two week high of $14.06. The firm has a fifty day simple moving average of $10.15 and a 200-day simple moving average of $9.18. The stock has a market cap of $3.21 billion, a price-to-earnings ratio of 18.09 and a beta of 0.86.

Freshworks (NASDAQ:FRSH) last released its quarterly earnings data on Tuesday, August 4th. The company reported $0.17 EPS for the quarter, topping analysts’ consensus estimates of $0.13 by $0.04. The business had revenue of $237.38 million during the quarter, compared to the consensus estimate of $233.62 million. Freshworks had a return on equity of 5.42% and a net margin of 20.49%.The business’s revenue for the quarter was up 16.0% on a year-over-year basis. During the same period in the prior year, the firm posted $0.18 EPS. Freshworks has set its FY 2026 guidance at 0.660-0.680 EPS and its Q3 2026 guidance at 0.180-0.180 EPS. As a group, equities analysts predict that Freshworks will post -0.02 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Jennifer H. Taylor sold 6,618 shares of Freshworks stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $10.44, for a total value of $69,091.92. Following the transaction, the director directly owned 62,673 shares of the company’s stock, valued at $654,306.12. The trade was a 9.55% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Barry L. Padgett sold 6,618 shares of the business’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $10.49, for a total value of $69,422.82. Following the sale, the director owned 47,270 shares of the company’s stock, valued at $495,862.30. The trade was a 12.28% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 27,236 shares of company stock worth $270,331 over the last three months. 8.54% of the stock is owned by insiders.

Freshworks News Roundup

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: FedRAMP progress expands the public-sector opportunity. Freshservice received “In Process” status for FedRAMP Class C (Moderate) certification and was added to the FedRAMP Marketplace. Full authorization could improve Freshworks’ ability to win contracts with U.S. federal agencies, while its partnership with Coalfire supports the compliance process. Freshworks Achieves FedRAMP In Process Designation
• Positive Sentiment: Q2 results exceeded expectations. Revenue increased 16% year over year to $237.4 million, topping the $233.6 million consensus estimate, while adjusted EPS of $0.17 exceeded expectations of $0.13. Freshworks also posted $3.2 million in GAAP net income, marking its first GAAP-profitable quarter of 2026. Freshworks Reports Record Second Quarter 2026 Results
• Positive Sentiment: Management raised its outlook. FY2026 EPS guidance was set at $0.66-$0.68, above the $0.50 consensus estimate, with revenue guidance of $963.5-$966.5 million. Third-quarter EPS guidance of $0.18 also exceeds the $0.15 consensus, reinforcing expectations for sustained profitability. Freshworks 2026 Revenue and Profitability Outlook
• Positive Sentiment: Growth in employee experience and AI remains a key catalyst. Employee-experience annual recurring revenue reportedly grew about 22%-23% year over year and now represents roughly 60% of ARR. Analysts also highlighted AI monetization, share buybacks, strong free-cash-flow potential, and an attractive valuation. Cantor Fitzgerald raised its price target to $15 from $12 and maintained an overweight rating. FRSH Q2 Earnings Call Highlights
• Neutral Sentiment: Analyst views are not uniformly bullish. Piper Sandler raised its target to $12 from $10 but kept a neutral rating, implying limited upside based on its assessment. This may temper enthusiasm following the earnings-driven rally. Analyst Price Target Changes

Hedge Funds Weigh In On Freshworks

A number of hedge funds have recently made changes to their positions in FRSH. Amundi lifted its holdings in shares of Freshworks by 1.3% during the first quarter. Amundi now owns 80,074 shares of the company’s stock valued at $1,049,000 after purchasing an additional 1,040 shares during the last quarter. Focus Partners Wealth increased its stake in Freshworks by 20.2% in the 1st quarter. Focus Partners Wealth now owns 12,399 shares of the company’s stock worth $175,000 after purchasing an additional 2,086 shares in the last quarter. Canada Pension Plan Investment Board increased its stake in Freshworks by 0.8% in the 2nd quarter. Canada Pension Plan Investment Board now owns 267,900 shares of the company’s stock worth $3,994,000 after purchasing an additional 2,100 shares in the last quarter. Summit Securities Group LLC acquired a new stake in Freshworks during the 4th quarter worth about $26,000. Finally, Vise Technologies Inc. raised its holdings in Freshworks by 16.1% during the 4th quarter. Vise Technologies Inc. now owns 16,283 shares of the company’s stock worth $199,000 after buying an additional 2,253 shares during the period. Hedge funds and other institutional investors own 75.58% of the company’s stock.

About Freshworks

Freshworks, Inc is a global provider of cloud-based customer engagement software designed to help businesses streamline customer support, sales, marketing, and IT service operations. The company’s integrated suite of solutions enables organizations of all sizes to deliver seamless experiences across multiple channels, including email, chat, phone, and social media. Freshworks’ platform is built on modern, user-friendly interfaces and offers native automation, AI-powered insights, and analytics to improve efficiency and customer satisfaction.

The company’s flagship product, Freshdesk, serves as a helpdesk solution for customer support teams, while Freshservice addresses IT service management needs.