Five9 (NASDAQ:FIVN) Announces Earnings Results

Five9 (NASDAQ:FIVN) issued its earnings results on Thursday. The software maker reported $0.76 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.69 by $0.07, FiscalAI reports. Five9 had a net margin of 4.87% and a return on equity of 12.95%. The business had revenue of $305.32 million for the quarter, compared to analysts’ expectations of $299.92 million. During the same quarter in the previous year, the firm posted $0.62 EPS. The business’s revenue for the quarter was up 9.2% compared to the same quarter last year. Five9 updated its FY 2026 guidance to 3.220-3.300 EPS and its Q2 2026 guidance to 0.650-0.690 EPS.

Here are the key takeaways from Five9’s conference call:

• AI revenue accelerated 68% year‑over‑year to an annual run rate above $125M (≈13% of subscription revenue) and management expects full‑year AI growth to exceed 40%.
• Q1 results beat the high end of guidance with total revenue of $305M (+9% YoY) and subscription revenue up 13%, and the company modestly raised its 2026 revenue and non‑GAAP EPS midpoints.
• Management is driving operational and cultural changes—deep portfolio reviews, org redesign and a new Chief Marketing & Growth Officer—which follows prior efficiency work that delivered a 470 bps EBITDA margin improvement from 2024–2025.
• Capital allocation is shareholder‑friendly: the company will complete the remaining $150M repurchase by end of Q3, is initiating an accelerated share repurchase, and the board approved an additional $200M buyback authorization.
• AI revenue is lumpy and may fluctuate quarter‑to‑quarter due to varied deployment schedules and backlog timing; Q1 results also benefited from a one‑time vendor discount, and management reiterated substantial forward‑looking risks.

Five9 Price Performance

NASDAQ:FIVN traded up $5.04 during midday trading on Friday, hitting $22.24. The company had a trading volume of 15,286,116 shares, compared to its average volume of 2,077,350. Five9 has a 52-week low of $13.29 and a 52-week high of $30.38. The stock’s fifty day moving average price is $16.15 and its 200-day moving average price is $18.58. The company has a market capitalization of $1.70 billion, a PE ratio of 48.35, a P/E/G ratio of 0.82 and a beta of 1.35. The company has a quick ratio of 4.51, a current ratio of 4.51 and a debt-to-equity ratio of 0.94.

Key Stories Impacting Five9

Here are the key news stories impacting Five9 this week:

• Positive Sentiment: Q1 results beat on both EPS and revenue and management raised FY and Q2 outlook — the company reported about $0.76 EPS and $305.3M revenue (beats), issued FY 2026 EPS guidance well above consensus (3.22–3.30 vs. ~2.81) and Q2 revenue/EPS guidance in line-to-better than estimates. This is the primary driver of the rally. Business Wire: Q1 Results
• Positive Sentiment: Market coverage highlighted the beat-and-raise and linked it to Five9’s AI progress, amplifying momentum in premarket/trading headlines. Media reports specifically called out the stronger FY guidance as the catalyst for a big jump in the stock. Investing.com: Shares Surge
• Positive Sentiment: Analyst support followed the results: Needham reaffirmed a Buy with a $40 price target (much higher than the current price), and Barclays raised its target to $25 and moved to Overweight — both moves likely boosted buying interest. TickerReport: Needham TickerReport: Barclays
• Positive Sentiment: Broader SaaS narrative turned constructive for Five9 as outlets noted AI-driven results across peers (Atlassian, Twilio), supporting sector rotation back into high‑growth software names. Business Insider: SaaS/AI Coverage
• Neutral Sentiment: Full earnings write-ups and transcripts are available for investors who want detail on revenue mix, margins and guidance assumptions (useful for modeling but not new directional news). Seeking Alpha: Earnings Call Transcript
• Neutral Sentiment: Addendum coverage and summaries (Zacks, Yahoo) reiterate the beats and are helpful for quick data points; these do not add new catalysts beyond the press release and guidance. Zacks: Q1 Summary

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Five9 by 10.3% in the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,320,745 shares of the software maker’s stock worth $56,162,000 after acquiring an additional 217,227 shares in the last quarter. Geode Capital Management LLC grew its position in Five9 by 1.9% in the fourth quarter. Geode Capital Management LLC now owns 1,996,382 shares of the software maker’s stock worth $40,034,000 after acquiring an additional 37,261 shares in the last quarter. First Trust Advisors LP grew its position in Five9 by 29.4% in the fourth quarter. First Trust Advisors LP now owns 1,572,466 shares of the software maker’s stock worth $31,528,000 after acquiring an additional 357,321 shares in the last quarter. Anson Funds Management LP grew its position in Five9 by 0.3% in the fourth quarter. Anson Funds Management LP now owns 1,539,371 shares of the software maker’s stock worth $30,864,000 after acquiring an additional 5,099 shares in the last quarter. Finally, Ameriprise Financial Inc. grew its position in Five9 by 2.4% in the third quarter. Ameriprise Financial Inc. now owns 1,515,813 shares of the software maker’s stock worth $36,683,000 after acquiring an additional 35,946 shares in the last quarter. 96.64% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. Robert W. Baird lowered their target price on shares of Five9 from $24.00 to $19.00 and set a “neutral” rating on the stock in a report on Monday, February 23rd. Royal Bank Of Canada decreased their price target on shares of Five9 from $35.00 to $25.00 and set an “outperform” rating on the stock in a report on Friday, February 20th. Wall Street Zen raised shares of Five9 from a “buy” rating to a “strong-buy” rating in a report on Monday, February 23rd. Cantor Fitzgerald upped their price target on shares of Five9 from $22.00 to $24.00 and gave the stock an “overweight” rating in a report on Friday. Finally, Jefferies Financial Group reaffirmed a “hold” rating on shares of Five9 in a report on Friday. Eleven research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Five9 currently has an average rating of “Moderate Buy” and a consensus target price of $26.33.

Five9 Company Profile

Five9, Inc (NASDAQ: FIVN) is a leading provider of cloud-based contact center software designed to help organizations manage customer interactions across voice, email, chat, social media and other digital channels. Its platform offers features such as intelligent routing, analytics, workforce optimization and integrated customer relationship management (CRM) connectors. The company emphasizes AI-driven capabilities, including virtual agents and predictive dialing, to enhance both agent productivity and customer experience.

Founded in 2001 and headquartered in San Ramon, California, Five9 completed its initial public offering in February 2014.