Freshworks (NASDAQ:FRSH) Shares Gap Down – Should You Sell?

Freshworks Inc. (NASDAQ:FRSH)’s share price gapped down prior to trading on Wednesday . The stock had previously closed at $9.19, but opened at $7.61. Freshworks shares last traded at $8.8520, with a volume of 2,970,639 shares changing hands.

More Freshworks News

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: Q1 revenue topped estimates and the company highlighted two of the largest deals in its history, including its first $1M+ ARR contract — supporting topline momentum and deal quality. Freshworks Reports First Quarter 2026 Results
• Positive Sentiment: Company raised guidance materially: FY2026 EPS guide (0.61–0.63) and Q2 EPS guide (0.13) were above street consensus, and full‑year revenue guidance sits slightly above estimates — a constructive signal for forward profitability. Freshworks Reports First Quarter 2026 Results
• Neutral Sentiment: Earnings were inline with expectations: GAAP/non‑GAAP EPS of $0.11 met consensus while revenue of $228.6M beat estimates — steady execution but not a blowout. Transcripts of the call are available for further color on product adoption and margin drivers. Q1 2026 Earnings Call Transcript
• Neutral Sentiment: The company will host a Financial Analyst Session at its Refresh 2026 event (May 14) — an opportunity for management to expand on guidance assumptions and AI strategy, which could influence near‑term sentiment. Analyst Session Announcement
• Negative Sentiment: Freshworks announced a workforce reduction of about 11% (~500 roles) as it restructures amid an AI-driven industry shift — a near‑term negative catalyst that can spook investors concerned about demand trends or execution risk even if it improves margins longer term. Reuters: Freshworks to cut 11% of jobs

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on FRSH shares. Citigroup reaffirmed an “outperform” rating on shares of Freshworks in a research note on Wednesday, February 11th. UBS Group set a $11.00 price objective on Freshworks in a research note on Wednesday, February 11th. Robert W. Baird set a $10.00 price objective on Freshworks in a research note on Wednesday, February 11th. Needham & Company LLC reaffirmed a “buy” rating and issued a $15.00 price objective on shares of Freshworks in a research note on Wednesday, February 11th. Finally, Wall Street Zen raised Freshworks from a “hold” rating to a “buy” rating in a research note on Monday, April 6th. Six analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $12.45.

Freshworks Trading Down 3.8%

The firm has a market cap of $2.51 billion, a price-to-earnings ratio of 13.82 and a beta of 0.83. The business’s 50-day simple moving average is $8.14 and its two-hundred day simple moving average is $10.15.

Freshworks (NASDAQ:FRSH) last released its earnings results on Tuesday, May 5th. The company reported $0.11 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.11. The business had revenue of $228.63 million during the quarter, compared to the consensus estimate of $223.64 million. Freshworks had a net margin of 21.90% and a return on equity of 4.69%. The company’s revenue for the quarter was up 16.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.18 EPS. Freshworks has set its FY 2026 guidance at 0.610-0.630 EPS and its Q2 2026 guidance at 0.130-0.130 EPS. On average, analysts forecast that Freshworks Inc. will post -0.1 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Freshworks news, insider Mika Yamamoto sold 32,577 shares of the stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $8.45, for a total transaction of $275,275.65. Following the completion of the sale, the insider owned 1,127,723 shares of the company’s stock, valued at approximately $9,529,259.35. This represents a 2.81% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 8.54% of the company’s stock.

Institutional Trading of Freshworks

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. IFP Advisors Inc increased its position in Freshworks by 954.9% during the 4th quarter. IFP Advisors Inc now owns 2,152 shares of the company’s stock valued at $26,000 after purchasing an additional 1,948 shares during the period. Summit Securities Group LLC acquired a new stake in shares of Freshworks during the 4th quarter worth approximately $26,000. Meeder Asset Management Inc. acquired a new stake in shares of Freshworks during the 3rd quarter worth approximately $27,000. Rothschild Investment LLC grew its position in shares of Freshworks by 560.0% during the 3rd quarter. Rothschild Investment LLC now owns 2,277 shares of the company’s stock worth $27,000 after buying an additional 1,932 shares during the period. Finally, SBI Securities Co. Ltd. grew its position in shares of Freshworks by 136.2% during the 3rd quarter. SBI Securities Co. Ltd. now owns 2,745 shares of the company’s stock worth $32,000 after buying an additional 1,583 shares during the period. Institutional investors and hedge funds own 75.58% of the company’s stock.

Freshworks Company Profile

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.