Freshworks’ (FRSH) Buy Rating Reiterated at Needham & Company LLC

Freshworks (NASDAQ:FRSH)‘s stock had its “buy” rating reaffirmed by equities researchers at Needham & Company LLC in a research note issued to investors on Wednesday,Benzinga reports. They currently have a $15.00 target price on the stock. Needham & Company LLC’s price objective suggests a potential upside of 71.82% from the company’s previous close.

Several other equities analysts have also commented on FRSH. Canaccord Genuity Group set a $14.00 price objective on Freshworks in a research report on Wednesday. BTIG Research assumed coverage on Freshworks in a research note on Tuesday, December 16th. They issued a “neutral” rating for the company. Zacks Research cut Freshworks from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 12th. Piper Sandler reduced their price objective on Freshworks from $12.00 to $10.00 and set a “neutral” rating for the company in a report on Wednesday. Finally, Cantor Fitzgerald restated an “overweight” rating on shares of Freshworks in a research report on Tuesday, January 20th. Seven equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $17.23.

Freshworks Stock Performance

Shares of FRSH opened at $8.73 on Wednesday. Freshworks has a fifty-two week low of $8.45 and a fifty-two week high of $18.77. The firm has a market cap of $2.46 billion, a price-to-earnings ratio of -87.29 and a beta of 0.89. The firm has a 50 day moving average price of $11.67 and a 200-day moving average price of $12.06.

Freshworks (NASDAQ:FRSH) last issued its earnings results on Tuesday, February 10th. The company reported $0.14 EPS for the quarter, topping analysts’ consensus estimates of $0.11 by $0.03. The company had revenue of $222.74 million for the quarter, compared to analysts’ expectations of $218.76 million. Freshworks had a negative net margin of 3.65% and a negative return on equity of 0.37%. The firm’s revenue was up 14.5% compared to the same quarter last year. During the same quarter last year, the company earned $0.14 EPS. Freshworks has set its Q1 2026 guidance at 0.100-0.120 EPS and its FY 2026 guidance at 0.550-0.570 EPS. As a group, equities research analysts predict that Freshworks will post -0.19 earnings per share for the current year.

Insider Transactions at Freshworks

In related news, insider Mika Yamamoto sold 15,012 shares of the company’s stock in a transaction dated Friday, December 5th. The shares were sold at an average price of $13.00, for a total value of $195,156.00. Following the completion of the sale, the insider directly owned 490,350 shares of the company’s stock, valued at $6,374,550. This represents a 2.97% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Philippa Lawrence sold 5,846 shares of Freshworks stock in a transaction on Tuesday, December 2nd. The shares were sold at an average price of $12.06, for a total value of $70,502.76. Following the completion of the transaction, the chief accounting officer owned 392,711 shares in the company, valued at $4,736,094.66. This represents a 1.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 22,267 shares of company stock valued at $282,301 in the last quarter. 11.17% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. BNP PARIBAS ASSET MANAGEMENT Holding S.A. purchased a new stake in shares of Freshworks during the second quarter worth about $25,000. IFP Advisors Inc boosted its stake in shares of Freshworks by 954.9% in the fourth quarter. IFP Advisors Inc now owns 2,152 shares of the company’s stock worth $26,000 after acquiring an additional 1,948 shares during the last quarter. Rothschild Investment LLC boosted its position in Freshworks by 560.0% during the third quarter. Rothschild Investment LLC now owns 2,277 shares of the company’s stock worth $27,000 after acquiring an additional 1,932 shares during the last quarter. Meeder Asset Management Inc. acquired a new stake in Freshworks in the 3rd quarter valued at about $27,000. Finally, SBI Securities Co. Ltd. boosted its holdings 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 purchasing an additional 1,583 shares during the last quarter. 75.58% of the stock is currently owned by hedge funds and other institutional investors.

Freshworks News Roundup

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: Q4 beat on revenue and EPS; strong profitability and cash flow — Freshworks reported $222.7M revenue (+14% Y/Y) and $0.14 non‑GAAP EPS, topping estimates, with improved GAAP operating income, $62M operating cash flow and $56M adjusted free cash flow. Freshworks Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: AI adoption & ARR momentum — Management cited AI-powered product adoption (Freddy AI, Freshservice / Freshdesk enhancements) and EX business passing $500M ARR as drivers of expansion and customer retention. Freshworks Inc (FRSH) Q4 2025 Earnings Call Highlights: Record Revenue and Strategic AI Growth
• Positive Sentiment: Longer‑term ARR target — Management set an ambition for $1.3B ARR by 2028, signaling explicit long‑term growth targets tied to its EX platform and AI roadmap. Freshworks targets $1.3B ARR by 2028 as EX platform and AI drive sustained growth
• Positive Sentiment: Revenue guidance nudges above Street — The company guided FY‑2026 revenue to $952–960M (slightly above consensus), reiterating mid‑teens growth and backing the narrative of demand for its AI features. Freshworks forecasts annual revenue above estimates on strong AI-driven software demand
• Neutral Sentiment: Analyst support — Canaccord reiterated a Buy, providing some sell‑side reinforcement even as price targets vary widely. Canaccord Genuity Remains a Buy on Freshworks (FRSH)
• Negative Sentiment: FY‑2026 EPS guidance below consensus — Freshworks guided non‑GAAP EPS to $0.55–0.57 for FY‑2026 versus a ~0.69 consensus, and Q1 EPS guidance ($0.10–0.12) was mixed versus expectations; that miss prompted investor concern and near‑term selling pressure. Freshworks shares drop as earnings guidance disappoints investors

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.