Freshworks (NASDAQ:FRSH) Releases Q3 2026 Earnings Guidance

Freshworks (NASDAQ:FRSH) updated its third quarter 2026 earnings guidance on Tuesday morning. The company provided EPS guidance of 0.180-0.180 for the period, compared to the consensus EPS estimate of 0.150. The company issued revenue guidance of $244.5 million-$245.5 million, compared to the consensus revenue estimate of $244.9 million. Freshworks also updated its FY 2026 guidance to 0.660-0.680 EPS.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on FRSH shares. Wall Street Zen cut shares of Freshworks from a “buy” rating to a “hold” rating in a research note on Saturday, May 9th. UBS Group reissued a “buy” rating and issued a $14.00 price target on shares of Freshworks in a report on Wednesday. Zacks Research cut shares of Freshworks from a “strong-buy” rating to a “hold” rating in a research note on Friday, July 10th. Weiss Ratings lowered Freshworks from a “sell (d+)” rating to a “sell (d)” rating in a research note on Thursday, May 7th. Finally, Guggenheim began coverage on shares of Freshworks in a report on Wednesday, July 22nd. They set a “buy” rating and a $25.00 target price for the company. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $14.17.

Freshworks Stock Performance

Shares of FRSH traded down $0.34 during trading hours on Wednesday, hitting $11.70. The stock had a trading volume of 3,725,246 shares, compared to its average volume of 11,370,483. The firm has a market cap of $3.24 billion, a P/E ratio of 18.88 and a beta of 0.86. Freshworks has a 12-month low of $6.79 and a 12-month high of $14.06. The company’s fifty day simple moving average is $10.09 and its 200 day simple moving average is $9.18.

Freshworks (NASDAQ:FRSH) last posted its earnings results on Tuesday, August 4th. The company reported $0.17 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.13 by $0.04. Freshworks had a net margin of 20.69% and a return on equity of 4.27%. The firm had revenue of $237.38 million during the quarter, compared to the consensus estimate of $233.62 million. During the same quarter in the prior year, the company earned $0.18 EPS. The company’s revenue was up 16.0% on a year-over-year basis. 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, sell-side analysts predict that Freshworks will post -0.02 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Barry L. Padgett sold 6,618 shares of the firm’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $10.49, for a total transaction of $69,422.82. Following the completion of the sale, the director directly owned 47,270 shares in the company, valued at $495,862.30. This trade represents a 12.28% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Philippa Lawrence sold 10,530 shares of Freshworks stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $9.18, for a total value of $96,665.40. Following the sale, the chief accounting officer owned 465,823 shares in the company, valued at $4,276,255.14. This represents a 2.21% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 27,236 shares of company stock worth $270,331 in the last 90 days. 8.54% of the stock is owned by company insiders.

Key Headlines Impacting Freshworks

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: Q2 results exceeded expectations: Freshworks reported adjusted earnings of $0.17 per share versus the $0.13 consensus estimate and revenue of $237.4 million, above expectations of $233.6 million. Revenue increased 16% year over year, while GAAP net income reached $3.2 million. Freshworks Reports Record Second Quarter 2026 Results
• Positive Sentiment: Raised full-year guidance: Freshworks expects 2026 revenue of $963.5 million to $966.5 million, above the $961.2 million analyst consensus, and adjusted EPS of $0.66 to $0.68 versus the prior consensus of $0.50. Third-quarter EPS guidance of $0.18 also exceeded the $0.15 estimate. Freshworks 2026 Revenue and Profitability Outlook
• Positive Sentiment: AI and employee-experience growth are key themes: Management highlighted increasing adoption of artificial-intelligence products and continued expansion in employee-experience software. Profitability improvements and potential share buybacks further support the investment case. FRSH Q2 Earnings Call Highlights
• Positive Sentiment: Analyst support improved: Cantor Fitzgerald raised its price target from $12 to $15 and assigned an “overweight” rating, implying meaningful upside from recent trading levels. Cantor Fitzgerald Price Target Update
• Neutral Sentiment: Piper Sandler increased its price target from $10 to $12 but maintained a “neutral” rating, indicating that valuation and execution concerns may limit enthusiasm despite the improved outlook. Piper Sandler Price Target Update

Hedge Funds Weigh In On Freshworks

Hedge funds have recently added to or reduced their stakes in the business. Summit Securities Group LLC acquired a new position in shares of Freshworks during the fourth quarter valued at $26,000. EverSource Wealth Advisors LLC raised its stake in shares of Freshworks by 427.6% during the second quarter. EverSource Wealth Advisors LLC now owns 4,479 shares of the company’s stock valued at $67,000 after purchasing an additional 3,630 shares in the last quarter. Shay Capital LLC bought a new position in Freshworks in the 3rd quarter valued at about $118,000. One68 Global Capital LLC bought a new position in Freshworks during the third quarter valued at about $118,000. Finally, Mercer Global Advisors Inc. ADV bought a new position in shares of Freshworks during the 3rd quarter valued at about $122,000. Institutional investors and hedge funds 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.