Freshworks (NASDAQ:FRSH) Updates 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 (EPS) guidance of 0.550-0.570 for the period, compared to the consensus estimate of 0.690. The company issued revenue guidance of $952.0 million-$960.0 million, compared to the consensus revenue estimate of $945.1 million. Freshworks also updated its Q1 2026 guidance to 0.100-0.120 EPS.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on FRSH. Canaccord Genuity Group set a $14.00 price target on Freshworks in a report on Wednesday. Oppenheimer set a $15.00 price objective on shares of Freshworks in a research report on Wednesday. Piper Sandler decreased their price target on Freshworks from $12.00 to $10.00 and set a “neutral” rating for the company in a report on Wednesday. Wall Street Zen downgraded shares of Freshworks from a “strong-buy” rating to a “buy” rating in a research report on Saturday, December 20th. Finally, Wells Fargo & Company decreased their target price on shares of Freshworks from $13.00 to $10.00 and set an “equal weight” rating on the stock in a research report on Wednesday. Eight equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $15.29.

Freshworks Stock Down 15.9%

Shares of NASDAQ:FRSH traded down $1.39 during trading on Wednesday, reaching $7.35. The stock had a trading volume of 10,133,017 shares, compared to its average volume of 5,361,771. The business has a fifty day moving average price of $11.67 and a 200-day moving average price of $12.06. Freshworks has a fifty-two week low of $7.00 and a fifty-two week high of $18.77. The stock has a market cap of $2.07 billion, a P/E ratio of -74.36 and a beta of 0.89.

Freshworks (NASDAQ:FRSH) last announced its quarterly earnings data on Tuesday, February 10th. The company reported $0.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.03. The company had revenue of $222.74 million during 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 business’s quarterly revenue was up 14.5% compared to the same quarter last year. During the same period in the previous 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 analysts forecast that Freshworks will post -0.19 EPS for the current year.

Insider Buying and Selling at Freshworks

In related news, CAO Philippa Lawrence sold 5,846 shares of the company’s stock in a transaction on Tuesday, December 2nd. The shares were sold at an average price of $12.06, for a total transaction of $70,502.76. Following the completion of the sale, the chief accounting officer directly owned 392,711 shares of the company’s stock, valued at approximately $4,736,094.66. This represents a 1.47% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Mika Yamamoto sold 15,012 shares of the business’s stock in a transaction that occurred on Friday, December 5th. The stock was sold at an average price of $13.00, for a total value of $195,156.00. Following the transaction, the insider directly owned 490,350 shares in the company, valued at $6,374,550. This trade represents a 2.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 22,267 shares of company stock worth $282,301 in the last 90 days. Company insiders own 11.17% of the company’s stock.

Key Headlines Impacting Freshworks

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: Q4 results beat expectations — revenue $222.7M (≈+14% YoY) and non‑GAAP EPS/metrics showed improved margins and cash flow; management highlighted strong AI adoption and product momentum. GlobeNewswire Release
• Positive Sentiment: Company forecasted FY 2026 revenue above consensus (guidance $952M–$960M) and expects continued AI‑driven demand — a revenue beat that supports growth story. Reuters
• Positive Sentiment: Unusual options activity: traders bought ~4,648 call contracts (~95% above average), indicating short‑term bullish positioning that can amplify intraday moves. (internal report)
• Positive Sentiment: Some analysts remain constructive — Needham reaffirmed a Buy with a $15 PT and Canaccord reiterated Buy, leaving upside scenarios from optimism around AI/EX adoption. Canaccord / Needham coverage
• Neutral Sentiment: Management set a multi‑year ARR target (~$1.3B by 2028) tied to EX platform and AI initiatives — positive for long‑term thesis but not an immediate catalyst. Seeking Alpha
• Negative Sentiment: FY 2026 EPS guidance (non‑GAAP $0.55–$0.57) is materially below consensus (~$0.69), which likely drove the sell‑off despite the revenue beat — investors penalize lower forward profitability. GlobeNewswire Guidance
• Negative Sentiment: Multiple price‑target cuts from analysts today (e.g., JMP/Citizens cut to $16, Wells Fargo to $10, Cantor Fitzgerald to $12) reflect reduced near‑term expectations and likely contributed to downward pressure. Benzinga TickerReport TheFly

Hedge Funds Weigh In On Freshworks

Large investors have recently added to or reduced their stakes in the company. WINTON GROUP Ltd bought a new position in shares of Freshworks in the 4th quarter worth about $448,000. Vise Technologies Inc. boosted its position 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 acquiring an additional 2,253 shares during the period. Geode Capital Management LLC boosted its holdings in shares of Freshworks by 1.9% in the fourth quarter. Geode Capital Management LLC now owns 5,126,112 shares of the company’s stock valued at $62,805,000 after acquiring an additional 95,720 shares in the last quarter. CIBC Bancorp USA Inc. acquired a new position in shares of Freshworks during the 3rd quarter valued at $252,000. Finally, Danske Bank A S bought a new position in shares of Freshworks during the 3rd quarter valued at about $807,000. 75.58% of the stock is currently owned by institutional 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.