Five9 (NASDAQ:FIVN) Announces Quarterly Earnings Results

Five9 (NASDAQ:FIVN) issued its quarterly earnings data on Thursday. The software maker reported $0.76 earnings per share for the quarter, topping the consensus estimate of $0.68 by $0.08, FiscalAI reports. Five9 had a net margin of 3.43% and a return on equity of 10.95%. The business had revenue of $305.32 million during the quarter, compared to analysts’ expectations of $299.92 million. During the same quarter in the previous year, the company earned $0.62 EPS. The business’s revenue was up 9.2% on a year-over-year basis. 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

Shares of NASDAQ:FIVN traded up $0.15 during midday trading on Thursday, hitting $17.20. The stock had a trading volume of 4,800,376 shares, compared to its average volume of 1,965,364. The company’s 50-day moving average price is $16.15 and its 200-day moving average price is $18.58. The company has a market capitalization of $1.32 billion, a P/E ratio of 37.39, a price-to-earnings-growth ratio of 0.81 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. Five9 has a fifty-two week low of $13.29 and a fifty-two week high of $30.38.

Hedge Funds Weigh In On Five9

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Invesco Ltd. raised its position in shares of Five9 by 45.7% in the 4th quarter. Invesco Ltd. now owns 167,947 shares of the software maker’s stock valued at $3,367,000 after buying an additional 52,672 shares in the last quarter. Mercer Global Advisors Inc. ADV acquired a new position in shares of Five9 in the 4th quarter valued at approximately $312,000. Mackenzie Financial Corp raised its position in shares of Five9 by 66.0% in the 4th quarter. Mackenzie Financial Corp now owns 60,553 shares of the software maker’s stock valued at $1,209,000 after buying an additional 24,076 shares in the last quarter. XTX Topco Ltd raised its position in shares of Five9 by 13.4% in the 4th quarter. XTX Topco Ltd now owns 56,549 shares of the software maker’s stock valued at $1,134,000 after buying an additional 6,662 shares in the last quarter. Finally, VARCOV Co. acquired a new position in shares of Five9 in the 4th quarter valued at approximately $300,000. 96.64% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several analysts have weighed in on the stock. Morgan Stanley dropped their price objective on shares of Five9 from $30.00 to $26.00 and set an “equal weight” rating for the company in a research note on Thursday, January 15th. Robert W. Baird dropped their price objective on shares of Five9 from $24.00 to $19.00 and set a “neutral” rating for the company in a research note on Monday, February 23rd. Zacks Research cut shares of Five9 from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, February 3rd. Canaccord Genuity Group dropped their price objective on shares of Five9 from $40.00 to $33.00 and set a “buy” rating for the company in a research note on Friday, February 20th. Finally, Royal Bank Of Canada dropped their price objective on shares of Five9 from $35.00 to $25.00 and set an “outperform” rating for the company in a research note on Friday, February 20th. Twelve analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $26.88.

About Five9

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.