Freshworks (NASDAQ:FRSH) Price Target Cut to $16.00 by Analysts at Citizens Jmp

Freshworks (NASDAQ:FRSH) had its target price lowered by Citizens Jmp from $27.00 to $16.00 in a research note issued to investors on Wednesday,Benzinga reports. Citizens Jmp currently has a market outperform rating on the stock.

Several other analysts have also recently issued reports on FRSH. Cantor Fitzgerald decreased their price objective on Freshworks from $15.00 to $12.00 and set an “overweight” rating on the stock in a report on Wednesday. Needham & Company LLC restated a “buy” rating and issued a $15.00 price target on shares of Freshworks in a research report on Wednesday. Robert W. Baird set a $10.00 price objective on Freshworks in a research report on Wednesday. Canaccord Genuity Group set a $14.00 target price on shares of Freshworks in a research note on Wednesday. Finally, Wells Fargo & Company decreased their price target on Freshworks from $13.00 to $10.00 and set an “equal weight” rating for the company in a research note on Wednesday. Eight equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $14.92.

Freshworks Stock Up 0.3%

FRSH stock traded up $0.02 during midday trading on Wednesday, hitting $7.32. The company’s stock had a trading volume of 1,193,855 shares, compared to its average volume of 5,730,099. Freshworks has a 12 month low of $7.00 and a 12 month high of $18.17. The company has a 50 day moving average of $11.57 and a two-hundred day moving average of $12.02. The firm has a market capitalization of $2.06 billion, a price-to-earnings ratio of 11.49 and a beta of 0.89.

Freshworks (NASDAQ:FRSH) last issued its earnings results on Tuesday, February 10th. The company reported $0.14 earnings per share for the quarter, topping analysts’ consensus estimates of $0.11 by $0.03. The firm had revenue of $222.74 million during the quarter, compared to analyst estimates of $218.76 million. Freshworks had a net margin of 21.90% and a return on equity of 4.77%. Freshworks’s revenue for the quarter was up 14.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.14 earnings per share. Freshworks has set its Q1 2026 guidance at 0.100-0.120 EPS and its FY 2026 guidance at 0.550-0.570 EPS. On average, analysts anticipate that Freshworks will post -0.19 earnings per share for the current fiscal year.

Insider Transactions at Freshworks

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

Institutional Investors Weigh In On Freshworks

Large investors have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its holdings in shares of Freshworks by 3.5% in the 4th quarter. Vanguard Group Inc. now owns 27,240,469 shares of the company’s stock valued at $333,696,000 after buying an additional 922,549 shares during the period. Eminence Capital LP raised its position in Freshworks by 39.4% during the second quarter. Eminence Capital LP now owns 7,334,601 shares of the company’s stock valued at $109,359,000 after acquiring an additional 2,074,641 shares in the last quarter. Geode Capital Management LLC raised its position in Freshworks by 1.9% during 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. Wellington Management Group LLP lifted its holdings in Freshworks by 9.5% in the third quarter. Wellington Management Group LLP now owns 4,906,157 shares of the company’s stock valued at $57,745,000 after acquiring an additional 424,866 shares during the period. Finally, State Street Corp boosted its position in Freshworks by 2.1% in the 2nd quarter. State Street Corp now owns 4,850,487 shares of the company’s stock worth $72,321,000 after purchasing an additional 101,132 shares in the last quarter. 75.58% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Freshworks

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: Q4 results beat consensus: Freshworks reported $0.14 GAAP/non‑GAAP EPS, revenue $222.7M (+14% YoY), improved operating margins, record cash generation and ARR momentum — evidence of product/AI adoption that supports longer‑term growth. Freshworks Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Revenue outlook modestly beat or sits above some estimates: FY2026 revenue guide of $952M–$960M implies ~13.5%–14.5% growth, and management flagged strong AI-driven demand (Freddy AI, EX/CX expansion). Freshworks forecasts annual revenue above estimates
• Neutral Sentiment: Company reiterated strategic targets (management aims for higher ARR, AI/EX platform expansion and recent FireHydrant acquisition) that support the long‑term story but need execution. Freshworks targets $1.3B ARR by 2028
• Neutral Sentiment: Unusual options and trading flows: elevated call volume was reported intra‑day, suggesting some speculative or hedged bullish positioning even as price moved lower. (internal trading note)
• Negative Sentiment: FY2026 EPS guide below Street expectations: management guided non‑GAAP EPS $0.55–$0.57 vs. consensus ~$0.69 — investors focused on the EPS shortfall despite revenue guidance, which appears to be the main driver of the selloff. Freshworks Valuation Check After Earnings
• Negative Sentiment: Analyst price‑target reductions and mixed ratings: several firms trimmed targets (JMP/Citizens/Wells Fargo/Cantor) after the guide, increasing near‑term downside pressure even where ratings remain constructive. (internal items)
• Negative Sentiment: Market commentary highlights investor disappointment: multiple outlets note the stock is under pressure due to the guidance/valuation rework despite the operational beat. Why Freshworks stock is nosediving

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.