Freshworks (NASDAQ:FRSH) Updates Q2 2026 Earnings Guidance

Freshworks (NASDAQ:FRSH) issued an update on its second quarter 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 0.130-0.130 for the period, compared to the consensus earnings per share estimate of 0.090. The company issued revenue guidance of $232.0 million-$235.0 million, compared to the consensus revenue estimate of $233.0 million. Freshworks also updated its FY 2026 guidance to 0.610-0.630 EPS.

Freshworks Price Performance

NASDAQ:FRSH traded down $0.44 during mid-day trading on Wednesday, reaching $8.75. 13,192,245 shares of the company’s stock traded hands, compared to its average volume of 7,073,952. Freshworks has a 12-month low of $6.79 and a 12-month high of $16.14. The firm has a market capitalization of $2.49 billion, a price-to-earnings ratio of 13.65 and a beta of 0.83. The company has a 50 day moving average price of $8.14 and a 200-day moving average price of $10.15.

Freshworks (NASDAQ:FRSH) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $0.11 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.11. Freshworks had a return on equity of 4.69% and a net margin of 21.90%.The company had revenue of $228.63 million for the quarter, compared to the consensus estimate of $223.64 million. During the same quarter in the previous year, the business earned $0.18 EPS. Freshworks’s revenue was up 16.5% compared to the same quarter last year. Freshworks has set its FY 2026 guidance at 0.610-0.630 EPS and its Q2 2026 guidance at 0.130-0.130 EPS. As a group, analysts forecast that Freshworks will post -0.1 EPS for the current year.

Analyst Ratings Changes

Several research firms recently issued reports on FRSH. Citizens Jmp lowered their price objective on Freshworks from $27.00 to $16.00 and set a “market outperform” rating on the stock in a research report on Wednesday, February 11th. Citigroup reissued an “outperform” rating on shares of Freshworks in a report on Wednesday, February 11th. Cantor Fitzgerald lowered their price target on Freshworks from $15.00 to $12.00 and set an “overweight” rating on the stock in a report on Wednesday, February 11th. Piper Sandler lowered their price target on Freshworks from $12.00 to $10.00 and set a “neutral” rating on the stock in a report on Wednesday, February 11th. Finally, Canaccord Genuity Group set a $14.00 price target on Freshworks in a report on Wednesday, February 11th. Six research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Freshworks currently has an average rating of “Hold” and an average target price of $12.45.

Insider Activity at Freshworks

In other news, insider Mika Yamamoto sold 32,577 shares of the company’s stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $8.45, for a total value of $275,275.65. Following the completion of the sale, the insider directly owned 1,127,723 shares in the company, valued at $9,529,259.35. This represents a 2.81% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. 8.54% of the stock is owned by company insiders.

Key Stories Impacting Freshworks

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: Company issued FY‑2026 and Q2 guidance well above Street expectations (FY EPS 0.610–0.630 vs. ~0.44 est; Q2 EPS 0.130 vs. ~0.09), suggesting stronger profitability and revenue outlook ahead. Freshworks Reports First Quarter 2026 Results
• Positive Sentiment: Q1 revenue beat consensus ($228.6M vs. ~$223.6M) and the company said it landed the two largest deals in its history (including its first >$1M ARR deal), supporting growth prospects. Freshworks Reports First Quarter 2026 Results
• Neutral Sentiment: Reported EPS of $0.11 matched estimates but declined from $0.18 year‑ago; the beat was on revenue rather than EPS, so market reaction balances top‑line momentum with margin/earnings softness. Freshworks Inc. (FRSH) Matches Q1 Earnings Estimates
• Neutral Sentiment: Earnings call/transcripts are available for deeper color on product adoption, AI initiatives and cost actions; management will host a Financial Analyst Session at Refresh 2026 on May 14 for further guidance detail. Freshworks Inc. (NASDAQ:FRSH) Q1 2026 Earnings Call Transcript Freshworks to Host Financial Analyst Session at Refresh 2026
• Negative Sentiment: Freshworks announced a workforce reduction of about 11% (~500 jobs) as it restructures amid AI-driven changes in the software industry; layoffs raise short‑term execution risk and signal cost cutting to boost margins. Freshworks to cut 11% jobs as AI reshapes software sector

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Quantinno Capital Management LP grew its position in shares of Freshworks by 62.2% during the second quarter. Quantinno Capital Management LP now owns 19,972 shares of the company’s stock valued at $298,000 after purchasing an additional 7,658 shares in the last quarter. PharVision Advisers LLC grew its position in shares of Freshworks by 66.7% during the third quarter. PharVision Advisers LLC now owns 23,135 shares of the company’s stock valued at $272,000 after purchasing an additional 9,253 shares in the last quarter. EP Wealth Advisors LLC bought a new position in shares of Freshworks in the 4th quarter valued at about $266,000. Lido Advisors LLC lifted its holdings in shares of Freshworks by 98.1% in the 3rd quarter. Lido Advisors LLC now owns 20,802 shares of the company’s stock valued at $245,000 after acquiring an additional 10,299 shares during the last quarter. Finally, Vise Technologies Inc. lifted its holdings in shares of Freshworks by 16.1% in the 4th quarter. Vise Technologies Inc. now owns 16,283 shares of the company’s stock valued at $199,000 after acquiring an additional 2,253 shares during the last quarter. Hedge funds and other institutional investors 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.