Freshworks (NASDAQ:FRSH) Issues 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 0.660-0.680 for the period, compared to the consensus estimate of 0.500. The company issued revenue guidance of $963.5 million-$966.5 million, compared to the consensus revenue estimate of $961.2 million. Freshworks also updated its Q3 2026 guidance to 0.180-0.180 EPS.

Freshworks Stock Performance

FRSH traded down $0.35 during trading on Wednesday, reaching $11.69. 3,585,549 shares of the company’s stock were exchanged, compared to its average volume of 11,368,268. Freshworks has a fifty-two week low of $6.79 and a fifty-two week high of $14.06. The firm has a market capitalization of $3.23 billion, a PE ratio of 18.90 and a beta of 0.86. The company’s fifty day moving average price is $10.09 and its 200-day moving average price is $9.18.

Freshworks (NASDAQ:FRSH) last released its quarterly earnings data on Tuesday, August 4th. The company reported $0.17 EPS for the quarter, beating analysts’ consensus estimates of $0.13 by $0.04. The business had revenue of $237.38 million during the quarter, compared to the consensus estimate of $233.62 million. Freshworks had a return on equity of 4.27% and a net margin of 20.69%.The firm’s revenue was up 16.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.18 earnings per share. Freshworks has set its FY 2026 guidance at 0.660-0.680 EPS and its Q3 2026 guidance at 0.180-0.180 EPS. Research analysts forecast that Freshworks will post -0.02 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on FRSH. Citigroup reissued a “market outperform” rating on shares of Freshworks in a research report on Tuesday, June 2nd. UBS Group restated a “buy” rating and set a $14.00 target price on shares of Freshworks in a report on Wednesday. Robert W. Baird set a $13.00 price objective on shares of Freshworks in a research report on Wednesday. Morgan Stanley lowered their target price on Freshworks from $15.00 to $13.00 and set an “equal weight” rating for the company in a report on Monday, May 11th. Finally, Weiss Ratings cut Freshworks from a “sell (d+)” rating to a “sell (d)” rating in a research report on Thursday, May 7th. 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 company’s stock. According to MarketBeat, Freshworks currently has a consensus rating of “Hold” and a consensus target price of $14.17.

Insider Buying and Selling at Freshworks

In other Freshworks news, Director Jennifer H. Taylor sold 6,618 shares of the firm’s stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $10.44, for a total transaction of $69,091.92. Following the completion of the sale, the director directly owned 62,673 shares in the company, valued at $654,306.12. This trade represents a 9.55% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, 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 the 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 transaction, the chief accounting officer owned 465,823 shares in the company, valued at approximately $4,276,255.14. This trade represents a 2.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 27,236 shares of company stock valued at $270,331 in the last three months. 8.54% of the stock is currently owned by company insiders.

More Freshworks News

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

Several hedge funds and other institutional investors have recently added to or reduced their stakes in FRSH. Balyasny Asset Management L.P. bought a new position in shares of Freshworks in the fourth quarter worth $31,967,000. Qube Research & Technologies Ltd increased its stake in Freshworks by 132.6% in the third quarter. Qube Research & Technologies Ltd now owns 2,790,166 shares of the company’s stock valued at $32,840,000 after acquiring an additional 1,590,384 shares during the last quarter. Squarepoint Ops LLC lifted its stake in Freshworks by 345.1% during the second quarter. Squarepoint Ops LLC now owns 1,835,798 shares of the company’s stock worth $27,372,000 after purchasing an additional 1,423,391 shares during the last quarter. Voloridge Investment Management LLC acquired a new position in shares of Freshworks during the 3rd quarter worth $15,656,000. Finally, AQR Capital Management LLC grew its position in Freshworks by 213.8% in the fourth quarter. AQR Capital Management LLC now owns 1,895,737 shares of the company’s stock valued at $23,223,000 after acquiring an additional 1,291,662 shares during the last quarter. 75.58% of the stock is owned by institutional investors and hedge funds.

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.