Five9 (NASDAQ:FIVN) Issues Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Five9 (NASDAQ:FIVN) announced its quarterly earnings data on Thursday. The software maker reported $0.70 EPS for the quarter, beating analysts’ consensus estimates of $0.68 by $0.02, FiscalAI reports. The firm had revenue of $312.44 million during the quarter, compared to the consensus estimate of $306.61 million. Five9 had a net margin of 4.87% and a return on equity of 12.66%. The firm’s revenue was up 10.3% compared to the same quarter last year. During the same quarter last year, the firm earned $0.76 earnings per share. Five9 updated its Q3 2026 guidance to 0.770-0.810 EPS and its FY 2026 guidance to 3.220-3.300 EPS.

Here are the key takeaways from Five9’s conference call:

• Q2 revenue was $312 million, up 10% year over year and above the high end of guidance. Subscription revenue grew 14%, while AI revenue accelerated 78% year over year.
• Five9 raised its full-year 2026 AI revenue growth outlook to at least 60%, from more than 40% previously. AI revenue reached approximately $39 million in Q2, or about 15% of subscription revenue.
• The company won a Fortune 100 financial-services customer in a contract worth approximately $100 million in total contract value, expected to ramp to roughly $25 million of subscription ARR. The deal was supported by Five9’s partnership with Google and is expected to contribute minimally in 2026 but grow meaningfully thereafter.
• Five9 maintained its full-year revenue midpoint at $1.266 billion, with second-half guidance relying primarily on converting existing backlog rather than new-logo wins. Management expects subscription dollar-based retention to improve from 107% in Q2 by approximately one percentage point in Q3.
• Adjusted gross margin declined to 61% from 63% a year ago, while adjusted EBITDA margin fell to 22% from 24%, partly due to expanded professional-services capacity for faster AI deployments. Leadership and organizational changes are also expected to create higher temporary expenses in 2026.

Five9 Trading Down 4.6%

NASDAQ FIVN opened at $28.25 on Friday. The company has a market cap of $2.16 billion, a P/E ratio of 42.80 and a beta of 1.42. Five9 has a 12 month low of $13.29 and a 12 month high of $30.21. The company has a debt-to-equity ratio of 0.89, a current ratio of 4.51 and a quick ratio of 4.51. The company has a 50-day moving average of $23.75 and a 200-day moving average of $19.79.

Insider Transactions at Five9

In related news, CAO Leena Mansharamani sold 2,556 shares of the stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $24.81, for a total value of $63,414.36. Following the transaction, the chief accounting officer directly owned 57,698 shares of the company’s stock, valued at approximately $1,431,487.38. This trade represents a 4.24% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Bryan M. Lee sold 1,511 shares of the business’s stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $24.25, for a total value of $36,641.75. Following the sale, the chief financial officer directly owned 309,951 shares of the company’s stock, valued at approximately $7,516,311.75. This trade represents a 0.49% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 85,820 shares of company stock valued at $2,014,057 in the last quarter. Insiders own 1.20% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Amundi boosted its holdings in Five9 by 8.3% in the 1st quarter. Amundi now owns 40,291 shares of the software maker’s stock worth $1,017,000 after acquiring an additional 3,079 shares during the period. Guggenheim Capital LLC grew its stake in shares of Five9 by 95.7% during the second quarter. Guggenheim Capital LLC now owns 27,826 shares of the software maker’s stock valued at $737,000 after acquiring an additional 13,606 shares in the last quarter. California Public Employees Retirement System lifted its stake in shares of Five9 by 39.4% in the second quarter. California Public Employees Retirement System now owns 121,700 shares of the software maker’s stock worth $3,223,000 after acquiring an additional 34,375 shares in the last quarter. Qube Research & Technologies Ltd grew its stake in Five9 by 52.7% during the 2nd quarter. Qube Research & Technologies Ltd now owns 31,182 shares of the software maker’s stock valued at $826,000 after purchasing an additional 10,755 shares in the last quarter. Finally, The Manufacturers Life Insurance Company increased its holdings in Five9 by 147.2% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 40,137 shares of the software maker’s stock worth $1,063,000 after purchasing an additional 23,901 shares during the last quarter. Institutional investors and hedge funds own 96.64% of the company’s stock.

Five9 News Summary

Here are the key news stories impacting Five9 this week:

• Positive Sentiment: Q2 results exceeded expectations. Five9 reported adjusted earnings of $0.70 per share versus the $0.68 consensus estimate, while revenue rose 10.3% year over year to $312.44 million, topping forecasts of $306.61 million. Five9 Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Full-year earnings guidance was raised above analyst expectations. Five9 guided to fiscal 2026 EPS of $3.22-$3.30, compared with consensus of $2.88. Third-quarter EPS guidance of $0.77-$0.81 also exceeded the $0.74 consensus, and projected revenue of $316 million-$322 million was above the $314.6 million estimate. Five9 Q2 Sales Beat Estimates and Guidance
• Neutral Sentiment: Management’s earnings call and updated forecasts will remain important catalysts. Investors are assessing Five9’s operating outlook, demand trends, and ability to convert revenue growth into profits as the company targets roughly $1.3 billion in fiscal 2026 revenue. Five9 Q2 2026 Earnings Call Transcript
• Negative Sentiment: Profit growth weakened year over year. Quarterly EPS fell from $0.76 to $0.70 despite the revenue increase. With shares trading at roughly 43 times earnings and near the upper end of their 52-week range, investors may have expected a larger beat or stronger revenue acceleration, contributing to the negative reaction. Five9 Quarterly Earnings Results

Analyst Ratings Changes

A number of research analysts have issued reports on the stock. Zacks Research cut shares of Five9 from a “strong-buy” rating to a “hold” rating in a report on Thursday, July 30th. Truist Financial set a $23.00 price target on shares of Five9 in a report on Wednesday, July 1st. Cantor Fitzgerald raised their price objective on shares of Five9 from $32.00 to $34.00 and gave the stock an “overweight” rating in a research note on Monday. Needham & Company LLC reaffirmed a “buy” rating and issued a $40.00 target price on shares of Five9 in a research note on Friday, May 1st. Finally, Rosenblatt Securities raised their price target on Five9 from $29.00 to $32.00 and gave the stock a “buy” rating in a research report on Friday. Ten research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $26.86.

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.