Five9 (NASDAQ:FIVN) Releases Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Five9 (NASDAQ:FIVN) released its quarterly earnings data on Thursday. The software maker reported $0.76 EPS for the quarter, beating the consensus estimate of $0.69 by $0.07, FiscalAI reports. Five9 had a return on equity of 12.95% and a net margin of 4.87%.The company had revenue of $305.32 million for the quarter, compared to analysts’ expectations of $299.92 million. During the same period last year, the firm posted $0.62 earnings per share. Five9’s revenue was up 9.2% compared to the same quarter last year. 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

NASDAQ FIVN traded up $5.04 during trading on Friday, hitting $22.24. 15,286,116 shares of the stock traded hands, compared to its average volume of 2,077,350. The company has a market capitalization of $1.70 billion, a P/E ratio of 48.35, a price-to-earnings-growth ratio of 0.82 and a beta of 1.35. The firm has a 50-day simple moving average of $16.15 and a 200-day simple moving average of $18.58. 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 12-month low of $13.29 and a 12-month high of $30.38.

Hedge Funds Weigh In On Five9

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

Trending Headlines about Five9

Here are the key news stories impacting Five9 this week:

• Positive Sentiment: Q1 results beat on both EPS and revenue and management raised FY and Q2 outlook — the company reported about $0.76 EPS and $305.3M revenue (beats), issued FY 2026 EPS guidance well above consensus (3.22–3.30 vs. ~2.81) and Q2 revenue/EPS guidance in line-to-better than estimates. This is the primary driver of the rally. Business Wire: Q1 Results
• Positive Sentiment: Market coverage highlighted the beat-and-raise and linked it to Five9’s AI progress, amplifying momentum in premarket/trading headlines. Media reports specifically called out the stronger FY guidance as the catalyst for a big jump in the stock. Investing.com: Shares Surge
• Positive Sentiment: Analyst support followed the results: Needham reaffirmed a Buy with a $40 price target (much higher than the current price), and Barclays raised its target to $25 and moved to Overweight — both moves likely boosted buying interest. TickerReport: Needham TickerReport: Barclays
• Positive Sentiment: Broader SaaS narrative turned constructive for Five9 as outlets noted AI-driven results across peers (Atlassian, Twilio), supporting sector rotation back into high‑growth software names. Business Insider: SaaS/AI Coverage
• Neutral Sentiment: Full earnings write-ups and transcripts are available for investors who want detail on revenue mix, margins and guidance assumptions (useful for modeling but not new directional news). Seeking Alpha: Earnings Call Transcript
• Neutral Sentiment: Addendum coverage and summaries (Zacks, Yahoo) reiterate the beats and are helpful for quick data points; these do not add new catalysts beyond the press release and guidance. Zacks: Q1 Summary

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the company. Barclays increased their target price on Five9 from $22.00 to $25.00 and gave the company an “overweight” rating in a report on Friday. Mizuho decreased their price objective on Five9 from $35.00 to $28.00 and set an “outperform” rating on the stock in a research note on Friday, February 20th. Royal Bank Of Canada decreased their price objective on Five9 from $35.00 to $25.00 and set an “outperform” rating on the stock in a research note on Friday, February 20th. Zacks Research downgraded Five9 from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, February 3rd. Finally, Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Five9 in a research note on Friday, March 27th. Eleven equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Five9 has an average rating of “Moderate Buy” and a consensus price target of $26.33.

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.