Freshworks (NASDAQ:FRSH) Issues FY 2026 Earnings Guidance

Freshworks (NASDAQ:FRSH) updated its FY 2026 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 0.550-0.570 for the period, compared to the consensus estimate of 0.690. The company issued revenue guidance of $952.0 million-$960.0 million, compared to the consensus revenue estimate of $945.1 million. Freshworks also updated its Q1 2026 guidance to 0.100-0.120 EPS.

Freshworks Trading Up 1.2%

Shares of FRSH traded up $0.10 during trading hours on Tuesday, reaching $8.73. The company had a trading volume of 13,008,625 shares, compared to its average volume of 5,204,842. Freshworks has a 12-month low of $8.45 and a 12-month high of $18.77. The firm has a 50 day simple moving average of $11.74 and a 200-day simple moving average of $12.10. The company has a market capitalization of $2.46 billion, a price-to-earnings ratio of -87.29 and a beta of 0.89.

Analysts Set New Price Targets

FRSH has been the subject of a number of research reports. Cantor Fitzgerald reiterated an “overweight” rating on shares of Freshworks in a research report on Tuesday, January 20th. Piper Sandler downgraded Freshworks from an “overweight” rating to a “neutral” rating and set a $12.00 price objective for the company. in a research note on Monday, February 2nd. Zacks Research cut Freshworks from a “strong-buy” rating to a “hold” rating in a report on Monday, January 12th. UBS Group reiterated a “buy” rating and set a $17.00 target price on shares of Freshworks in a research report on Friday, November 14th. Finally, Needham & Company LLC reissued a “buy” rating on shares of Freshworks in a report on Monday, December 15th. Six analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $18.54.

Insider Transactions at Freshworks

In related news, CAO Philippa Lawrence sold 5,846 shares of the 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 transaction, the chief accounting officer directly owned 392,711 shares of the company’s stock, valued at approximately $4,736,094.66. This trade represents a 1.47% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Mika Yamamoto sold 15,012 shares of the firm’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 completion of the transaction, the insider owned 490,350 shares in the company, valued at approximately $6,374,550. This trade represents a 2.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 22,267 shares of company stock valued at $282,301. Corporate insiders own 11.17% of the company’s stock.

Freshworks News Summary

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: Q4 results beat expectations — Freshworks reported $0.14 EPS vs. $0.11 consensus and revenue of $222.7M vs. $218.8M expected; management highlighted 16% revenue growth for 2025, improved GAAP operating income and strong cash flow. Read More.
• Positive Sentiment: Q1 2026 guidance was conservative-to-positive on near-term profitability — Freshworks guided Q1 non‑GAAP net income per share to $0.10–$0.12 and revenue to $222–$225M, above analysts’ revenue expectations, signaling sustained demand into the quarter. Read More.
• Positive Sentiment: Full-year revenue guide topped estimates — management expects FY2026 revenue of $952–$960M vs. consensus ~$945M, reflecting confidence in AI-driven product adoption and cross-sell (Freddy AI, EX/ESM expansion). Read More.
• Neutral Sentiment: Short-interest data in the feed is inconsistent/unclear (report shows 0 shares / NaN change) and appears to be a data glitch — no clear short-pressure signal from that entry.
• Negative Sentiment: FY2026 EPS guidance misses Street expectations — Freshworks lowered its FY non‑GAAP net income per share guide to $0.55–$0.57 vs. consensus ~$0.69, which may pressure valuation and analyst sentiment despite revenue upside. Read More.
• Negative Sentiment: Some dilution / share-count movement — weighted-average shares outstanding rose vs. prior periods (management cites share dynamics), which can weigh on per-share metrics even as revenue grows.

Hedge Funds Weigh In On Freshworks

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. EverSource Wealth Advisors LLC lifted its stake in Freshworks by 427.6% during the second quarter. EverSource Wealth Advisors LLC now owns 4,479 shares of the company’s stock worth $67,000 after purchasing an additional 3,630 shares during the last quarter. Shay Capital LLC acquired a new position in shares of Freshworks during the third quarter valued at $118,000. One68 Global Capital LLC acquired a new stake in shares of Freshworks in the 3rd quarter worth about $118,000. Mercer Global Advisors Inc. ADV bought a new stake in Freshworks in the 3rd quarter valued at about $122,000. Finally, Numerai GP LLC bought a new stake in Freshworks in the 3rd quarter valued at about $135,000. Hedge funds and other institutional investors own 75.58% of the company’s stock.

Freshworks Company Profile

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.