Freshworks (NASDAQ:FRSH) Updates Q1 2026 Earnings Guidance

Freshworks (NASDAQ:FRSH) updated its first quarter 2026 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 0.100-0.120 for the period, compared to the consensus estimate of 0.070. The company issued revenue guidance of $222.0 million-$225.0 million, compared to the consensus revenue estimate of $220.6 million. Freshworks also updated its FY 2026 guidance to 0.550-0.570 EPS.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on FRSH shares. BTIG Research started coverage on Freshworks in a report on Tuesday, December 16th. They set a “neutral” rating on the stock. Zacks Research lowered shares of Freshworks from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 12th. Robert W. Baird set a $10.00 price objective on shares of Freshworks in a research note on Wednesday. Canaccord Genuity Group set a $14.00 price objective on Freshworks in a research report on Wednesday. Finally, Wells Fargo & Company dropped their target price on Freshworks from $13.00 to $10.00 and set an “equal weight” rating for the company in a report on Wednesday. Eight analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Freshworks presently has an average rating of “Hold” and a consensus target price of $15.29.

Freshworks Trading Down 15.9%

Shares of NASDAQ:FRSH traded down $1.39 during trading on Wednesday, hitting $7.35. 10,133,017 shares of the company’s stock were exchanged, compared to its average volume of 5,361,771. The firm has a 50-day moving average price of $11.67 and a two-hundred day moving average price of $12.06. The firm has a market cap of $2.07 billion, a P/E ratio of -74.36 and a beta of 0.89. Freshworks has a 1-year low of $7.00 and a 1-year high of $18.77.

Freshworks (NASDAQ:FRSH) last announced its quarterly earnings results on Tuesday, February 10th. The company reported $0.14 earnings per share for the quarter, topping analysts’ consensus estimates of $0.11 by $0.03. The company had revenue of $222.74 million for the quarter, compared to analysts’ expectations of $218.76 million. Freshworks had a negative net margin of 3.65% and a negative return on equity of 0.37%. The business’s quarterly revenue was up 14.5% compared to the same quarter last year. During the same period last year, the firm posted $0.14 earnings per share. Freshworks has set its Q1 2026 guidance at 0.100-0.120 EPS and its FY 2026 guidance at 0.550-0.570 EPS. As a group, research analysts predict that Freshworks will post -0.19 EPS for the current year.

Insiders Place Their Bets

In other Freshworks news, CAO Philippa Lawrence sold 5,846 shares of the firm’s stock in a transaction on Tuesday, December 2nd. The stock was sold at an average price of $12.06, for a total transaction of $70,502.76. Following the completion of the sale, the chief accounting officer owned 392,711 shares of the company’s stock, valued at $4,736,094.66. This trade represents a 1.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Mika Yamamoto sold 15,012 shares of Freshworks stock in a transaction dated Friday, December 5th. The stock was sold at an average price of $13.00, for a total transaction of $195,156.00. Following the sale, the insider directly owned 490,350 shares of the company’s stock, valued at $6,374,550. The trade was a 2.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 22,267 shares of company stock worth $282,301. 11.17% of the stock is owned by corporate insiders.

Freshworks News Summary

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: Q4 results beat expectations — revenue $222.7M (≈+14% YoY) and non‑GAAP EPS/metrics showed improved margins and cash flow; management highlighted strong AI adoption and product momentum. GlobeNewswire Release
• Positive Sentiment: Company forecasted FY 2026 revenue above consensus (guidance $952M–$960M) and expects continued AI‑driven demand — a revenue beat that supports growth story. Reuters
• Positive Sentiment: Unusual options activity: traders bought ~4,648 call contracts (~95% above average), indicating short‑term bullish positioning that can amplify intraday moves. (internal report)
• Positive Sentiment: Some analysts remain constructive — Needham reaffirmed a Buy with a $15 PT and Canaccord reiterated Buy, leaving upside scenarios from optimism around AI/EX adoption. Canaccord / Needham coverage
• Neutral Sentiment: Management set a multi‑year ARR target (~$1.3B by 2028) tied to EX platform and AI initiatives — positive for long‑term thesis but not an immediate catalyst. Seeking Alpha
• Negative Sentiment: FY 2026 EPS guidance (non‑GAAP $0.55–$0.57) is materially below consensus (~$0.69), which likely drove the sell‑off despite the revenue beat — investors penalize lower forward profitability. GlobeNewswire Guidance
• Negative Sentiment: Multiple price‑target cuts from analysts today (e.g., JMP/Citizens cut to $16, Wells Fargo to $10, Cantor Fitzgerald to $12) reflect reduced near‑term expectations and likely contributed to downward pressure. Benzinga TickerReport TheFly

Institutional Investors Weigh In On Freshworks

Several institutional investors and hedge funds have recently bought and sold shares of the company. WINTON GROUP Ltd acquired a new stake in shares of Freshworks during the 4th quarter worth approximately $448,000. Vise Technologies Inc. grew its stake in shares of Freshworks by 16.1% in the fourth quarter. Vise Technologies Inc. now owns 16,283 shares of the company’s stock worth $199,000 after purchasing an additional 2,253 shares during the last quarter. Geode Capital Management LLC raised its position in shares of Freshworks by 1.9% during the fourth quarter. Geode Capital Management LLC now owns 5,126,112 shares of the company’s stock worth $62,805,000 after acquiring an additional 95,720 shares during the last quarter. CIBC Bancorp USA Inc. bought a new position in Freshworks during the 3rd quarter worth approximately $252,000. Finally, Danske Bank A S acquired a new position in Freshworks in the third quarter valued at $807,000. 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.