Vanguard Group Inc. Raises Stake in Freshworks Inc. $FRSH

Key Points

• Vanguard Group boosted its stake in Freshworks by 3.5% to 27,240,469 shares, representing about 9.66% ownership worth roughly $333.7 million; institutional investors collectively own ~75.6% of the company.
• Freshworks reported a Q1 operational beat with revenue of $228.6M (vs. $223.6M est.) and 16.5% YoY growth, while EPS was inline, and management unveiled a $400 million share buyback.
• The company is executing a restructuring that cuts about 500 roles (~11%) to lower operating expenses, and analysts remain mixed—MarketBeat’s consensus rating is a "Hold" with a $12.45 price target after several recent downgrades.

Vanguard Group Inc. boosted its position in Freshworks Inc. (NASDAQ:FRSH - Free Report) by 3.5% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 27,240,469 shares of the company's stock after buying an additional 922,549 shares during the quarter. Vanguard Group Inc. owned approximately 9.66% of Freshworks worth $333,696,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors have also bought and sold shares of the company. Wellington Management Group LLP boosted its stake in Freshworks by 9.5% in the third quarter. Wellington Management Group LLP now owns 4,906,157 shares of the company's stock worth $57,745,000 after buying an additional 424,866 shares in the last quarter. State Street Corp boosted its stake in shares of Freshworks by 2.1% during the second quarter. State Street Corp now owns 4,850,487 shares of the company's stock valued at $72,321,000 after purchasing an additional 101,132 shares during the period. Dimensional Fund Advisors LP boosted its stake in shares of Freshworks by 8.5% during the third quarter. Dimensional Fund Advisors LP now owns 3,316,920 shares of the company's stock valued at $39,052,000 after purchasing an additional 260,078 shares during the period. Qube Research & Technologies Ltd boosted its stake in shares of Freshworks by 132.6% during the third quarter. Qube Research & Technologies Ltd now owns 2,790,166 shares of the company's stock valued at $32,840,000 after purchasing an additional 1,590,384 shares during the period. Finally, Topline Capital Management LLC boosted its stake in shares of Freshworks by 43.0% during the third quarter. Topline Capital Management LLC now owns 2,765,000 shares of the company's stock valued at $32,544,000 after purchasing an additional 831,787 shares during the period. Hedge funds and other institutional investors own 75.58% of the company's stock.

Key Headlines Impacting Freshworks

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: Q1 operational beat and $400M buyback: Freshworks reported revenue above estimates and revenue growth year-over-year, with EPS roughly in line with consensus; management also unveiled a $400 million share buyback program, a sizable capital-return signal relative to its market cap that supports the stock. Freshworks (FRSH) Is Up 8.9% After Strong Q1 Beat And $400M Buyback Plan - What's Changed
• Neutral Sentiment: Restructuring / job cuts announced (about 500 roles / ~11%): the reduction should lower operating expenses and help margins over time, but it also signals cost management in response to industry shifts (AI-driven change) and could reflect near-term demand/efficiency pressures. Freshworks To Cut 500 Jobs Globally in Fresh Restructuring Push
• Neutral Sentiment: Investor access scheduled this week: CFO/COO Tyler Sloat will appear at the Needham TMC conference and Freshworks will host an analyst session at Refresh 2026 — opportunities for management to detail margin actions, guidance and buyback execution. Freshworks to Participate in the 21st Annual Needham Technology, Media & Consumer Conference Freshworks to Host Financial Analyst Session at Refresh 2026
• Neutral Sentiment: Transcripts and details available: earnings call transcripts and the results presentation confirm management’s commentary (EPS inline, revenue beat, updated guidance) for analysts to parse — useful for short‑term trading and modeling. Freshworks Inc. NASDAQ: FRSH Q1 2026 Earnings Call Transcript
• Negative Sentiment: Piper Sandler maintains a Hold: a mid‑tier analyst rating may limit immediate upside from fresh catalysts if other firms remain cautious; investors will watch upcoming commentary to see if sell‑side views shift. Freshworks (FRSH) Receives a Hold from Piper Sandler

Freshworks Stock Up 1.6%

Shares of Freshworks stock opened at $9.03 on Friday. The company has a market cap of $2.57 billion, a PE ratio of 14.56 and a beta of 0.83. The business has a 50 day moving average of $8.22 and a 200 day moving average of $10.12. Freshworks Inc. has a 52 week low of $6.79 and a 52 week high of $16.14.

Freshworks (NASDAQ:FRSH - Get Free Report) last announced its earnings results on Tuesday, May 5th. The company reported $0.11 EPS for the quarter, meeting analysts' consensus estimates of $0.11. The company had revenue of $228.63 million during the quarter, compared to the consensus estimate of $223.64 million. Freshworks had a return on equity of 4.27% and a net margin of 20.69%.The firm's revenue for the quarter was up 16.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.18 earnings per share. Freshworks has set its FY 2026 guidance at 0.610-0.630 EPS and its Q2 2026 guidance at 0.130-0.130 EPS. On average, research analysts anticipate that Freshworks Inc. will post -0.1 earnings per share for the current year.

Analyst Ratings Changes

A number of analysts have recently weighed in on the company. Citizens Jmp dropped their price objective on Freshworks from $27.00 to $16.00 and set a "market outperform" rating for the company in a research note on Wednesday, February 11th. Citigroup reissued an "outperform" rating on shares of Freshworks in a research note on Wednesday, February 11th. Robert W. Baird set a $10.00 price objective on Freshworks in a research note on Wednesday, February 11th. Piper Sandler dropped their price objective on Freshworks from $12.00 to $10.00 and set a "neutral" rating for the company in a research note on Wednesday, February 11th. Finally, Jefferies Financial Group lowered Freshworks from a "buy" rating to a "hold" rating and dropped their price objective for the company from $20.00 to $8.00 in a research note on Monday, February 23rd. Six equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $12.45.

Insider Transactions at Freshworks

In other Freshworks news, insider Mika Yamamoto sold 32,577 shares of the stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $8.45, for a total value of $275,275.65. Following the completion of the transaction, the insider owned 1,127,723 shares in the company, valued at approximately $9,529,259.35. This represents a 2.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 8.54% 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.

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