Five9 (NASDAQ:FIVN) Releases Earnings Results, Beats Estimates By $0.08 EPS

Key Points

• Beat estimates: Five9 reported Q1 EPS of $0.76, beating consensus by $0.08 on revenue of $305.3M (+9.2% YoY), and updated FY2026 guidance to $3.22–$3.30 EPS with Q2 guidance of $0.65–$0.69.
• AI momentum: 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%, though they cautioned AI revenue can be lumpy.
• Shareholder returns and efficiency: Management plans to complete the remaining $150M repurchase by end‑Q3, is initiating an accelerated repurchase and the board approved an additional $200M buyback, following prior efficiency steps that improved EBITDA margins by 470 bps.

Five9 (NASDAQ:FIVN - Get Free Report) announced its quarterly earnings data on Thursday. The software maker reported $0.76 EPS for the quarter, beating analysts' consensus estimates of $0.68 by $0.08, FiscalAI reports. Five9 had a net margin of 3.43% and a return on equity of 10.95%. The company had revenue of $305.32 million during the quarter, compared to the consensus estimate of $299.92 million. During the same quarter last year, the firm posted $0.62 EPS. The company's quarterly revenue was up 9.2% on a year-over-year basis. 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 Stock Performance

Shares of FIVN stock traded up $0.15 during midday trading on Thursday, hitting $17.20. 4,800,376 shares of the company were exchanged, compared to its average volume of 1,965,364. The firm has a market capitalization of $1.32 billion, a P/E ratio of 37.39, a PEG ratio of 0.81 and a beta of 1.35. The company has a debt-to-equity ratio of 0.94, a quick ratio of 4.51 and a current ratio of 4.51. The firm's 50 day moving average price is $16.15 and its two-hundred day moving average price is $18.58. Five9 has a 52 week low of $13.29 and a 52 week high of $30.38.

Analyst Ratings Changes

FIVN has been the subject of a number of analyst reports. Mizuho decreased their price objective on shares of Five9 from $35.00 to $28.00 and set an "outperform" rating for the company in a research report on Friday, February 20th. Piper Sandler downgraded shares of Five9 from an "overweight" rating to a "neutral" rating and decreased their price objective for the company from $26.00 to $21.00 in a research report on Monday, January 5th. Weiss Ratings reissued a "sell (d+)" rating on shares of Five9 in a research report on Friday, March 27th. Robert W. Baird decreased their price objective on shares of Five9 from $24.00 to $19.00 and set a "neutral" rating for the company in a research report on Monday, February 23rd. Finally, Cantor Fitzgerald decreased their price objective on shares of Five9 from $32.00 to $26.00 and set an "overweight" rating for the company in a research report on Friday, February 20th. Twelve equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Five9 presently has an average rating of "Moderate Buy" and an average price target of $26.88.

Institutional Trading of Five9

Several hedge funds and other institutional investors have recently modified their holdings of FIVN. Amundi boosted its holdings in shares of Five9 by 8.3% during the 1st quarter. Amundi now owns 40,291 shares of the software maker's stock worth $1,017,000 after buying an additional 3,079 shares during the period. Guggenheim Capital LLC boosted its holdings in shares of Five9 by 95.7% during the 2nd quarter. Guggenheim Capital LLC now owns 27,826 shares of the software maker's stock worth $737,000 after buying an additional 13,606 shares during the period. California Public Employees Retirement System boosted its holdings in shares of Five9 by 39.4% during the 2nd quarter. California Public Employees Retirement System now owns 121,700 shares of the software maker's stock worth $3,223,000 after buying an additional 34,375 shares during the period. Qube Research & Technologies Ltd raised its stake in 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 in the last quarter. Finally, The Manufacturers Life Insurance Company raised its stake in 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 in the last quarter. Institutional investors own 96.64% of the company's stock.

Five9 Company Profile

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.

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