Five9 (NASDAQ:FIVN) Shares Gap Up After Analyst Upgrade

Key Points

• Shares gapped up after Barclays raised its price target to $25 and upgraded to "overweight," with the stock opening at $20.18 (from a $17.20 close) and trading up roughly 29.5% on the move.
• Q1 results beat expectations and management sharply raised FY‑2026 guidance, with investors citing the company's AI initiatives as a key catalyst for the rally.
• Analyst and institutional support is strong — consensus sentiment is a "Moderate Buy" with a $26.94 average price target, and roughly 96.6% of the shares are held by institutions.

Shares of Five9, Inc. (NASDAQ:FIVN - Get Free Report) gapped up prior to trading on Friday after Barclays raised their price target on the stock from $22.00 to $25.00. The stock had previously closed at $17.20, but opened at $20.18. Barclays currently has an overweight rating on the stock. Five9 shares last traded at $20.0480, with a volume of 2,963,110 shares changing hands.

A number of other research firms also recently weighed in on FIVN. Wall Street Zen raised Five9 from a "buy" rating to a "strong-buy" rating in a report on Monday, February 23rd. Royal Bank Of Canada dropped their target price on Five9 from $35.00 to $25.00 and set an "outperform" rating for the company in a report on Friday, February 20th. Mizuho cut their target price on Five9 from $35.00 to $28.00 and set an "outperform" rating for the company in a research report on Friday, February 20th. UBS Group reaffirmed a "buy" rating on shares of Five9 in a research note on Friday. Finally, Wells Fargo & Company dropped their price objective on Five9 from $22.00 to $20.00 and set an "equal weight" rating for the company in a research note on Friday, February 20th. Twelve analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $26.94.

Five9 News Summary

Here are the key news stories impacting Five9 this week:

• Positive Sentiment: Q1 results beat expectations — revenue $305.3M and EPS $0.76, both above consensus; revenue grew ~9% year-over-year, supporting the rally. MarketBeat Q1 results
• Positive Sentiment: Management raised FY 2026 guidance sharply to $3.22–3.30 EPS (well above prior consensus), signaling stronger forward profitability and giving investors confidence in the growth trajectory. BusinessWire Press Release
• Positive Sentiment: Analyst support added fuel — Barclays raised its price target to $25 and upgraded to “overweight,” while Needham reaffirmed a buy with a $40 target; both moves increase perceived upside and helped lift the stock. Barclays / TickerReport
• Positive Sentiment: Market commentary credits Five9’s AI initiatives for delivering the beats and lifting sentiment across SaaS names, attracting momentum buyers. Business Insider AI coverage
• Positive Sentiment: Independent earnings coverage highlights the guidance beat and Q1 outperformance as the proximate cause of the stock’s strength. Investing.com coverage
• Neutral Sentiment: Earnings details and management commentary are available in the Q1 earnings call transcript and slide deck for investors doing deeper due diligence. Seeking Alpha Transcript

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Amundi raised its position in Five9 by 8.3% in the 1st quarter. Amundi now owns 40,291 shares of the software maker's stock valued at $1,017,000 after purchasing an additional 3,079 shares during the last quarter. Guggenheim Capital LLC increased its stake in shares of Five9 by 95.7% in the second quarter. Guggenheim Capital LLC now owns 27,826 shares of the software maker's stock valued at $737,000 after buying an additional 13,606 shares in the last quarter. California Public Employees Retirement System increased its stake in shares of Five9 by 39.4% in the second quarter. California Public Employees Retirement System now owns 121,700 shares of the software maker's stock valued at $3,223,000 after buying an additional 34,375 shares in the last quarter. Qube Research & Technologies Ltd raised its holdings in shares of Five9 by 52.7% in the second quarter. Qube Research & Technologies Ltd now owns 31,182 shares of the software maker's stock valued at $826,000 after buying an additional 10,755 shares during the last quarter. Finally, The Manufacturers Life Insurance Company raised its holdings in shares of Five9 by 147.2% in the second quarter. The Manufacturers Life Insurance Company now owns 40,137 shares of the software maker's stock valued at $1,063,000 after buying an additional 23,901 shares during the last quarter. 96.64% of the stock is owned by institutional investors and hedge funds.

Five9 Trading Up 29.5%

The company's 50-day moving average is $16.15 and its 200-day moving average is $18.58. 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 has a market cap of $1.71 billion, a price-to-earnings ratio of 48.59, a P/E/G ratio of 0.81 and a beta of 1.35.

Five9 (NASDAQ:FIVN - Get Free Report) last posted its quarterly earnings data on Thursday, February 19th. The software maker reported $0.80 earnings per share for the quarter, beating the consensus estimate of $0.79 by $0.01. Five9 had a net margin of 3.43% and a return on equity of 10.95%. The firm had revenue of $300.28 million during the quarter, compared to analysts' expectations of $298.21 million. During the same quarter last year, the company posted $0.79 EPS. The company's quarterly revenue was up 7.8% compared to the same quarter last year. Five9 has set its Q1 2026 guidance at 0.100-0.170 EPS and its FY 2026 guidance at 0.860-0.950 EPS. On average, research analysts predict that Five9, Inc. will post 1.29 earnings per share for the current year.

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.

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