Five9's (FIVN) Buy Rating Reaffirmed at Needham & Company LLC

Key Points

• Needham & Company reaffirmed its Buy rating on Five9 with a $40 price target, implying roughly a 132.6% upside from the recent close.
• Operational beat and guidance: Five9 beat Q1 EPS and revenue estimates and raised FY‑2026 EPS guidance above Street expectations, with AI-related product progress cited as a key sentiment driver.
• Analyst mix and valuation context: The consensus is a "Moderate Buy" with an average price target of $26.88 amid several recent cuts, while the stock trades around $17.20, has a $1.32B market cap and ~96.6% institutional ownership.

Five9 (NASDAQ:FIVN - Get Free Report)'s stock had its "buy" rating reiterated by analysts at Needham & Company LLC in a research note issued to investors on Friday,Benzinga reports. They presently have a $40.00 price objective on the software maker's stock. Needham & Company LLC's price objective indicates a potential upside of 132.56% from the company's previous close.

Several other research firms have also recently issued reports on FIVN. Robert W. Baird lowered their price objective on Five9 from $24.00 to $19.00 and set a "neutral" rating for the company in a research report on Monday, February 23rd. Canaccord Genuity Group lowered their price objective on Five9 from $40.00 to $33.00 and set a "buy" rating for the company in a research report on Friday, February 20th. Truist Financial lowered their price objective on Five9 from $40.00 to $23.00 and set a "buy" rating for the company in a research report on Friday, February 20th. Wall Street Zen raised Five9 from a "buy" rating to a "strong-buy" rating in a research report on Monday, February 23rd. Finally, Wells Fargo & Company lowered their price objective on Five9 from $22.00 to $20.00 and set an "equal weight" rating for the company in a research report on Friday, February 20th. Twelve investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $26.88.

Five9 Price Performance

Shares of NASDAQ FIVN opened at $17.20 on Friday. The stock's 50-day moving average is $16.15 and its two-hundred day moving average is $18.58. The company has a debt-to-equity ratio of 0.94, a current ratio of 4.51 and a quick ratio of 4.51. Five9 has a 1-year low of $13.29 and a 1-year high of $30.38. The company has a market cap of $1.32 billion, a price-to-earnings ratio of 37.39, a price-to-earnings-growth ratio of 0.81 and a beta of 1.35.

Five9 (NASDAQ:FIVN - Get Free Report) last issued its quarterly earnings results on Thursday, February 19th. The software maker reported $0.80 earnings per share for the quarter, topping the consensus estimate of $0.79 by $0.01. The company had revenue of $300.28 million for the quarter, compared to the consensus estimate of $298.21 million. Five9 had a return on equity of 10.95% and a net margin of 3.43%.Five9's revenue was up 7.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.79 EPS. Five9 has set its Q1 2026 guidance at 0.100-0.170 EPS and its FY 2026 guidance at 0.860-0.950 EPS. Analysts forecast that Five9 will post 1.29 EPS for the current fiscal year.

Institutional Trading of Five9

A number of large investors have recently made changes to their positions in FIVN. Voss Capital LP boosted its position in shares of Five9 by 40.0% in the 3rd quarter. Voss Capital LP now owns 4,550,000 shares of the software maker's stock valued at $110,110,000 after purchasing an additional 1,300,000 shares during the period. Van Berkom & Associates Inc. boosted its position in shares of Five9 by 28.0% in the 4th quarter. Van Berkom & Associates Inc. now owns 3,596,380 shares of the software maker's stock valued at $72,107,000 after purchasing an additional 787,626 shares during the period. Anson Funds Management LP boosted its position in shares of Five9 by 98.5% in the 3rd quarter. Anson Funds Management LP now owns 1,534,272 shares of the software maker's stock valued at $37,129,000 after purchasing an additional 761,486 shares during the period. Vanguard Group Inc. boosted its position in shares of Five9 by 8.2% in the 4th quarter. Vanguard Group Inc. now owns 10,037,395 shares of the software maker's stock valued at $201,250,000 after purchasing an additional 759,237 shares during the period. Finally, Qube Research & Technologies Ltd boosted its position in shares of Five9 by 1,255.8% in the 3rd quarter. Qube Research & Technologies Ltd now owns 422,772 shares of the software maker's stock valued at $10,231,000 after purchasing an additional 391,590 shares during the period. 96.64% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Five9

Here are the key news stories impacting Five9 this week:

• Positive Sentiment: Q1 earnings and revenue beat consensus — Five9 reported $0.76 EPS (vs. $0.69 consensus) and $305.3M revenue, reflecting ~9% YoY revenue growth and margin improvement, evidence the business is stabilizing and executing. Five9 Q1 Earnings (MarketBeat)
• Positive Sentiment: Company raised FY‑2026 EPS guidance well above Street estimates — Five9 updated FY EPS view to a range meaningfully above prior consensus, signaling stronger expected profitability for the year. That upgrade is a primary driver of investor optimism. Five9 Announces First Quarter 2026 Financial Results (BusinessWire)
• Positive Sentiment: Positive industry narrative around AI is amplifying gains — Coverage noting that Five9’s AI-related product progress helped drive the beat has pushed sentiment for FIVN alongside other SaaS names, attracting momentum buyers. What SaaSpocalypse? Atlassian, Twilio, and Five9 stocks soar (Business Insider)
• Neutral Sentiment: Q2 guidance roughly in line — Five9 provided Q2 EPS guidance that straddles consensus and a revenue range close to Street estimates; this reduces uncertainty but isn’t a clear upside catalyst on its own. Five9 Q1 Earnings and Revenues Top Estimates (Zacks)

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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