Freshworks (NASDAQ:FRSH) Issues FY 2026 Earnings Guidance

Key Points

• Freshworks raised its FY 2026 outlook, projecting EPS of $0.66–$0.68 versus the $0.50 consensus estimate and revenue of $963.5–$966.5 million, slightly above the $961.2 million consensus.
• The company also forecast Q3 2026 EPS of $0.18 and recently reported quarterly EPS of $0.17, beating analyst expectations of $0.13, while revenue reached $237.38 million versus the $233.62 million estimate.
• Freshworks shares rose 2.6% to $12.08, but analysts maintained a consensus “Hold” rating with a $13.25 price target; insiders have sold 27,236 shares worth about $270,331 over the past three months.

Freshworks (NASDAQ:FRSH - Get Free Report) issued an update on its FY 2026 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 0.660-0.680 for the period, compared to the consensus EPS estimate of 0.500. The company issued revenue guidance of $963.5 million-$966.5 million, compared to the consensus revenue estimate of $961.2 million. Freshworks also updated its Q3 2026 guidance to 0.180-0.180 EPS.

Freshworks Trading Up 2.6%

Shares of NASDAQ:FRSH traded up $0.31 during trading on Tuesday, reaching $12.08. The company's stock had a trading volume of 8,317,092 shares, compared to its average volume of 11,424,055. The stock has a market capitalization of $3.34 billion, a PE ratio of 19.48 and a beta of 0.86. Freshworks has a 12 month low of $6.79 and a 12 month high of $14.06. The firm's 50 day simple moving average is $10.03 and its two-hundred day simple moving average is $9.18.

Freshworks (NASDAQ:FRSH - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $0.17 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.13 by $0.04. The business had revenue of $237.38 million for the quarter, compared to the consensus estimate of $233.62 million. Freshworks had a return on equity of 4.27% and a net margin of 20.69%.Freshworks has set its FY 2026 guidance at 0.660-0.680 EPS and its Q3 2026 guidance at 0.180-0.180 EPS. Research analysts anticipate that Freshworks will post -0.02 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on FRSH. Wall Street Zen downgraded Freshworks from a "buy" rating to a "hold" rating in a research report on Saturday, May 9th. Citigroup reissued a "market outperform" rating on shares of Freshworks in a research note on Tuesday, June 2nd. Weiss Ratings cut shares of Freshworks from a "sell (d+)" rating to a "sell (d)" rating in a research note on Thursday, May 7th. Zacks Research cut Freshworks from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 10th. Finally, Morgan Stanley reduced their price target on Freshworks from $15.00 to $13.00 and set an "equal weight" rating on the stock in a report on Monday, May 11th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $13.25.

Insider Activity

In related news, CAO Philippa Lawrence sold 10,530 shares of the firm's stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $9.18, for a total transaction of $96,665.40. Following the sale, the chief accounting officer owned 465,823 shares of the company's stock, valued at $4,276,255.14. This trade represents a 2.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Barry L. Padgett sold 6,618 shares of the business's stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $10.49, for a total transaction of $69,422.82. Following the transaction, the director owned 47,270 shares of the company's stock, valued at approximately $495,862.30. This trade represents a 12.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 27,236 shares of company stock worth $270,331. 8.54% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Freshworks

Several hedge funds and other institutional investors have recently bought and sold shares of FRSH. Wellington Management Group LLP grew its holdings in Freshworks by 9.2% during the fourth quarter. Wellington Management Group LLP now owns 5,359,784 shares of the company's stock worth $65,657,000 after acquiring an additional 453,627 shares during the period. Geode Capital Management LLC grew its stake in shares of Freshworks by 1.9% during the 4th quarter. Geode Capital Management LLC now owns 5,126,112 shares of the company's stock worth $62,805,000 after purchasing an additional 95,720 shares during the period. State Street Corp grew its stake in shares of Freshworks by 1.2% during the 4th quarter. State Street Corp now owns 4,904,684 shares of the company's stock worth $60,082,000 after purchasing an additional 56,935 shares during the period. Fuller & Thaler Asset Management Inc. increased its holdings in shares of Freshworks by 11.2% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 4,748,985 shares of the company's stock valued at $58,175,000 after purchasing an additional 478,473 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its holdings in shares of Freshworks by 8.5% during the 3rd 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 in the last quarter. Institutional investors and hedge funds 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.

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