Freshworks (NASDAQ:FRSH) Updates Q3 2026 Earnings Guidance

Key Points

• Freshworks raised its Q3 2026 EPS guidance to $0.18, above the $0.15 analyst consensus, while forecasting revenue of $244.5 million-$245.5 million, broadly in line with expectations.
• The company maintained FY 2026 EPS guidance of $0.66-$0.68. Its latest quarterly results also exceeded estimates, with EPS of $0.17 versus $0.13 expected and revenue of $237.38 million versus $233.62 million.
• Analyst sentiment remains mixed: Freshworks has an average “Hold” rating and a consensus price target of $13.25, while insiders sold 27,236 shares worth about $270,331 over the past 90 days.

Freshworks (NASDAQ:FRSH - Get Free Report) issued an update on its third quarter 2026 earnings guidance on Tuesday. The company provided earnings per share guidance of 0.180-0.180 for the period, compared to the consensus estimate of 0.150. The company issued revenue guidance of $244.5 million-$245.5 million, compared to the consensus revenue estimate of $244.9 million. Freshworks also updated its FY 2026 guidance to 0.660-0.680 EPS.

Freshworks Price Performance

FRSH traded up $0.31 on Tuesday, hitting $12.08. The company had a trading volume of 8,317,092 shares, compared to its average volume of 11,424,055. The stock has a market cap of $3.34 billion, a price-to-earnings ratio of 19.48 and a beta of 0.86. The company's fifty day moving average price is $10.03 and its 200 day moving average price is $9.18. Freshworks has a 1-year low of $6.79 and a 1-year high of $14.06.

Freshworks (NASDAQ:FRSH - Get Free Report) last released its quarterly earnings results 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 company had revenue of $237.38 million during the quarter, compared to analysts' expectations of $233.62 million. Freshworks had a net margin of 20.69% and a return on equity of 4.27%. Freshworks has set its FY 2026 guidance at 0.660-0.680 EPS and its Q3 2026 guidance at 0.180-0.180 EPS. On average, sell-side analysts forecast that Freshworks will post -0.02 EPS for the current year.

Analysts Set New Price Targets

FRSH has been the topic of several research reports. Citigroup reiterated a "market outperform" rating on shares of Freshworks in a research report on Tuesday, June 2nd. Weiss Ratings cut Freshworks from a "sell (d+)" rating to a "sell (d)" rating in a report on Thursday, May 7th. Guggenheim initiated coverage on shares of Freshworks in a research report on Wednesday, July 22nd. They set a "buy" rating and a $25.00 price target on the stock. Zacks Research lowered Freshworks from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 10th. Finally, Wall Street Zen cut Freshworks from a "buy" rating to a "hold" rating in a report on Saturday, May 9th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Freshworks presently has an average rating of "Hold" and a consensus target price of $13.25.

Insider Buying and Selling

In related news, Director Barry L. Padgett sold 6,618 shares of the company's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $10.49, for a total value of $69,422.82. Following the transaction, the director directly owned 47,270 shares in the company, valued at approximately $495,862.30. This represents a 12.28% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jennifer H. Taylor sold 6,618 shares of the stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $10.44, for a total transaction of $69,091.92. Following the transaction, the director owned 62,673 shares in the company, valued at approximately $654,306.12. The trade was a 9.55% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 27,236 shares of company stock valued at $270,331. Insiders own 8.54% of the company's stock.

Institutional Trading of Freshworks

A number of hedge funds have recently added to or reduced their stakes in the stock. Cibc World Markets Corp purchased a new position in shares of Freshworks in the fourth quarter worth about $163,000. Principal Securities Inc. lifted its stake in Freshworks by 174.8% in the fourth quarter. Principal Securities Inc. now owns 11,867 shares of the company's stock worth $145,000 after acquiring an additional 7,549 shares during the period. Vise Technologies Inc. lifted its position in shares of Freshworks by 16.1% in the 4th quarter. Vise Technologies Inc. now owns 16,283 shares of the company's stock worth $199,000 after purchasing an additional 2,253 shares during the period. Numerai GP LLC bought a new position in Freshworks in the third quarter worth about $135,000. Finally, Focus Partners Wealth purchased a new stake in Freshworks in the third quarter worth about $176,000. 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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