Freshworks (NASDAQ:FRSH) Releases FY 2026 Earnings Guidance

Freshworks (NASDAQ:FRSH) updated its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 0.660-0.680 for the period, compared to the consensus earnings per share 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 Freshworks stock traded up $0.31 during trading hours on Tuesday, reaching $12.08. The stock had a trading volume of 8,317,092 shares, compared to its average volume of 11,424,055. The stock’s 50 day moving average is $10.03 and its 200 day moving average is $9.18. Freshworks has a twelve month low of $6.79 and a twelve month high of $14.06. The firm has a market capitalization of $3.34 billion, a PE ratio of 19.48 and a beta of 0.86.

Freshworks (NASDAQ:FRSH) last posted its earnings results on Tuesday, August 4th. The company reported $0.17 EPS for the quarter, beating analysts’ consensus estimates of $0.13 by $0.04. Freshworks had a return on equity of 4.27% and a net margin of 20.69%.The firm had revenue of $237.38 million for the quarter, compared to analysts’ expectations of $233.62 million. Freshworks has set its FY 2026 guidance at 0.660-0.680 EPS and its Q3 2026 guidance at 0.180-0.180 EPS. As a group, sell-side analysts predict that Freshworks will post -0.02 earnings per share for the current year.

Analyst Ratings Changes

Several analysts have commented on FRSH shares. Zacks Research lowered Freshworks from a “strong-buy” rating to a “hold” rating in a report on Friday, July 10th. Morgan Stanley reduced their target price on Freshworks from $15.00 to $13.00 and set an “equal weight” rating for the company in a research note on Monday, May 11th. Weiss Ratings lowered Freshworks from a “sell (d+)” rating to a “sell (d)” rating in a research report on Thursday, May 7th. Citigroup reissued a “market outperform” rating on shares of Freshworks in a research note on Tuesday, June 2nd. Finally, Wall Street Zen cut shares of Freshworks from a “buy” rating to a “hold” rating in a research 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 issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $13.25.

Insiders Place Their Bets

In other news, CAO Philippa Lawrence sold 3,470 shares of the company’s stock in a transaction on Monday, July 6th. The shares were sold at an average price of $10.13, for a total transaction of $35,151.10. Following the completion of the sale, the chief accounting officer owned 456,144 shares of the company’s stock, valued at $4,620,738.72. This represents a 0.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Jennifer H. Taylor sold 6,618 shares of the business’s stock in a transaction dated 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 $654,306.12. The trade was a 9.55% decrease in their ownership of the stock. 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. Insiders have sold a total of 27,236 shares of company stock valued at $270,331 in the last 90 days. 8.54% of the stock is owned by insiders.

Hedge Funds Weigh In On Freshworks

A number of institutional investors have recently added to or reduced their stakes in FRSH. Summit Securities Group LLC acquired a new position in Freshworks during the fourth quarter worth $26,000. EverSource Wealth Advisors LLC boosted its position in shares of Freshworks by 427.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,479 shares of the company’s stock valued at $67,000 after acquiring an additional 3,630 shares during the last quarter. Shay Capital LLC purchased a new stake in shares of Freshworks in the third quarter valued at about $118,000. One68 Global Capital LLC purchased a new stake in shares of Freshworks in the third quarter valued at about $118,000. Finally, Heron Bay Capital Management purchased a new position in Freshworks during the fourth quarter worth about $126,000. Hedge funds and other institutional investors 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.