Freshworks (NASDAQ:FRSH) Issues Q3 2026 Earnings Guidance

Freshworks (NASDAQ:FRSH) updated its third quarter 2026 earnings guidance on Tuesday. The company provided earnings per share (EPS) 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

Shares of NASDAQ:FRSH traded up $0.07 during trading on Thursday, reaching $11.60. The stock had a trading volume of 3,441,161 shares, compared to its average volume of 11,359,343. The stock has a market capitalization of $3.21 billion, a PE ratio of 18.09 and a beta of 0.86. Freshworks has a 52 week low of $6.79 and a 52 week high of $14.06. The business’s 50-day moving average price is $10.15 and its 200 day moving average price is $9.18.

Freshworks (NASDAQ:FRSH) last released its quarterly earnings results on Tuesday, August 4th. The company reported $0.17 EPS for the quarter, topping analysts’ consensus estimates of $0.13 by $0.04. Freshworks had a return on equity of 5.42% and a net margin of 20.49%.The business had revenue of $237.38 million for the quarter, compared to analyst estimates of $233.62 million. During the same period in the prior year, the company earned $0.18 EPS. Freshworks’s revenue for the quarter was up 16.0% on a year-over-year basis. Freshworks has set its FY 2026 guidance at 0.660-0.680 EPS and its Q3 2026 guidance at 0.180-0.180 EPS. Analysts forecast that Freshworks will post -0.02 EPS for the current year.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on FRSH. Guggenheim initiated coverage on Freshworks in a report on Wednesday, July 22nd. They set a “buy” rating and a $25.00 target price on the stock. Morgan Stanley cut their price target on Freshworks from $15.00 to $13.00 and set an “equal weight” rating for the company in a report on Monday, May 11th. UBS Group upped their price target on shares of Freshworks from $11.00 to $14.00 and gave the stock a “buy” rating in a research report on Wednesday. Wall Street Zen lowered shares of Freshworks from a “buy” rating to a “hold” rating in a report on Saturday, May 9th. Finally, Weiss Ratings restated a “sell (d)” rating on shares of Freshworks in a research report on Tuesday. One investment 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 stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $14.17.

Insider Activity

In other news, Director Barry L. Padgett sold 6,618 shares of Freshworks stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $10.49, for a total value of $69,422.82. Following the completion of the sale, the director directly 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. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 value of $35,151.10. Following the transaction, the chief accounting officer directly owned 456,144 shares in the company, valued at $4,620,738.72. This trade represents a 0.75% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 27,236 shares of company stock valued at $270,331. Company insiders own 8.54% of the company’s stock.

Freshworks News Summary

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: FedRAMP progress expands the public-sector opportunity. Freshservice received “In Process” status for FedRAMP Class C (Moderate) certification and was added to the FedRAMP Marketplace. Full authorization could improve Freshworks’ ability to win contracts with U.S. federal agencies, while its partnership with Coalfire supports the compliance process. Freshworks Achieves FedRAMP In Process Designation
• Positive Sentiment: Q2 results exceeded expectations. Revenue increased 16% year over year to $237.4 million, topping the $233.6 million consensus estimate, while adjusted EPS of $0.17 exceeded expectations of $0.13. Freshworks also posted $3.2 million in GAAP net income, marking its first GAAP-profitable quarter of 2026. Freshworks Reports Record Second Quarter 2026 Results
• Positive Sentiment: Management raised its outlook. FY2026 EPS guidance was set at $0.66-$0.68, above the $0.50 consensus estimate, with revenue guidance of $963.5-$966.5 million. Third-quarter EPS guidance of $0.18 also exceeds the $0.15 consensus, reinforcing expectations for sustained profitability. Freshworks 2026 Revenue and Profitability Outlook
• Positive Sentiment: Growth in employee experience and AI remains a key catalyst. Employee-experience annual recurring revenue reportedly grew about 22%-23% year over year and now represents roughly 60% of ARR. Analysts also highlighted AI monetization, share buybacks, strong free-cash-flow potential, and an attractive valuation. Cantor Fitzgerald raised its price target to $15 from $12 and maintained an overweight rating. FRSH Q2 Earnings Call Highlights
• Neutral Sentiment: Analyst views are not uniformly bullish. Piper Sandler raised its target to $12 from $10 but kept a neutral rating, implying limited upside based on its assessment. This may temper enthusiasm following the earnings-driven rally. Analyst Price Target Changes

Institutional Investors Weigh In On Freshworks

Several hedge funds have recently bought and sold shares of FRSH. Balyasny Asset Management L.P. acquired a new stake in shares of Freshworks in the 4th quarter valued at about $31,967,000. Qube Research & Technologies Ltd increased its position in shares of Freshworks by 132.6% during the 3rd quarter. Qube Research & Technologies Ltd now owns 2,790,166 shares of the company’s stock worth $32,840,000 after purchasing an additional 1,590,384 shares during the last quarter. Squarepoint Ops LLC raised its position in Freshworks by 345.1% during the second quarter. Squarepoint Ops LLC now owns 1,835,798 shares of the company’s stock worth $27,372,000 after acquiring an additional 1,423,391 shares in the last quarter. Voloridge Investment Management LLC bought a new stake in shares of Freshworks in the 3rd quarter valued at about $15,656,000. Finally, AQR Capital Management LLC increased its holdings in shares of Freshworks by 213.8% during the 4th quarter. AQR Capital Management LLC now owns 1,895,737 shares of the company’s stock worth $23,223,000 after acquiring an additional 1,291,662 shares during the last quarter. 75.58% of the stock is currently owned by institutional investors and hedge funds.

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.