Five9 (NASDAQ:FIVN) Announces Earnings Results, Beats Expectations By $0.02 EPS

Five9 (NASDAQ:FIVN) released its quarterly earnings results on Thursday. The software maker reported $0.70 earnings per share for the quarter, topping the consensus estimate of $0.68 by $0.02, FiscalAI reports. Five9 had a net margin of 4.87% and a return on equity of 12.66%. The firm had revenue of $312.44 million for the quarter, compared to analysts’ expectations of $306.61 million. Five9 updated its Q3 2026 guidance to 0.770-0.810 EPS and its FY 2026 guidance to 3.220-3.300 EPS.

Here are the key takeaways from Five9’s conference call:

• Q2 revenue was $312 million, up 10% year over year and above the high end of guidance. Subscription revenue grew 14%, while AI revenue accelerated 78% year over year.
• Five9 raised its full-year 2026 AI revenue growth outlook to at least 60%, from more than 40% previously. AI revenue reached approximately $39 million in Q2, or about 15% of subscription revenue.
• The company won a Fortune 100 financial-services customer in a contract worth approximately $100 million in total contract value, expected to ramp to roughly $25 million of subscription ARR. The deal was supported by Five9’s partnership with Google and is expected to contribute minimally in 2026 but grow meaningfully thereafter.
• Five9 maintained its full-year revenue midpoint at $1.266 billion, with second-half guidance relying primarily on converting existing backlog rather than new-logo wins. Management expects subscription dollar-based retention to improve from 107% in Q2 by approximately one percentage point in Q3.
• Adjusted gross margin declined to 61% from 63% a year ago, while adjusted EBITDA margin fell to 22% from 24%, partly due to expanded professional-services capacity for faster AI deployments. Leadership and organizational changes are also expected to create higher temporary expenses in 2026.

Five9 Stock Down 4.6%

Five9 stock traded down $1.35 during trading hours on Thursday, hitting $28.25. The stock had a trading volume of 3,477,458 shares, compared to its average volume of 2,886,866. Five9 has a 12-month low of $13.29 and a 12-month high of $30.21. The stock has a market capitalization of $2.16 billion, a P/E ratio of 42.80 and a beta of 1.42. The stock’s 50-day moving average price is $23.64 and its 200-day moving average price is $19.71. The company has a quick ratio of 4.51, a current ratio of 4.51 and a debt-to-equity ratio of 0.89.

Wall Street Analyst Weigh In

FIVN has been the topic of several research analyst reports. DA Davidson set a $22.00 price objective on shares of Five9 in a research report on Monday. Piper Sandler reiterated a “neutral” rating and issued a $24.00 price objective (up from $21.00) on shares of Five9 in a report on Friday, May 1st. Cantor Fitzgerald reiterated an “overweight” rating on shares of Five9 in a report on Monday. Barclays upped their price target on Five9 from $22.00 to $25.00 and gave the company an “overweight” rating in a research report on Friday, May 1st. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $40.00 target price on shares of Five9 in a research report on Friday, May 1st. Ten research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $25.93.

Insider Transactions at Five9

In other news, insider Tiffany N. Meriweather sold 21,320 shares of the company’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $20.98, for a total transaction of $447,293.60. Following the transaction, the insider directly owned 281,298 shares of the company’s stock, valued at $5,901,632.04. This represents a 7.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, President Andy Dignan sold 8,203 shares of Five9 stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $24.76, for a total transaction of $203,106.28. Following the completion of the sale, the president owned 278,760 shares of the company’s stock, valued at $6,902,097.60. This represents a 2.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. Over the last ninety days, insiders have sold 85,820 shares of company stock valued at $2,014,057. Insiders own 1.20% of the company’s stock.

Institutional Trading of Five9

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Invesco Ltd. increased its holdings in shares of Five9 by 45.7% in the 4th quarter. Invesco Ltd. now owns 167,947 shares of the software maker’s stock worth $3,367,000 after buying an additional 52,672 shares during the last quarter. Mercer Global Advisors Inc. ADV purchased a new position in Five9 during the 4th quarter valued at $312,000. Mackenzie Financial Corp increased its stake in Five9 by 66.0% in the 4th quarter. Mackenzie Financial Corp now owns 60,553 shares of the software maker’s stock worth $1,209,000 after buying an additional 24,076 shares during the period. XTX Topco Ltd raised its stake in shares of Five9 by 13.4% during the fourth quarter. XTX Topco Ltd now owns 56,549 shares of the software maker’s stock valued at $1,134,000 after acquiring an additional 6,662 shares in the last quarter. Finally, VARCOV Co. bought a new stake in Five9 during the 4th quarter valued at $300,000. 96.64% of the stock is owned by hedge funds and other institutional investors.

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.