Freshworks (NASDAQ:FRSH) Updates Q1 2026 Earnings Guidance

Freshworks (NASDAQ:FRSH) updated its first quarter 2026 earnings guidance on Tuesday. The company provided EPS guidance of 0.100-0.120 for the period, compared to the consensus EPS estimate of 0.070. The company issued revenue guidance of $222.0 million-$225.0 million, compared to the consensus revenue estimate of $220.6 million. Freshworks also updated its FY 2026 guidance to 0.550-0.570 EPS.

Freshworks Stock Performance

Shares of NASDAQ:FRSH traded up $0.10 during midday trading on Tuesday, hitting $8.73. 13,008,625 shares of the company’s stock traded hands, compared to its average volume of 5,204,842. Freshworks has a twelve month low of $8.45 and a twelve month high of $18.77. The company has a market cap of $2.46 billion, a PE ratio of -87.29 and a beta of 0.89. The firm’s fifty day moving average price is $11.74 and its two-hundred day moving average price is $12.10.

Wall Street Analysts Forecast Growth

FRSH has been the subject of a number of analyst reports. Zacks Research cut shares of Freshworks from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 12th. Oppenheimer lowered their price objective on shares of Freshworks from $19.00 to $18.00 and set an “outperform” rating for the company in a research report on Thursday, January 22nd. Piper Sandler lowered Freshworks from an “overweight” rating to a “neutral” rating and set a $12.00 target price on the stock. in a research report on Monday, February 2nd. Canaccord Genuity Group cut their price target on Freshworks from $23.00 to $19.00 and set a “buy” rating on the stock in a report on Thursday, November 6th. Finally, Needham & Company LLC reissued a “buy” rating on shares of Freshworks in a report on Monday, December 15th. Six equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Freshworks currently has a consensus rating of “Hold” and an average price target of $18.54.

Insider Buying and Selling

In related news, CAO Philippa Lawrence sold 5,846 shares of the firm’s stock in a transaction that occurred on Tuesday, December 2nd. The shares were sold at an average price of $12.06, for a total value of $70,502.76. Following the transaction, the chief accounting officer owned 392,711 shares of the company’s stock, valued at approximately $4,736,094.66. This trade represents a 1.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Mika Yamamoto sold 15,012 shares of the stock in a transaction on Friday, December 5th. The stock was sold at an average price of $13.00, for a total value of $195,156.00. Following the completion of the sale, the insider owned 490,350 shares of the company’s stock, valued at $6,374,550. The trade was a 2.97% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 22,267 shares of company stock valued at $282,301. 11.17% of the stock is owned by corporate insiders.

Key Stories Impacting Freshworks

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: Q4 results beat expectations — Freshworks reported $0.14 EPS vs. $0.11 consensus and revenue of $222.7M vs. $218.8M expected; management highlighted 16% revenue growth for 2025, improved GAAP operating income and strong cash flow. Read More.
• Positive Sentiment: Q1 2026 guidance was conservative-to-positive on near-term profitability — Freshworks guided Q1 non?GAAP net income per share to $0.10–$0.12 and revenue to $222–$225M, above analysts’ revenue expectations, signaling sustained demand into the quarter. Read More.
• Positive Sentiment: Full-year revenue guide topped estimates — management expects FY2026 revenue of $952–$960M vs. consensus ~$945M, reflecting confidence in AI-driven product adoption and cross-sell (Freddy AI, EX/ESM expansion). Read More.
• Neutral Sentiment: Short-interest data in the feed is inconsistent/unclear (report shows 0 shares / NaN change) and appears to be a data glitch — no clear short-pressure signal from that entry.
• Negative Sentiment: FY2026 EPS guidance misses Street expectations — Freshworks lowered its FY non?GAAP net income per share guide to $0.55–$0.57 vs. consensus ~$0.69, which may pressure valuation and analyst sentiment despite revenue upside. Read More.
• Negative Sentiment: Some dilution / share-count movement — weighted-average shares outstanding rose vs. prior periods (management cites share dynamics), which can weigh on per-share metrics even as revenue grows.

Hedge Funds Weigh In On Freshworks

Large investors have recently made changes to their positions in the company. Royal Bank of Canada boosted its stake in shares of Freshworks by 120.8% in the first quarter. Royal Bank of Canada now owns 21,388 shares of the company’s stock worth $302,000 after acquiring an additional 11,703 shares during the last quarter. Amundi boosted its stake in Freshworks by 1.3% during the 1st quarter. Amundi now owns 80,074 shares of the company’s stock worth $1,049,000 after purchasing an additional 1,040 shares during the last quarter. Goldman Sachs Group Inc. grew its holdings in shares of Freshworks by 35.1% during the first quarter. Goldman Sachs Group Inc. now owns 2,225,056 shares of the company’s stock worth $31,396,000 after buying an additional 578,628 shares in the last quarter. Woodline Partners LP grew its holdings in shares of Freshworks by 13.5% during the first quarter. Woodline Partners LP now owns 21,569 shares of the company’s stock worth $304,000 after buying an additional 2,571 shares in the last quarter. Finally, Focus Partners Wealth raised its position in shares of Freshworks by 20.2% in the first quarter. Focus Partners Wealth now owns 12,399 shares of the company’s stock valued at $175,000 after buying an additional 2,086 shares during the last quarter. 75.58% of the stock is currently owned by institutional investors and hedge funds.

Freshworks Company Profile

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.