Five9 (NASDAQ:FIVN) Posts Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Five9 (NASDAQ:FIVN) released its quarterly earnings results on Thursday. The software maker reported $0.80 earnings per share for the quarter, beating analysts’ consensus estimates of $0.79 by $0.01, Briefing.com reports. Five9 had a net margin of 3.43% and a return on equity of 11.21%. The company had revenue of $300.28 million for the quarter, compared to analyst estimates of $298.21 million. During the same period last year, the firm earned $0.79 earnings per share. The firm’s revenue was up 7.8% on a year-over-year basis. Five9 updated its Q1 2026 guidance to 0.100-0.170 EPS and its FY 2026 guidance to 0.860-0.950 EPS.

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

• Five9 finished strong with Q4 revenue of $300 million (8% YoY) and full?year 2025 revenue of $1.15 billion, while adjusted EBITDA margin hit a record 26% and free cash flow margin reached 22%, with positive GAAP and non?GAAP EPS for the year.
• Enterprise AI momentum is accelerating—enterprise AI ARR surpassed $100 million, enterprise AI bookings more than doubled YoY in Q4, and AI revenue growth accelerated to ~50% YoY, with AI positioned as the fastest?growing, consumption?based part of the portfolio.
• Management initiated 2026 guidance at a midpoint of $1.254 billion revenue and raised non?GAAP EPS guidance to a $3.18 midpoint (GAAP EPS midpoint $0.91), while returning capital via a $50 million accelerated buyback and $100 million remaining authorization.
• Near?term headwinds remain—growth is still moderate (Q4 +8%, FY +10%) and the revenue profile is back?loaded with a flat Q1 guide; telecom usage weakness and professional services compressed adjusted gross margin slightly and LTM dollar?based retention slipped to 105%, exposing sensitivity to seasonality and macro risks.

Five9 Stock Performance

NASDAQ FIVN opened at $19.32 on Friday. The firm has a market cap of $1.51 billion, a P/E ratio of 42.00, a price-to-earnings-growth ratio of 0.87 and a beta of 1.32. The company has a quick ratio of 4.61, a current ratio of 4.61 and a debt-to-equity ratio of 0.96. The company’s 50 day moving average is $18.65 and its 200-day moving average is $21.74. Five9 has a 12-month low of $15.70 and a 12-month high of $49.90.

Five9 announced that its board has initiated a stock repurchase plan on Tuesday, November 11th that allows the company to repurchase $50.00 million in outstanding shares. This repurchase authorization allows the software maker to buy up to 3.2% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s leadership believes its stock is undervalued.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on FIVN. Needham & Company LLC restated a “buy” rating and issued a $40.00 target price on shares of Five9 in a research note on Thursday, December 18th. Cantor Fitzgerald dropped their price target on Five9 from $32.00 to $26.00 and set an “overweight” rating on the stock in a report on Friday. Canaccord Genuity Group reduced their price objective on Five9 from $40.00 to $33.00 and set a “buy” rating for the company in a research note on Friday. Barclays reduced their price target on shares of Five9 from $29.00 to $25.00 and set an “overweight” rating for the company in a research report on Monday, January 12th. Finally, UBS Group lowered their price objective on shares of Five9 from $30.00 to $22.00 and set a “buy” rating on the stock in a research report on Friday. Thirteen research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $27.63.

More Five9 News

Here are the key news stories impacting Five9 this week:

• Positive Sentiment: Q4 results beat estimates: EPS $0.80 vs. $0.79 and revenue $300.3M vs. $298.2M (revenue +7.8% YoY); company reported record full?year 2025 revenue of $1.1B. Business Wire: Five9 Reports Record Full Year 2025 Revenue
• Positive Sentiment: Management highlighted AI-driven strength—AI helped bookings and revenue growth, which analysts and media say helped calm some AI concerns and supported the rally. CNBC: Beaten-down software stocks rally as earnings quell AI concerns
• Neutral Sentiment: Some firms reaffirmed positive ratings (e.g., Rosenblatt kept a buy with a $26 PT), providing support even as targets were trimmed. TickerReport: Rosenblatt reaffirms buy
• Neutral Sentiment: Short?interest notices in data feeds show odd/zero values (likely a reporting artifact) and do not provide a clear signal.
• Negative Sentiment: Management issued conservative guidance: Q1 FY2026 EPS view of $0.10–$0.17 (consensus ~$0.55) and FY2026 EPS $0.86–$0.95 (consensus much higher). The weak guide is a primary downside risk to the stock. Five9 Q4 slide deck / guidance
• Negative Sentiment: Multiple firms lowered price targets (Canaccord, Mizuho, Truist, RBC, Cantor, UBS, Wells Fargo, etc.), which increases downside pressure despite many ratings remaining buy/outperform. Benzinga: Analyst PT changes

Insiders Place Their Bets

In other Five9 news, CEO Michael Burkland sold 17,992 shares of the business’s stock in a transaction on Thursday, December 4th. The shares were sold at an average price of $20.35, for a total transaction of $366,137.20. Following the sale, the chief executive officer owned 349,570 shares of the company’s stock, valued at $7,113,749.50. The trade was a 4.89% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Tiffany N. Meriweather sold 6,852 shares of the firm’s stock in a transaction on Thursday, December 4th. The stock was sold at an average price of $20.35, for a total value of $139,438.20. Following the completion of the transaction, the insider directly owned 212,126 shares of the company’s stock, valued at $4,316,764.10. The trade was a 3.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 65,339 shares of company stock worth $1,330,186 in the last three months. Insiders own 1.60% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Qube Research & Technologies Ltd lifted its holdings in shares of Five9 by 1,255.8% in the third quarter. Qube Research & Technologies Ltd now owns 422,772 shares of the software maker’s stock worth $10,231,000 after buying an additional 391,590 shares in the last quarter. Goldman Sachs Group Inc. increased its holdings in Five9 by 43.9% during the 4th quarter. Goldman Sachs Group Inc. now owns 1,226,253 shares of the software maker’s stock worth $24,586,000 after acquiring an additional 374,356 shares during the period. First Trust Advisors LP lifted its stake in Five9 by 29.4% in the 4th quarter. First Trust Advisors LP now owns 1,572,466 shares of the software maker’s stock worth $31,528,000 after purchasing an additional 357,321 shares in the last quarter. Atreides Management LP boosted its holdings in Five9 by 54.9% in the 2nd quarter. Atreides Management LP now owns 955,613 shares of the software maker’s stock valued at $25,305,000 after purchasing an additional 338,817 shares during the period. Finally, AQR Capital Management LLC boosted its holdings in Five9 by 288.7% in the 4th quarter. AQR Capital Management LLC now owns 433,720 shares of the software maker’s stock valued at $8,683,000 after purchasing an additional 322,132 shares during the period. Hedge funds and other institutional investors own 96.64% of the company’s stock.

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.