Freshworks’ (FRSH) “Buy” Rating Reaffirmed at Needham & Company LLC

Needham & Company LLC reissued their buy rating on shares of Freshworks (NASDAQ:FRSH) in a report published on Wednesday,Benzinga reports. Needham & Company LLC currently has a $15.00 price target on the stock.

A number of other brokerages also recently weighed in on FRSH. BTIG Research assumed coverage on shares of Freshworks in a research report on Tuesday, December 16th. They issued a “neutral” rating for the company. Oppenheimer reduced their price target on Freshworks from $19.00 to $18.00 and set an “outperform” rating for the company in a report on Thursday, January 22nd. Zacks Research lowered Freshworks from a “strong-buy” rating to a “hold” rating in a report on Monday, January 12th. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Freshworks in a research note on Tuesday, January 20th. Finally, Citigroup reiterated an “outperform” rating on shares of Freshworks in a research report on Wednesday. Eight investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $14.92.

Freshworks Trading Down 16.4%

Freshworks stock opened at $7.30 on Wednesday. The firm has a market cap of $2.06 billion, a PE ratio of 11.41 and a beta of 0.89. Freshworks has a 12 month low of $7.00 and a 12 month high of $18.77. The stock’s 50 day simple moving average is $11.57 and its two-hundred day simple moving average is $12.02.

Freshworks (NASDAQ:FRSH) last posted its earnings results on Tuesday, February 10th. The company reported $0.14 earnings per share for the quarter, beating the consensus estimate of $0.11 by $0.03. Freshworks had a net margin of 21.90% and a return on equity of 4.77%. The firm had revenue of $222.74 million during the quarter, compared to analyst estimates of $218.76 million. During the same period in the previous year, the firm earned $0.14 EPS. The business’s quarterly revenue was up 14.5% on a year-over-year basis. Freshworks has set its Q1 2026 guidance at 0.100-0.120 EPS and its FY 2026 guidance at 0.550-0.570 EPS. On average, equities research analysts forecast that Freshworks will post -0.19 EPS for the current year.

Insider Transactions at Freshworks

In other Freshworks news, insider Mika Yamamoto sold 15,012 shares of the stock in a transaction dated Friday, December 5th. The shares were 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 in the company, valued at approximately $6,374,550. This represents a 2.97% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Philippa Lawrence sold 5,846 shares of the firm’s stock in a transaction that occurred on Tuesday, December 2nd. The stock was sold at an average price of $12.06, for a total transaction of $70,502.76. Following the completion of the transaction, the chief accounting officer directly owned 392,711 shares in the company, valued at $4,736,094.66. This trade represents a 1.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 22,267 shares of company stock valued at $282,301 over the last quarter. Company insiders own 11.17% of the company’s stock.

Institutional Investors Weigh In On Freshworks

Several hedge funds and other institutional investors have recently made changes to their positions in FRSH. Envestnet Asset Management Inc. lifted its holdings in shares of Freshworks by 34.1% in the 2nd quarter. Envestnet Asset Management Inc. now owns 110,654 shares of the company’s stock worth $1,650,000 after acquiring an additional 28,152 shares during the last quarter. Geode Capital Management LLC increased its holdings in Freshworks by 1.6% in the 2nd quarter. Geode Capital Management LLC now owns 4,856,163 shares of the company’s stock valued at $72,414,000 after purchasing an additional 75,688 shares during the last quarter. Nordea Investment Management AB purchased a new stake in Freshworks in the third quarter valued at approximately $5,083,000. Pier 88 Investment Partners LLC lifted its stake in Freshworks by 68.6% during the second quarter. Pier 88 Investment Partners LLC now owns 80,680 shares of the company’s stock worth $1,203,000 after purchasing an additional 32,830 shares in the last quarter. Finally, Edgestream Partners L.P. boosted its position in shares of Freshworks by 744.6% during the second quarter. Edgestream Partners L.P. now owns 367,873 shares of the company’s stock worth $5,485,000 after buying an additional 324,319 shares during the period. Institutional investors and hedge funds own 75.58% of the company’s stock.

Key Headlines Impacting Freshworks

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: Quarterly beat — Q4 revenue of $222.7M and non?GAAP EPS $0.14 topped Street estimates, and Freshworks delivered 16% full?year revenue growth and stronger operating cash flow and adjusted free cash flow. Freshworks Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: AI and ARR momentum — Management highlighted AI adoption (Freddy AI > $25M ARR) and EX business crossing $500M ARR, and set a longer?term ARR target (aims cited for $1.3B ARR by 2028) that supports the growth narrative. Freshworks targets $1.3B ARR by 2028 as EX platform and AI drive sustained growth
• Neutral Sentiment: Guidance mixed — management guided FY?2026 revenue to $952–960M (slightly above revenue consensus) and Q1 revenue above consensus, while projecting non?GAAP EPS of $0.55–0.57 for the year. Some of these figures help the growth story but leave margin/earnings questions. Freshworks forecasts annual revenue above estimates on strong AI-driven software demand
• Neutral Sentiment: Options activity — unusual call buying (roughly 4,648 calls) indicates speculative/short?term interest from some traders; this can amplify intraday moves but is not a fundamental shift.
• Negative Sentiment: EPS expectations / valuation shock — the company’s FY non?GAAP EPS range is well below some Street models (consensus ~0.69), which appears to be the main catalyst driving selling pressure as investors re?rate the stock versus prior expectations. Freshworks Reports Fourth Quarter and Full Year 2025 Results
• Negative Sentiment: Analyst price?target resets — several firms cut targets (examples: JMP/Citizens Jmp, Wells Fargo, Cantor Fitzgerald lowered targets), signaling analysts are reworking valuation assumptions and reducing near?term upside. How Freshworks (FRSH) Story Is Shifting As Analysts Rework The Edge Over Rivals
• Negative Sentiment: Market narrative / headlines — coverage highlighting a “nosedive” and analyst re?evaluation has likely amplified selling momentum today. Why Freshworks (FRSH) stock is nosediving

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.