Freshworks Q4 revenue up 14%, beats estimates
Overview
Software provider's Q4 revenue rose 14% yr/yr, beating analyst expectations
Company's AI-powered software cited as key growth driver
Outlook
Freshworks expects Q1 2026 revenue between $222 mln and $225 mln
Company forecasts full-year 2026 revenue between $952 mln and $960 mln
Freshworks projects non-GAAP Q1 2026 EPS between $0.10 and $0.12
Result Drivers
AI-POWERED SOFTWARE - Freshworks' AI-powered software was a significant growth driver, contributing to product adoption and customer expansion
EX BUSINESS GROWTH - Employee Experience (EX) business surpassed half a billion dollars in annual recurring revenue
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $222.74 mln | $218.76 mln (15 Analysts) |
Q4 Net Income |
| $191.45 mln |
|
Q4 Pretax Profit |
| $46.89 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Freshworks Inc is $17.00, about 97% above its February 9 closing price of $8.63
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 17 three months ago
Press Release: ID:nGNXbjKW9S
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
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