Five9 beats Q1 revenue expectations, launches new buyback

Overview

• US intelligent CX platform's Q1 revenue rose 9% yr/yr, beating analyst expectations

• Adjusted EPS for Q1 beat analyst expectations

• Company announced $90 mln accelerated share repurchase, authorized new $200 mln buyback

Outlook

• Five9 sees Q2 revenue between $303 mln and $309 mln

• Company expects full-year 2026 revenue of $1.254 bln to $1.266 bln

• Five9 says outlook reflects ongoing macroeconomic challenges

Result Drivers

• SUBSCRIPTION REVENUE GROWTH - Co said Q1 results were driven by accelerating subscription revenue growth, up 13% yr/yr

• EXECUTION AND ORGANIZATIONAL CHANGES - Co cited a renewed focus on performance-driven culture and actions to sharpen execution and optimize organizational design, per CEO Amit Mathradas

• STRONG CUSTOMER RETENTION - LTM subscription dollar-based retention rate was 107% as of March 31, 2026

Company press release: ID:nBw8N6h54a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 6 "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 Five9 Inc is $25.00, about 46.6% above its April 29 closing price of $17.05

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

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