Freshworks Q4 revenue up 14%, beats estimates

Reuters05:19
<a href="https://laohu8.com/S/FRSH">Freshworks</a> 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

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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