Companies /Technology

Freshworks Inc Class A

NASDAQ: FRSH Software - Application
$13.53
▼ $0.39 (−2.83%) today
Markets open · 2:29pm ET

Q2 2026 Earnings

Reported Aug 4, 2026, 4:23pm ET · SEC source
$0.17
Beat +30.37%
EPS · est. $0.13
$237.4M
Beat +1.62%
Revenue · est. $233.6M
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−8%−4%0Aug 4Aug 5report 4:23pm ETearnings−0.0%−4.0%
−8%−4%0Aug 4Aug 5earnings−0.0%−4.0%
FRSH −4.0%S&P 500 −0.0%
−8%−4%0Aug 4Aug 5report 4:23pm ETearnings−0.5%−4.0%
−8%−4%0Aug 4Aug 5earnings−0.5%−4.0%
FRSH −4.0%NASDAQ −0.5%
0+3%+6%Aug 3Aug 12report 4:23pm ETearnings+0.0%+1.7%
0+3%+6%Aug 3Aug 12earnings+0.0%+1.7%
FRSH +1.7%S&P 500 +0.0%
−3%0+3%+6%Aug 3Aug 12report 4:23pm ETearnings+0.2%+1.7%
−3%0+3%+6%Aug 3Aug 12earnings+0.2%+1.7%
FRSH +1.7%NASDAQ +0.2%
−4.32%
Day of report
+0.61%
Next session
+1.09%
One week

Did FRSH Beat Earnings? Q2 2026 Results

Freshworks delivered a strong second quarter for fiscal 2026, posting revenue of $237.38 million, up 16.0% year over year and ahead of the $233.59 million consensus estimate, while non-GAAP diluted EPS of $0.17 cleared the $0.13 consensus by 30.37%, underscoring broad operational improvement. The clearest driver of the quarter's profit story was operating leverage across sales, marketing, and general and administrative expenses, which helped swing GAAP operating income to $6.06 million from a loss of $8.66 million a year ago, and pushed the non-GAAP operating margin to 23.6% from 21.9%. AI product momentum added texture to the top-line strength, with Freshworks' Freddy AI Copilot attached to over 71% of new enterprise deals and the $100K-plus ARR customer cohort expanding 25% to 1,746 customers. Net dollar retention held at 104%. Looking ahead, management raised full-year 2026 revenue guidance to $963.50 million to $966.50 million, implying roughly 15% growth, with non-GAAP EPS now expected in the range of $0.66 to $0.68.

Key Takeaways
  • 16% year-over-year revenue growth (15% constant currency)
  • EX ARR grew 24% year-over-year
  • 25% year-over-year growth in $100K+ ARR customers to 1,746
  • 18% year-over-year growth in $50K+ ARR customers to 4,091
  • Non-GAAP operating margin expanded to 23.6% from 21.9%
  • Freddy AI Copilot attached to over 71% of new enterprise deals
  • 8th consecutive quarter achieving Rule of 40

“Freshworks just delivered its seventh straight quarter beating revenue estimates, its eighth consecutive quarter hitting Rule of 40, and a milestone we said we'd hit - GAAP profitability, months ahead of plan. This isn't just a moment, this has been a pattern of execution.”

Freshworks CEO, on the earnings call

Forward Guidance & Outlook

For Q3 2026, Freshworks expects revenue of $244.5–$245.5 million (~14% YoY growth, 14–15% constant currency), non-GAAP operating income of $59.0–$61.0 million, and non-GAAP diluted EPS of $0.18. For full year 2026, the company raised guidance to revenue of $963.5–$966.5 million (~15% YoY growth, 14–15% constant currency), non-GAAP operating income of $222.0–$228.0 million, and non-GAAP diluted EPS of $0.66–$0.68.

FRSH YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$70.0M$140.0M$210.0M$204.7M$237.4MRevenue$173.5M$201.3MGross Profit$2.2M$6.1MOperating Income$838,554$3.2MNet Income
$0$70.0M$140.0M$210.0MRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.