Companies

Freshworks Inc Class A

NASDAQ: FRSH
$13.46
▼ $0.46 (−3.30%) today
Markets closed · 7:49pm ET

Q1 2026 Earnings

Reported May 5, 2026, 4:26pm ET · SEC source
$0.11
Miss −2.14%
EPS · est. $0.11
$228.6M
Beat +2.44%
Revenue · est. $223.2M
+5.1%
Beating market
FRSH vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−12%−6%0May 5May 6report 4:26pm ETearnings+1.1%+0.6%
−12%−6%0May 5May 6earnings+1.1%+0.6%
FRSH +0.6%S&P 500 +1.1%
−10%−5%0+5%May 5May 6report 4:26pm ETearnings+1.6%+0.6%
−10%−5%0+5%May 5May 6earnings+1.6%+0.6%
FRSH +0.6%NASDAQ +1.6%
−10%−5%0+5%May 4May 13report 4:26pm ETearnings+2.5%−6.1%
−10%−5%0+5%May 4May 13earnings+2.5%−6.1%
FRSH −6.1%S&P 500 +2.5%
−10%−5%0+5%May 4May 13report 4:26pm ETearnings+4.8%−6.1%
−10%−5%0+5%May 4May 13earnings+4.8%−6.1%
FRSH −6.1%NASDAQ +4.8%
−3.26%
Day of report
+1.57%
Next session
−7.76%
One week
+5.85%
30 days

S&P 500 over the same 30 days: +0.73%.

Did FRSH Beat Earnings? Q1 2026 Results

Freshworks posted a mixed first quarter for fiscal 2026, clearing the revenue bar while falling just short on the bottom line. The cloud software company reported revenue of $228.63 million, up 16.5% year over year and ahead of the $223.19 million consensus estimate, but non-GAAP diluted EPS of $0.11 came in 2.14% below the $0.11 consensus, snapping a four-consecutive-quarter streak of EPS beats. The earnings miss reflected a deliberate margin trade-off, as the company stepped up investment in its Employee Experience platform and absorbed costs from the FireHydrant acquisition, with non-GAAP operating margin compressing to 17.9% from 23.6% a year ago. Enterprise traction provided an encouraging counterweight, with the $100K-plus ARR customer cohort growing 29% year over year to 1,646 accounts. Some analysts currently carry a Hold rating on the stock, reflecting measured expectations heading into the back half of the year. For Q2, Freshworks guided revenue of $232.00 million to $235.00 million, and the company sees full-year 2026 revenue of $958.00 million to $964.00 million.

Key Takeaways
  • Strong demand for Employee Experience (EX) platform driving accelerating EX ARR
  • Growing AI Copilot revenue
  • Net dollar retention rate of 106%, up from 105% year-over-year
  • 29% year-over-year growth in $100K+ ARR customers to 1,646
  • 22% year-over-year growth in $50K+ ARR customers to 3,938
  • Favorable foreign currency impact contributing ~2% to reported revenue growth

“Freshworks began Q1 with strong momentum, building on our 2025 successes and achieving our sixth straight quarter of exceeding expectations. High demand for our Employee Experience (EX) platform is fueling market traction, characterized by accelerating EX ARR, growing AI Copilot revenue, and strong net dollar retention. We are strategically investing in the EX opportunity as our approach continues to resonate with our customers. Freshworks is focused on delivering long-term value to shareholders and customers through sustainable growth and increased profitability.”

Freshworks CEO, on the earnings call

Forward Guidance & Outlook

For Q2 2026, Freshworks expects revenue of $232.0 million to $235.0 million (13-15% YoY growth), non-GAAP operating income of $41.0 million to $43.0 million, and non-GAAP net income per share of $0.13 on approximately 280 million diluted shares. For full year 2026, the company expects revenue of $958.0 million to $964.0 million (14-15% YoY growth), non-GAAP operating income of $207.0 million to $215.0 million, and non-GAAP net income per share of $0.61 to $0.63 on approximately 281 million diluted shares. Estimates are based on exchange rates as of May 1, 2026.

FRSH YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$70.0M$140.0M$210.0M$196.3M$228.6MRevenue$166.4M$193.9MGross Profit$-6,573,153$-8,060,000Operating Income
$0$70.0M$140.0M$210.0MRevenueGross ProfitOperating Income

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