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Q1 26 EPS
$0.11
MISS 2.14%
Est. $0.11
Q1 26 Revenue
$228.6M
BEAT +2.44%
Est. $223.2M
vs S&P Since Q1 26
+11.4%
BEATING MARKET
FRSH +12.6% vs S&P +1.1%
Market Reaction
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 co… Read more 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
FRSH 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, source: SEC Filings
“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.”
— Dennis Woodside, Q1 2026 Earnings Press Release
FRSH Earnings Trends
FRSH vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
FRSH EPS Trend
Earnings per share: estimate vs actual
FRSH Revenue Trend
Quarterly revenue: estimate vs actual
FRSH Quarterly Results
12 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 MISS | $0.11 | $0.11 | -2.14% | $228.6M | +2.44% |
| Q4 25 BEAT FY | $0.11 | $0.14 | +23.78% | $222.7M | +1.82% |
| FY Full Year | — | $0.66 | — | $838.8M | — |
| Q3 25 BEAT | $0.13 | $0.16 | +25.49% | $215.1M | +3.02% |
| Q2 25 BEAT | $0.12 | $0.18 | +55.84% | $204.7M | +2.89% |
| Q1 25 BEAT | $0.13 | $0.18 | +39.32% | $196.3M | +2.28% |
| Q4 24 BEAT FY | $0.12 | $0.14 | +16.86% | $194.6M | +1.19% |
| FY Full Year | — | $0.43 | — | $720.4M | — |
| Q3 24 BEAT | $0.08 | $0.11 | +37.50% | $186.6M | +0.00% |
| Q2 24 BEAT | $0.06 | $0.08 | +33.33% | $174.1M | +3.03% |
| Q1 24 BEAT | $0.08 | $0.10 | +25.00% | $165.1M | +0.00% |
| Q4 23 BEAT FY | $0.05 | $0.08 | +60.00% | $160.1M | +1.02% |
| FY Full Year | — | $0.26 | — | $596.4M | — |
| Q3 23 BEAT | $0.05 | $0.08 | +60.00% | $153.6M | +1.89% |
| Q1 23 BEAT | $-0.02 | $0.03 | +250.00% | $137.7M | +2.56% |