Freshworks NASDAQ: FRSH CFO Tyler Sloat said the company is positioning its employee experience, or EX, portfolio around enterprise-grade technology designed to avoid the complexity typically associated with larger software platforms.
Freshworks remains a compelling "Buy" as Q2 results dispel SaaS sector fears, with stable mid-teens revenue growth and strong Rule of 40 performance. FRSH's valuation is attractive, trading at a $2.67 billion enterprise value, with significant net cash and less than 2% penetration of its $45 billion TAM. EX ARR grew 23% year-over-year to $567 million, expected to maintain mid-20s growth and surpass $600 million by 2026, anchoring FRSH's growth engine.
Freshworks Inc. is initiated with a buy rating, citing a compelling EX positioning, cheap valuations, robust earnings and FCF growth, and technical momentum. FRSH's shift to an employee experience (EX) product suite, now 60% of ARR, drives superior growth, profitability, and stickiness, with EX ARR up 22% YoY. FY26 EPS guidance was raised by 7-8%, reversing prior expectations of an earnings contraction in FY26, with FY27 EPS growth projected at ~20-28%.
Freshworks leans on EX growth and AI adoption after a Q2 beat, lifting its 2026 outlook as profitability and share buybacks strengthen.
Freshworks Inc. (FRSH) Q2 2026 Earnings Call Transcript
Freshworks NASDAQ: FRSH reported second-quarter 2026 revenue of $237.4 million, up 16% year over year on a reported basis and 15% in constant currency, as the company highlighted continued growth in its employee experience, or EX, business and an earlier-than-expected move to GAAP profitability.
Freshworks Inc. (FRSH) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.13 per share. This compares to earnings of $0.18 per share a year ago.
Freshworks Inc. FRSH is set to report its second-quarter 2026 results on Aug. 4, after market close. The Zacks Consensus Estimate for revenues is pinned at $233.5 million, up 14.1% from the prior-year reported number.
Freshworks (FRSH) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.
The mean of analysts' price targets for Freshworks (FRSH) points to a 26% upside in the stock. While this highly sought-after metric has not proven reasonably effective, strong agreement among analysts in raising earnings estimates does indicate an upside in the stock.
As earnings estimates move higher and sentiment improves, several beaten-down software stocks appear positioned for a rebound, with Freshworks (FRSH) and Toast (TOST) standing out in particular.
Freshworks (FRSH) has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.