Freshworks (NASDAQ:FRSH) Receives Buy Rating from Needham & Company LLC

Freshworks (NASDAQ:FRSH)‘s stock had its “buy” rating reissued by Needham & Company LLC in a research report issued on Wednesday,Benzinga reports. They presently have a $15.00 target price on the stock. Needham & Company LLC’s price target would suggest a potential upside of 71.82% from the stock’s current price.

A number of other equities research analysts have also recently weighed in on FRSH. Oppenheimer reduced their price target on shares of Freshworks from $19.00 to $18.00 and set an “outperform” rating for the company in a research report on Thursday, January 22nd. BTIG Research began coverage on shares of Freshworks in a report on Tuesday, December 16th. They issued a “neutral” rating on the stock. Wall Street Zen cut Freshworks from a “strong-buy” rating to a “buy” rating in a research report on Saturday, December 20th. Zacks Research lowered Freshworks from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 12th. Finally, Canaccord Genuity Group set a $14.00 price objective on shares of Freshworks in a research note on Wednesday. Seven analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $17.23.

Freshworks Stock Performance

Freshworks stock opened at $8.73 on Wednesday. The firm has a 50 day moving average price of $11.67 and a 200 day moving average price of $12.06. Freshworks has a fifty-two week low of $8.45 and a fifty-two week high of $18.77. The company has a market capitalization of $2.46 billion, a PE ratio of -87.29 and a beta of 0.89.

Freshworks (NASDAQ:FRSH) last announced its quarterly earnings data on Tuesday, February 10th. The company reported $0.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.03. The business had revenue of $222.74 million for the quarter, compared to analysts’ expectations of $218.76 million. Freshworks had a negative return on equity of 0.37% and a negative net margin of 3.65%.The company’s revenue for the quarter was up 14.5% compared to the same quarter last year. During the same period last year, the firm earned $0.14 earnings per share. Freshworks has set its Q1 2026 guidance at 0.100-0.120 EPS and its FY 2026 guidance at 0.550-0.570 EPS. As a group, equities research analysts forecast that Freshworks will post -0.19 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Mika Yamamoto sold 15,012 shares of the stock in a transaction that occurred on Friday, December 5th. The stock was sold at an average price of $13.00, for a total transaction of $195,156.00. Following the completion of the transaction, the insider directly owned 490,350 shares in the company, valued at approximately $6,374,550. This represents a 2.97% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CAO Philippa Lawrence sold 5,846 shares of Freshworks stock in a transaction on Tuesday, December 2nd. The stock was sold at an average price of $12.06, for a total transaction of $70,502.76. Following the completion of the sale, the chief accounting officer owned 392,711 shares of the company’s stock, valued at approximately $4,736,094.66. This trade represents a 1.47% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 22,267 shares of company stock worth $282,301. 11.17% of the stock is currently owned by corporate insiders.

Institutional Trading of Freshworks

Several hedge funds have recently bought and sold shares of FRSH. Royal Bank of Canada boosted its stake in Freshworks by 120.8% during the 1st quarter. Royal Bank of Canada now owns 21,388 shares of the company’s stock valued at $302,000 after purchasing an additional 11,703 shares in the last quarter. Amundi boosted its holdings in shares of Freshworks by 1.3% during the first quarter. Amundi now owns 80,074 shares of the company’s stock worth $1,049,000 after purchasing an additional 1,040 shares during the period. Goldman Sachs Group Inc. lifted its position in Freshworks by 35.1% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,225,056 shares of the company’s stock worth $31,396,000 after buying an additional 578,628 shares in the last quarter. Woodline Partners LP increased its stake in shares of Freshworks by 13.5% in the first quarter. Woodline Partners LP now owns 21,569 shares of the company’s stock worth $304,000 after acquiring an additional 2,571 shares during the last quarter. Finally, Focus Partners Wealth raised its holdings in shares of Freshworks by 20.2% during the first quarter. Focus Partners Wealth now owns 12,399 shares of the company’s stock worth $175,000 after acquiring an additional 2,086 shares in the last quarter. 75.58% of the stock is currently owned by institutional investors.

Freshworks News Summary

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: Q4 beat on revenue and EPS; strong profitability and cash flow — Freshworks reported $222.7M revenue (+14% Y/Y) and $0.14 non‑GAAP EPS, topping estimates, with improved GAAP operating income, $62M operating cash flow and $56M adjusted free cash flow. Freshworks Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: AI adoption & ARR momentum — Management cited AI-powered product adoption (Freddy AI, Freshservice / Freshdesk enhancements) and EX business passing $500M ARR as drivers of expansion and customer retention. Freshworks Inc (FRSH) Q4 2025 Earnings Call Highlights: Record Revenue and Strategic AI Growth
• Positive Sentiment: Longer‑term ARR target — Management set an ambition for $1.3B ARR by 2028, signaling explicit long‑term growth targets tied to its EX platform and AI roadmap. Freshworks targets $1.3B ARR by 2028 as EX platform and AI drive sustained growth
• Positive Sentiment: Revenue guidance nudges above Street — The company guided FY‑2026 revenue to $952–960M (slightly above consensus), reiterating mid‑teens growth and backing the narrative of demand for its AI features. Freshworks forecasts annual revenue above estimates on strong AI-driven software demand
• Neutral Sentiment: Analyst support — Canaccord reiterated a Buy, providing some sell‑side reinforcement even as price targets vary widely. Canaccord Genuity Remains a Buy on Freshworks (FRSH)
• Negative Sentiment: FY‑2026 EPS guidance below consensus — Freshworks guided non‑GAAP EPS to $0.55–0.57 for FY‑2026 versus a ~0.69 consensus, and Q1 EPS guidance ($0.10–0.12) was mixed versus expectations; that miss prompted investor concern and near‑term selling pressure. Freshworks shares drop as earnings guidance disappoints investors

Freshworks Company Profile

Freshworks, Inc is a global provider of cloud-based customer engagement software designed to help businesses streamline customer support, sales, marketing, and IT service operations. The company’s integrated suite of solutions enables organizations of all sizes to deliver seamless experiences across multiple channels, including email, chat, phone, and social media. Freshworks’ platform is built on modern, user-friendly interfaces and offers native automation, AI-powered insights, and analytics to improve efficiency and customer satisfaction.

The company’s flagship product, Freshdesk, serves as a helpdesk solution for customer support teams, while Freshservice addresses IT service management needs.