Five9 (NASDAQ:FIVN) Releases Earnings Results

Five9 (NASDAQ:FIVN) announced its quarterly earnings data on Thursday. The software maker reported $0.70 EPS for the quarter, topping analysts’ consensus estimates of $0.68 by $0.02, FiscalAI reports. Five9 had a return on equity of 12.87% and a net margin of 4.94%.The company had revenue of $312.44 million during the quarter, compared to the consensus estimate of $306.61 million. During the same quarter last year, the company earned $0.76 EPS. The company’s quarterly revenue was up 10.3% on a year-over-year basis. Five9 updated its Q3 2026 guidance to 0.770-0.810 EPS and its FY 2026 guidance to 3.220-3.300 EPS.

Here are the key takeaways from Five9’s conference call:

• Q2 revenue was $312 million, up 10% year over year and above the high end of guidance. Subscription revenue grew 14%, while AI revenue accelerated 78% year over year.
• Five9 raised its full-year 2026 AI revenue growth outlook to at least 60%, from more than 40% previously. AI revenue reached approximately $39 million in Q2, or about 15% of subscription revenue.
• The company won a Fortune 100 financial-services customer in a contract worth approximately $100 million in total contract value, expected to ramp to roughly $25 million of subscription ARR. The deal was supported by Five9’s partnership with Google and is expected to contribute minimally in 2026 but grow meaningfully thereafter.
• Five9 maintained its full-year revenue midpoint at $1.266 billion, with second-half guidance relying primarily on converting existing backlog rather than new-logo wins. Management expects subscription dollar-based retention to improve from 107% in Q2 by approximately one percentage point in Q3.
• Adjusted gross margin declined to 61% from 63% a year ago, while adjusted EBITDA margin fell to 22% from 24%, partly due to expanded professional-services capacity for faster AI deployments. Leadership and organizational changes are also expected to create higher temporary expenses in 2026.

Five9 Price Performance

Shares of FIVN stock opened at $33.99 on Friday. The stock’s fifty day simple moving average is $23.94 and its 200 day simple moving average is $19.89. Five9 has a one year low of $13.29 and a one year high of $34.10. The firm has a market cap of $2.60 billion, a price-to-earnings ratio of 49.26 and a beta of 1.42. The company has a debt-to-equity ratio of 0.89, a current ratio of 4.51 and a quick ratio of 4.51.

Key Stories Impacting Five9

Here are the key news stories impacting Five9 this week:

• Positive Sentiment: Quarterly results exceeded expectations: Five9 reported adjusted earnings of $0.70 per share, above the $0.68 consensus estimate, while revenue reached $312.44 million versus expectations of $306.61 million. Revenue increased 10.3% year over year, reinforcing the company’s continued growth in cloud contact-center software. Five9 Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: 2026 guidance was raised above analyst expectations: Five9 forecast third-quarter adjusted EPS of $0.77–$0.81, ahead of the $0.74 consensus, and revenue of $316 million–$322 million versus expectations of $314.6 million. Full-year EPS guidance of $3.22–$3.30 also exceeded the $2.88 consensus estimate, suggesting improved profitability expectations. Five9 Q2 Sales Beat Estimates
• Positive Sentiment: Analysts lifted their targets: Truist raised its target from $23 to $35 while maintaining a Buy rating, and Rosenblatt increased its target from $29 to $32 and kept a Buy rating. These revisions indicate greater confidence following the earnings report.
• Neutral Sentiment: Analyst views remain mixed: Piper Sandler raised its target from $24 to $30 but retained a Neutral rating, leaving its valuation below the prevailing share price. This suggests some analysts believe much of the improved outlook is already reflected in FIVN’s valuation. Analyst Price Target Updates
• Negative Sentiment: Profit growth was not uniform: Quarterly EPS declined from $0.76 in the year-earlier period to $0.70, despite the earnings beat. Investors may also monitor whether the company can sustain double-digit revenue growth after the recent rally.

Insider Activity

In other Five9 news, EVP Panos Kozanian sold 5,869 shares of Five9 stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $24.81, for a total transaction of $145,609.89. Following the completion of the transaction, the executive vice president directly owned 161,671 shares of the company’s stock, valued at approximately $4,011,057.51. This trade represents a 3.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Bryan M. Lee sold 16,620 shares of the business’s stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $24.81, for a total transaction of $412,342.20. Following the completion of the sale, the chief financial officer owned 311,462 shares in the company, valued at $7,727,372.22. This represents a 5.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 85,820 shares of company stock valued at $2,014,057. 1.20% of the stock is owned by company insiders.

Institutional Trading of Five9

Several large investors have recently added to or reduced their stakes in the company. Quarry LP bought a new position in shares of Five9 in the third quarter valued at approximately $33,000. Advisory Services Network LLC acquired a new position in shares of Five9 in the 3rd quarter worth approximately $38,000. Northwestern Mutual Wealth Management Co. grew its position in Five9 by 2,327.8% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,622 shares of the software maker’s stock worth $53,000 after acquiring an additional 2,514 shares during the last quarter. PharVision Advisers LLC bought a new stake in Five9 during the 3rd quarter worth approximately $203,000. Finally, Tower Research Capital LLC TRC increased its holdings in Five9 by 2,005.2% during the 2nd quarter. Tower Research Capital LLC TRC now owns 7,663 shares of the software maker’s stock valued at $203,000 after purchasing an additional 7,299 shares in the last quarter. 96.64% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

FIVN has been the subject of several research reports. Cantor Fitzgerald raised their target price on Five9 from $32.00 to $34.00 and gave the stock an “overweight” rating in a research report on Monday. Wall Street Zen cut shares of Five9 from a “strong-buy” rating to a “buy” rating in a research note on Saturday. Royal Bank Of Canada increased their price objective on shares of Five9 from $25.00 to $35.00 and gave the company an “outperform” rating in a research note on Friday. Zacks Research lowered shares of Five9 from a “strong-buy” rating to a “hold” rating in a research report on Thursday, July 30th. Finally, Piper Sandler lifted their target price on shares of Five9 from $24.00 to $30.00 and gave the company a “neutral” rating in a research report on Friday. Ten investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $29.64.

About Five9

Five9, Inc (NASDAQ: FIVN) is a leading provider of cloud-based contact center software designed to help organizations manage customer interactions across voice, email, chat, social media and other digital channels. Its platform offers features such as intelligent routing, analytics, workforce optimization and integrated customer relationship management (CRM) connectors. The company emphasizes AI-driven capabilities, including virtual agents and predictive dialing, to enhance both agent productivity and customer experience.

Founded in 2001 and headquartered in San Ramon, California, Five9 completed its initial public offering in February 2014.