Freshworks Guides 2026 Profit Below Estimates, Shares Drop on AI Jitters

Overview

• Freshworks forecast adjusted EPS of $0.55–$0.57 for 2026, below the $0.69 analysts expected, citing a higher tax rate.
• The company projected 2026 revenue of $952 million to $960 million, slightly ahead of Wall Street’s $945.3 million view.
• Shares fell more than 6% in extended trading as investors weighed AI competition, including Anthropic’s new enterprise plugins.
• Q4 revenue rose about 14% to $222.7 million with adjusted EPS of $0.14 topping estimates, while reported net income of $191.4 million was lifted by non-cash tax items including a $151 million valuation allowance release.
• CEO Dennis Woodside said customers are unlikely to replace established systems with DIY AI tools, highlighting per-seat licensing, recent customer growth to 24,762 at a key ARR threshold, and an agreement to acquire FireHydrant for AI-native incident management.