Freshworks Inc. research snapshot
FRSH AI stock analysis currently reads Freshworks Inc. as a mid-market SaaS provider selling customer service, IT service management, and CRM software on a cloud subscription model. The latest close referenced was $11.77 on August 3, 2026, giving a verified market cap of about $3.25 billion on 276.4 million shares, down from 283.3 million a year earlier as the company bought back stock. TTM revenue through Q1 2026 was $871.2 million, up 15.9%, with $238.5 million in free cash flow and a net cash position of about $750 million with no long-term debt. The FRSH AI stock forecast uses scenario ranges because revenue growth is moderating to the mid-teens, FY2026 guidance points to 14-15% growth, competition from larger players remains intense, and Q2 2026 earnings are scheduled for release after the market close on August 4, 2026. This page is for informational use only and is not investment advice.
Current price
$11.77
Market cap
$3.25 billion verified
AI score
62 / 100
Rating
Profitable mid-market SaaS platform with improving margins, accelerating EX momentum, and stronger analyst conviction, offset by moderating growth and competitive intensity
Trend status
Uptrend above both the 50-day ($10.01) and 200-day ($10.02) moving averages after a 34.5% three-month rally, about 16% below the 52-week high of $14.06
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Freshworks sells cloud software for customer service, IT service management, and CRM under a subscription model with 85% gross margins. Revenue is recurring and diversified, and TTM revenue reached $871.2M with free cash flow of $238.5M. | High |
| Moat | The moat comes from product breadth across CX, EX, and CRM, workflow data embedded in customer operations, and the Freddy AI platform. It is real but narrower than ServiceNow or Salesforce, because mid-market switching costs are lower and competitors can match features quickly. | Medium |
| Management | CEO Dennis Woodside delivered a sixth straight quarter of beating expectations in Q1 2026 and raised FY2026 guidance. The company is buying back stock, appointed Ian Tickle as CRO, and named Ryan Manning as chief product and technology officer effective August 10, 2026, a transition that carries key-person risk. | Medium-high |
| Financial trend | TTM revenue grew 15.9% to $871.2M, GAAP net income was $180.2M, free cash flow reached $238.5M (27.4% margin), and the company holds about $750M in net cash with no long-term debt. Q1 2026 revenue was $228.6M, up 16%, with a non-GAAP operating margin of 17.9%. | High |
| Valuation | At $11.77, the local audit gives 18.7x TTM GAAP EPS, 3.22x book value, 13.7x TTM FCF, a 7.3% FCF yield, and 3.7x trailing revenue. The PEG near 0.57 reflects the market pricing in the lower growth rate, leaving limited multiple cushion if growth disappoints. | Medium-high |
| Technical trend | FRSH trades above both the 50-day ($10.01) and 200-day ($10.02) moving averages, up 34.5% over three months, with an RSI near 65. Barchart support levels sit at $11.62, $11.48, and $11.25, while resistance sits at $11.99, $12.22, and $12.36, below the 52-week high of $14.06. | Medium |
| Risk level | Risk is moderate. Growth deceleration below 12%, competition from Zendesk, ServiceNow, Salesforce, and HubSpot, FX headwinds, stock-based compensation dilution, and the CPTO transition are the main watch items. Short interest is 7.3% of shares outstanding. | High |
| AI confidence | High for historical financials, cash position, valuation math, and the technical snapshot. Medium for forward projections because revenue growth, AI monetization, enterprise execution, margins, and the earnings multiple are uncertain. | High data confidence |
| Investment certainty | Investment certainty is medium. The improving profitability, buybacks, and analyst upgrades support the bullish view, but a decelerating growth rate and competitive pressure make this a show-me story where the Q2 2026 report and FY2026 execution decide the next move. | Medium |
FRSH AI stock forecast
The FRSH AI stock forecast is a scenario range, not a promise. Using the August 3, 2026 close of $11.77, FY2025 diluted GAAP EPS of $0.63, and a three-year model with 20%, 10%, and -5% EPS growth paired with 25x, 18x, and 12x exit P/E, the mechanical outputs are about $27.2 bullish, $15.1 base, and $6.5 bearish. The base case prices in mid-teens growth, margin improvement, and a valuation that normalizes near the current level.
$22 to $30
More likely if EX ARR keeps accelerating, AI Copilot and Agent Studio revenue scale faster than expected, enterprise deal size expands, FY2026 non-GAAP operating margins reach 22% or more, and the market assigns a premium 25x+ P/E to the improving earnings.
$12 to $18
More likely if revenue grows 14-16%, non-GAAP operating income lands in the FY2026 guidance range of $207-215M, buybacks continue, and the stock holds a multiple near 18x forward earnings.
$5 to $8
More likely if growth falls below 10% on competitive pressure or macro weakness, FX stays a drag, AI monetization disappoints, margins stall, and the multiple compresses toward the February 2026 low of $6.79.
FRSH AI technical analysis
FRSH AI technical analysis uses the August 3, 2026 close of $11.77 with a 52-week range of $6.79 to $14.06. The stock trades above both the 50-day and 200-day moving averages and has rallied 34.5% over three months. Barchart support levels near $11.62, $11.48, and $11.25 sit just below price, while resistance at $11.99, $12.22, and $12.36 marks the immediate overhead. Beta near 0.88 suggests slightly lower volatility than the market.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $11.77 | Close price referenced for this August 4, 2026 data cutoff. Confirm live price before acting. |
| Near support | $11.48 to $11.62 | The first support band from Barchart. A bounce here after a pullback would keep the uptrend intact. |
| Secondary support | $11.25 to $11.28 | The third Barchart support level overlapping the 61.8% Fibonacci retracement. This is the first zone that matters for trend confirmation. |
| Major support | $10.01 to $10.43 | The 50-day and 200-day moving average zone near $10.01-$10.02 and the 50% Fibonacci retracement near $10.43. A close below this band would signal a deeper correction. |
| Range low | $6.79 | The 52-week and all-time low from February 2026. A break below this level would be a new low. |
| Near resistance | $11.99 to $12.22 | The immediate overhead from Barchart. A close above $11.99 on volume opens the path toward $12.36. |
| Secondary resistance | $12.36 to $14.06 | The third resistance point and then the 52-week high. The expected options range of $11.22 to $12.32 is consistent with this zone. |
| Moving averages | 50-day at $10.01 and 200-day at $10.02 | Price is above both moving averages, a positive trend condition. The two averages are nearly converged, so a sustained move below them would be a bearish signal. |
| Momentum | RSI near 65 | Approaching the overbought threshold of 70 but not yet there, leaving room before momentum is stretched. |
| Volatility | Beta ~0.88 | Beta below 1.0 suggests the stock moves slightly less than the market on average. Options implied volatility is elevated around the August 4 earnings release. |
| Invalidation | Sustained close below $11.25 | A confirmed break of the $11.25 support with the 61.8% retracement would signal the rally is losing momentum and pull the technical picture back toward neutral. |
FRSH AI trading strategy
The FRSH AI trading strategy is a rules-based research framework, not personalized advice. FRSH reports Q2 2026 earnings after the close on August 4, 2026, so chart-based setups should be weighed against the actual results, updated guidance, and the CPTO transition before any decision.
Watch for FRSH to hold above $11.48 and clear $11.99 on above-average volume, which would extend the uptrend above the 61.8% retracement. A breakout is more convincing if it follows Q2 2026 results that confirm the guidance trajectory or an analyst upgrade.
A failed breakout back below $11.25 invalidates the setup. Position size should reflect that the stock is above short-term support but still 16% below the 52-week high.
If FRSH pulls back to the $10.01 to $10.43 zone, which combines the moving averages with the 50% Fibonacci retracement, compare the price with Q2 2026 results, non-GAAP margins, net revenue retention, and the raised 2028 revenue target before treating it as a mean-reversion entry.
Do not average down on valuation alone. A decelerating growth story can hold a low multiple for several quarters, and earnings volatility can overshoot the support band.
Track quarterly revenue growth, non-GAAP operating margin, net dollar retention (106% in Q1 2026), customers above $100K ARR (1,646, up 29%), AI Copilot and Agent Studio adoption, buyback pace, and the CPTO transition through the fall.
Reduce confidence if growth falls below 12%, net revenue retention slips under 103%, margins compress, or the post-earnings reaction breaks $11.25.
Investment research summary
Freshworks sells cloud software that helps companies run customer service, IT operations, and sales on one platform. Customers pay recurring subscriptions across Freshdesk (CX), Freshservice (EX), and Freshsales (CRM). The economic engine is subscription revenue from roughly 75,000 companies, with expansion driven by product adoption, EX momentum, AI monetization, and upmarket deals, including the first $1M-plus ARR contract in Q1 2026.
The moat comes from product breadth, workflow data embedded in customer operations, mid-market distribution, and the Freddy AI platform. Switching costs are moderate: a customer can move to Zendesk or ServiceNow if Freshworks does not keep delivering value. The Gartner Leader ranking in the 2026 ITSM Magic Quadrant adds credibility in the enterprise buying process.
The thesis fails if competition from Zendesk, ServiceNow, Salesforce, and HubSpot intensifies, the enterprise upmarket move stalls and burns cash, AI monetization stays a small revenue line, growth falls below 10% without margin gains, FX keeps cutting constant currency growth, or the CPTO transition disrupts the product roadmap. Short sellers have 7.3% of shares outstanding positioned for such an outcome.
CEO Dennis Woodside has produced six straight quarters above expectations, raised FY2026 guidance, and bought back stock, cutting the share count 4.1% over the past year. Founder Girish Mathrubootham remains executive chairman. The near-term test is the CPTO transition, as Ryan Manning replaces Srini Raghavan on August 10, 2026, and whether growth can hold mid-teens while margins keep improving.
The CX and ITSM software markets grow around 10-12% a year, and AI is becoming the main differentiator. Freshworks sits in a favorable spot: mid-market customers are modernizing service operations, and the company is raising its 2028 revenue target to $1.3B-plus with mid-20s percent growth, betting that EX, AI Copilot, and Agent Studio become the primary growth engines.
At $11.77, FRSH trades at 18.7x trailing GAAP earnings, 13.7x trailing FCF, and 3.7x revenue, with a 7.3% FCF yield and a PEG near 0.57. The three-year scenario model ranges from $6.5 to $27.2, with a base case near $15.1. The margin of safety is limited: the current price already prices in steady execution and assumes the deceleration stops at mid-teens growth.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| Latest stock price | $11.77 close on August 3, 2026 | StockAnalysis and Barchart price feed | August 4, 2026 |
| Shares outstanding | 276.43 million, down 4.11% year over year on buybacks | StockAnalysis share statistics and Freshworks Q1 2026 press release | August 4, 2026 |
| Market capitalization verification | $3.25 billion from $11.77 x 276.43M; verified by financial_rigor.py with 0.11% variance from reported | Pineify financial_rigor.py, StockAnalysis, and Barchart | August 4, 2026 |
| TTM revenue | $871.2 million, up 15.9%; cross-validated between StockAnalysis and the Q1 2026 computation (FY2025 minus Q1 2025 plus Q1 2026) within 0.01% | StockAnalysis financials and Freshworks Q1 2026 press release | August 4, 2026 |
| Q1 2026 results | Revenue $228.6M, up 16% YoY; non-GAAP operating income $41.0M (17.9% margin); non-GAAP EPS $0.11 | Freshworks Q1 2026 earnings release | August 4, 2026 |
| FY2025 results | Revenue $838.8M, up 16.4%; GAAP net income $183.7M (first profitable year); diluted GAAP EPS $0.63 | StockAnalysis financials and Freshworks FY2025 10-K | August 4, 2026 |
| Cash and balance sheet | $779.2M in cash and short-term investments as of March 31, 2026; net cash $749.8M; no long-term debt beyond operating leases | Freshworks Q1 2026 press release and StockAnalysis balance sheet | August 4, 2026 |
| Free cash flow and margins | TTM free cash flow $238.5M (27.4% margin); TTM operating cash flow $246.8M; 85.0% gross margin | StockAnalysis cash flow statement | August 4, 2026 |
| Valuation ratios | 18.68x P/E, 3.22x P/B, 13.69x P/FCF, 7.31% FCF yield, 3.74x P/S, 17.18x forward P/E; verified by financial_rigor.py | Pineify financial_rigor.py with StockAnalysis inputs | August 4, 2026 |
| FY2026 guidance | Revenue $958-964M (14-15% growth); non-GAAP operating income $207-215M; non-GAAP EPS $0.61-0.63 | Freshworks Q1 2026 earnings release | August 4, 2026 |
| Analyst consensus | Buy, 16 analysts; average price target $12.77 (range $8 to $25); Guggenheim initiated Buy with $25 target on July 22, 2026 | StockAnalysis forecast page | August 4, 2026 |
| 52-week range and technical levels | 52-week range $6.79 to $14.06; supports $11.62/$11.48/$11.25; resistances $11.99/$12.22/$12.36; 50-day MA $10.01; 200-day MA $10.02 | Barchart and StockAnalysis | August 4, 2026 |
| Three-scenario model | Bull $27.2, base $15.1, and bear $6.5 using 20%/10%/-5% EPS growth and 25x/18x/12x exit P/E over three years | Local financial_rigor.py three-scenario calculation | August 4, 2026 |
| Customer and retention metrics | Net dollar retention 106%; 1,646 customers above $100K ARR, up 29% YoY | Freshworks Q1 2026 earnings release | August 4, 2026 |
This FRSH AI stock analysis page is an informational tool only. It is not investment advice, a solicitation, or a guarantee of returns. Forecast ranges are scenarios based on public data available as of August 4, 2026 and can be wrong if revenue growth, competitive dynamics, AI adoption, margins, FX rates, stock-based compensation, or market valuation change. Freshworks reports Q2 2026 results after the market close on August 4, 2026, and this page does not include those results.
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