Five9 (NASDAQ:FIVN) Releases Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Five9 (NASDAQ:FIVN) announced its quarterly earnings data on Thursday. The software maker reported $0.70 earnings per share for the quarter, beating the consensus estimate of $0.68 by $0.02, FiscalAI reports. Five9 had a return on equity of 12.66% and a net margin of 4.87%.The company had revenue of $312.44 million during the quarter, compared to analysts’ expectations of $306.61 million. 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 Stock Performance

NASDAQ FIVN traded down $1.35 during trading on Thursday, reaching $28.25. The company’s stock had a trading volume of 3,477,455 shares, compared to its average volume of 2,886,515. The firm has a 50 day moving average price of $23.64 and a 200 day moving average price of $19.71. Five9 has a 12 month low of $13.29 and a 12 month high of $30.21. The firm has a market capitalization of $2.16 billion, a price-to-earnings ratio of 42.80 and a beta of 1.42. The company has a current ratio of 4.51, a quick ratio of 4.51 and a debt-to-equity ratio of 0.89.

Insiders Place Their Bets

In other Five9 news, EVP Panos Kozanian sold 5,869 shares of the company’s 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 sale, the executive vice president directly owned 161,671 shares in the company, valued at $4,011,057.51. This represents a 3.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Matthew E. Tuckness sold 8,645 shares of the firm’s stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $24.81, for a total transaction of $214,482.45. Following the completion of the sale, the executive owned 281,492 shares in the company, valued at approximately $6,983,816.52. The trade was a 2.98% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 85,820 shares of company stock valued at $2,014,057 over the last 90 days. 1.20% of the stock is owned by company insiders.

Institutional Trading of Five9

Several large investors have recently modified their holdings of FIVN. California State Teachers Retirement System increased its stake in Five9 by 0.8% in the 2nd quarter. California State Teachers Retirement System now owns 69,189 shares of the software maker’s stock worth $1,832,000 after acquiring an additional 549 shares during the last quarter. Franklin Resources Inc. lifted its position in Five9 by 1.5% during the fourth quarter. Franklin Resources Inc. now owns 56,303 shares of the software maker’s stock valued at $1,129,000 after purchasing an additional 807 shares during the last quarter. Quarry LP purchased a new position in Five9 in the 3rd quarter worth approximately $33,000. Advisory Services Network LLC bought a new position in Five9 in the third quarter valued at $38,000. Finally, Guggenheim Capital LLC raised its holdings in shares of Five9 by 5.3% during the 4th quarter. Guggenheim Capital LLC now owns 38,342 shares of the software maker’s stock valued at $769,000 after buying an additional 1,938 shares in the last quarter. Institutional investors and hedge funds own 96.64% of the company’s stock.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the company. Truist Financial set a $23.00 price target on Five9 in a research report on Wednesday, July 1st. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Five9 in a research report on Monday. DA Davidson set a $22.00 price objective on shares of Five9 in a research report on Monday. Zacks Research cut shares of Five9 from a “strong-buy” rating to a “hold” rating in a report on Thursday, July 30th. Finally, Barclays raised their target price on shares of Five9 from $22.00 to $25.00 and gave the company an “overweight” rating in a research note on Friday, May 1st. Ten research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Five9 currently has an average rating of “Moderate Buy” and an average price target of $25.93.

Five9 Company Profile

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.