Needham & Company LLC Reiterates “Buy” Rating for Freshworks (NASDAQ:FRSH)

Freshworks (NASDAQ:FRSH)‘s stock had its “buy” rating reiterated by investment analysts at Needham & Company LLC in a report issued on Wednesday,Benzinga reports. They presently have a $15.00 price objective on the stock. Needham & Company LLC’s target price indicates a potential upside of 113.07% from the company’s current price.

A number of other research analysts have also recently issued reports on FRSH. Citigroup reaffirmed an “outperform” rating on shares of Freshworks in a research note on Wednesday. Zacks Research lowered Freshworks from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 12th. Piper Sandler decreased their price target on Freshworks from $12.00 to $10.00 and set a “neutral” rating on the stock in a research note on Wednesday. Cantor Fitzgerald reissued an “overweight” rating on shares of Freshworks in a research note on Tuesday, January 20th. Finally, BTIG Research started coverage on shares of Freshworks in a report on Tuesday, December 16th. They issued a “neutral” rating on the stock. Eight equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Freshworks currently has a consensus rating of “Hold” and an average price target of $14.92.

Freshworks Price Performance

Shares of NASDAQ FRSH opened at $7.04 on Wednesday. The stock has a market capitalization of $1.99 billion, a P/E ratio of 11.00 and a beta of 0.89. Freshworks has a one year low of $6.79 and a one year high of $18.17. The firm’s 50 day simple moving average is $11.46 and its two-hundred day simple moving average is $11.99.

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 analysts’ consensus estimates of $0.11 by $0.03. The company had revenue of $222.74 million during the quarter, compared to analysts’ expectations of $218.76 million. Freshworks had a net margin of 21.90% and a return on equity of 4.77%. The firm’s revenue was up 14.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.14 EPS. 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 analysts expect that Freshworks will post -0.19 earnings per share for the current fiscal year.

Insiders Place Their Bets

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

Hedge Funds Weigh In On Freshworks

A number of institutional investors have recently bought and sold shares of the stock. Norges Bank bought a new stake in Freshworks during the 4th quarter valued at approximately $31,873,000. Eminence Capital LP raised its position in shares of Freshworks by 39.4% in the 2nd quarter. Eminence Capital LP now owns 7,334,601 shares of the company’s stock worth $109,359,000 after acquiring an additional 2,074,641 shares in the last quarter. Jupiter Asset Management Ltd. lifted its stake in shares of Freshworks by 1,528.6% in the 4th quarter. Jupiter Asset Management Ltd. now owns 1,708,811 shares of the company’s stock valued at $20,933,000 after purchasing an additional 1,603,887 shares during the period. Qube Research & Technologies Ltd boosted its position in shares of Freshworks by 132.6% during the third quarter. Qube Research & Technologies Ltd now owns 2,790,166 shares of the company’s stock valued at $32,840,000 after purchasing an additional 1,590,384 shares in the last quarter. Finally, Squarepoint Ops LLC grew its stake in Freshworks by 345.1% in the second quarter. Squarepoint Ops LLC now owns 1,835,798 shares of the company’s stock worth $27,372,000 after purchasing an additional 1,423,391 shares during the period. 75.58% of the stock is owned by institutional investors.

Key Headlines Impacting Freshworks

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: Q4 beat and growth targets — Freshworks reported $0.14 EPS (vs. $0.11 est.) and $222.7M revenue, +14.5% YoY, and provided FY26/Q1 EPS guidance and a plan to reach $1.3B ARR by 2028 driven by EX platform and AI initiatives. Q4 2025 Earnings Call Highlights
• Positive Sentiment: Longer-term growth narrative — management reiterated ARR and AI/employee‑experience (EX) strategy that could support durable revenue expansion if execution continues. ARR target and AI strategy
• Positive Sentiment: Analyst support remains from some firms — Needham reaffirmed a buy with a $15 PT, signalling continued conviction among parts of the sell‑side despite recent cuts. Needham rating reaffirmed
• Positive Sentiment: Unusual options flow — a near‑doubling in call volume (4,648 calls) suggests traders are placing bullish/leveraged bets, which can precede volatility or a directional reversal if fundamentals hold.
• Neutral Sentiment: Short‑interest reporting anomaly — recent feeds show short interest at “0” with NaN changes, likely a data issue rather than a true indicator of short selling pressure.
• Neutral Sentiment: Elevated trading volume and volatility — intraday volume has been well above average, reflecting heavy positioning after the print and contributing to larger price moves.
• Negative Sentiment: Multiple price‑target cuts — Citigroup/JMP, Wells Fargo and Cantor lowered targets (examples: JMP $27→$16, Wells Fargo $13→$10, Cantor $15→$12), which compresses near‑term sentiment even if ratings remain mixed. Analyst price target cuts
• Negative Sentiment: Negative headlines and analyst re‑ratings — coverage describing the stock as “nosediving” and discussion of a shifting investment thesis has likely amplified selling pressure despite the quarter’s beat. Why Freshworks stock is nosediving

About Freshworks

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.