Five9 (NASDAQ:FIVN) Stock Price Up 17.8% After Strong Earnings

Five9, Inc. (NASDAQ:FIVN)’s share price traded up 17.8% during trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $18.45 and last traded at $20.2380. 375,995 shares traded hands during mid-day trading, a decline of 83% from the average session volume of 2,182,029 shares. The stock had previously closed at $17.18.

The software maker reported $0.80 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.79 by $0.01. Five9 had a net margin of 3.43% and a return on equity of 11.21%. The firm had revenue of $300.28 million for the quarter, compared to analysts’ expectations of $298.21 million. During the same period last year, the firm earned $0.79 earnings per share. The business’s revenue for the quarter was up 7.8% on a year-over-year basis. Five9 has set its Q1 2026 guidance at 0.100-0.170 EPS and its FY 2026 guidance at 0.860-0.950 EPS.

Five9 announced that its Board of Directors has initiated a share repurchase program on Tuesday, November 11th that authorizes the company to buyback $50.00 million in outstanding shares. This buyback authorization authorizes the software maker to reacquire up to 3.2% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its stock is undervalued.

Trending Headlines about Five9

Here are the key news stories impacting Five9 this week:

• Positive Sentiment: Q4 results beat estimates: EPS $0.80 vs. $0.79 and revenue $300.3M vs. $298.2M (revenue +7.8% YoY); company reported record full‑year 2025 revenue of $1.1B. Business Wire: Five9 Reports Record Full Year 2025 Revenue
• Positive Sentiment: Management highlighted AI-driven strength—AI helped bookings and revenue growth, which analysts and media say helped calm some AI concerns and supported the rally. CNBC: Beaten-down software stocks rally as earnings quell AI concerns
• Neutral Sentiment: Some firms reaffirmed positive ratings (e.g., Rosenblatt kept a buy with a $26 PT), providing support even as targets were trimmed. TickerReport: Rosenblatt reaffirms buy
• Neutral Sentiment: Short‑interest notices in data feeds show odd/zero values (likely a reporting artifact) and do not provide a clear signal.
• Negative Sentiment: Management issued conservative guidance: Q1 FY2026 EPS view of $0.10–$0.17 (consensus ~$0.55) and FY2026 EPS $0.86–$0.95 (consensus much higher). The weak guide is a primary downside risk to the stock. Five9 Q4 slide deck / guidance
• Negative Sentiment: Multiple firms lowered price targets (Canaccord, Mizuho, Truist, RBC, Cantor, UBS, Wells Fargo, etc.), which increases downside pressure despite many ratings remaining buy/outperform. Benzinga: Analyst PT changes

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on FIVN. Piper Sandler cut shares of Five9 from an “overweight” rating to a “neutral” rating and cut their target price for the stock from $26.00 to $21.00 in a research note on Monday, January 5th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Five9 in a research report on Monday, December 29th. DA Davidson set a $24.00 price target on Five9 in a report on Thursday, December 18th. Rosenblatt Securities reissued a “buy” rating and set a $26.00 target price on shares of Five9 in a report on Friday. Finally, Cantor Fitzgerald lowered their price target on shares of Five9 from $32.00 to $26.00 and set an “overweight” rating on the stock in a research report on Friday. Thirteen investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $27.63.

Insider Buying and Selling at Five9

In other news, President Andy Dignan sold 7,512 shares of the stock in a transaction on Thursday, December 4th. The stock was sold at an average price of $20.28, for a total value of $152,343.36. Following the completion of the transaction, the president directly owned 208,513 shares in the company, valued at approximately $4,228,643.64. This represents a 3.48% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Panos Kozanian sold 10,858 shares of the firm’s stock in a transaction on Thursday, December 4th. The shares were sold at an average price of $20.42, for a total value of $221,720.36. Following the sale, the executive vice president directly owned 94,457 shares in the company, valued at approximately $1,928,811.94. This trade represents a 10.31% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 65,339 shares of company stock worth $1,330,186 over the last 90 days. 1.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Five9

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Nisa Investment Advisors LLC raised its stake in shares of Five9 by 36.4% during the third quarter. Nisa Investment Advisors LLC now owns 1,630 shares of the software maker’s stock valued at $39,000 after acquiring an additional 435 shares during the last quarter. California State Teachers Retirement System increased its holdings in Five9 by 0.8% in the second quarter. California State Teachers Retirement System now owns 69,189 shares of the software maker’s stock valued at $1,832,000 after purchasing an additional 549 shares during the period. Global Retirement Partners LLC raised its position in Five9 by 81.7% during the 3rd quarter. Global Retirement Partners LLC now owns 1,228 shares of the software maker’s stock worth $30,000 after purchasing an additional 552 shares during the last quarter. Citizens Financial Group Inc. RI raised its position in Five9 by 7.3% during the 4th quarter. Citizens Financial Group Inc. RI now owns 11,358 shares of the software maker’s stock worth $228,000 after purchasing an additional 776 shares during the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al lifted its holdings in Five9 by 9.4% during the 3rd quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 9,300 shares of the software maker’s stock worth $225,000 after buying an additional 800 shares during the period. 96.64% of the stock is currently owned by institutional investors and hedge funds.

Five9 Price Performance

The business has a 50-day simple moving average of $18.65 and a 200 day simple moving average of $21.74. The stock has a market cap of $1.51 billion, a P/E ratio of 42.00, a price-to-earnings-growth ratio of 0.87 and a beta of 1.32. The company has a current ratio of 4.61, a quick ratio of 4.61 and a debt-to-equity ratio of 0.96.

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.