Five9 (NASDAQ:FIVN) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

07 Nov 2026, 21:29 by Jessica Moore · The Cerbat Gem

Five9 (NASDAQ:FIVN – Get Free Report) posted its quarterly earnings data on Thursday. The software maker reported $0.82 EPS for the quarter, topping analysts’ consensus estimates of $0.80 by $0.02, FiscalAI reports. Five9 had a net margin of 4.51% and a return on equity of 13.00%. The firm had revenue of $323.30 million during the quarter, compared to analyst estimates of $319.04 million. During the same quarter last year, the business posted $0.78 EPS. The company’s revenue was up 13.1% on a year-over-year basis.

Here are the key takeaways from Five9’s conference call:

Five9 reported Q3 revenue of $323 million, up 13% year over year, with subscription revenue up 16%. AI revenue grew 91% to about $45 million, and the company raised its 2026 AI revenue growth outlook to at least 75% from at least 60%.
Customer expansion and backlog conversion supported a subscription dollar-based retention rate of 109%, up from 107% in the prior quarter. Management expects full-year adjusted EBITDA margin of at least 24% and cash flow of approximately $175 million.
Five9 agreed to acquire Level AI for $325 million in cash, adding standalone AI products and a second route to customers that are not yet ready to move contact centers to the cloud. Level AI had approximately $20 million in ARR as of October 31 and was growing about 50% year over year; Five9 expects the deal to accelerate its AI roadmap.
The Level AI deal is expected to dilute adjusted EBITDA margin by about one percentage point in 2027, though management aims to bring its EBITDA dollars to break-even in roughly six months and expects margin accretion in 2028. The acquisition’s revenue and operating contribution are excluded from Five9’s 2026 guidance.
Five9 lowered its 2026 non-GAAP EPS midpoint by $0.07 to $3.19, citing the timing of planned organizational changes and a higher diluted share count. It still expects sequential adjusted EBITDA margin expansion in Q4, but said the organizational changes will shift into early 2027.

Five9 Stock Down 17.6%

Shares of FIVN stock traded down $6.02 during trading on Friday, hitting $28.12. 6,549,861 shares of the company were exchanged, compared to its average volume of 1,530,459. The business’s 50-day simple moving average is $34.54 and its 200 day simple moving average is $24.49. Five9 has a twelve month low of $13.29 and a twelve month high of $40.00. The firm has a market capitalization of $2.15 billion, a price-to-earnings ratio of 20.38 and a beta of 1.56. The company has a debt-to-equity ratio of 0.94, a quick ratio of 4.15 and a current ratio of 4.15.

Wall Street Analysts Forecast Growth

FIVN has been the topic of several recent analyst reports. Truist Financial cut their target price on shares of Five9 from $40.00 to $35.00 and set a “buy” rating on the stock in a research note on Friday. Piper Sandler increased their target price on Five9 from $24.00 to $30.00 and gave the company a “neutral” rating in a report on Friday, August 7th. Robert W. Baird raised their target price on Five9 from $22.00 to $30.00 and gave the stock a “neutral” rating in a research report on Monday, August 10th. Barclays lowered their price target on Five9 from $40.00 to $38.00 and set an “overweight” rating on the stock in a report on Friday. Finally, Wells Fargo & Company lowered their price target on Five9 from $36.00 to $28.00 and set an “equal weight” rating on the stock in a report on Friday. Twelve equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $33.94.

Read Our Latest Stock Report on FIVN

Insider Activity at Five9

In other Five9 news, CAO Leena Mansharamani sold 2,706 shares of the stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $33.35, for a total value of $90,245.10. Following the completion of the sale, the chief accounting officer owned 53,670 shares in the company, valued at $1,789,894.50. This represents a 4.80% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, President Andy Dignan sold 17,767 shares of the stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $35.03, for a total transaction of $622,378.01. Following the completion of the sale, the president owned 257,920 shares of the company’s stock, valued at approximately $9,034,937.60. The trade was a 6.44% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 83,831 shares of company stock worth $2,821,366 in the last 90 days. 1.20% of the stock is owned by corporate insiders.

Key Five9 News

Here are the key news stories impacting Five9 this week:

Positive Sentiment: Five9 reported Q3 adjusted EPS of $0.82 versus the $0.80 consensus and revenue of $323.3 million versus $319.0 million. Revenue rose 13% year over year, with subscription growth of 16%. Five9 Q3 results
Positive Sentiment: Management’s FY 2026 adjusted EPS guidance of $3.17–$3.21 is above the cited $2.92 consensus. The company also highlighted 91% growth in AI revenue, supporting its opportunity to expand AI-powered customer service products. Q3 earnings call highlights
Neutral Sentiment: Five9 agreed to acquire Level AI for $325 million in cash, adding tools for automating customer interactions and analyzing customer conversations. The deal could strengthen its AI platform, though its eventual financial contribution is uncertain. Level AI acquisition announcement
Negative Sentiment: Gross margins narrowed year over year: GAAP gross margin was 53.4%, versus 55.0% a year earlier. Q4 EPS guidance of $0.88–$0.92 straddles the $0.90 consensus, while revenue guidance is broadly in line with expectations—limiting evidence of a near-term forecast beat. Q3 estimates and margins
Negative Sentiment: Analyst responses were mixed but included a downgrade from Evercore to “in-line” with a $24 target and lower targets from Wells Fargo ($28), Truist ($35), and Barclays ($38). These cautious revisions may add pressure despite several firms retaining positive ratings. Wells Fargo analyst rating

Five9 Company Profile

(Get Free Report)

Five9, Inc is a cloud-based software company that provides customer experience and contact center solutions. Its platform enables organizations to manage customer interactions across voice, chat, email, social media and other digital channels without relying on traditional on-premises contact center infrastructure.