Freshworks Inc. FRSH is set to report its second-quarter 2026 results on Aug. 4, after market close.
The Zacks Consensus Estimate for revenues is pinned at $233.5 million, up 14.1% from the prior-year reported number. The consensus estimate for earnings is pegged at 13 cents per share, down 27.8% year over year. The estimate has remained unchanged in the past 60 days.
For the June quarter, management expects revenues in the range of $232 million to $235 million, implying year-over-year growth of 13% to 15%. Non-GAAP earnings per share (EPS) are expected to be 13 cents.
FRSH’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and matched once, delivering an average surprise of 25.1%.
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In the past year, shares of the company have lost 11.2% compared with the Zacks Internet Software industry’s decline of 20.4%.
What Does Our Model Unveil for FRSH?
Our proven model does not predict an earnings beat for Freshworks this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
Freshworks has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors at Play Ahead of FRSH’s Q2 Results
Freshworks entered second-quarter 2026 against a backdrop of increasing momentum in its Employee Experience (EX) segment and cost discipline. In the first quarter, EX ARR grew 27% year over year, supported by strong new customer wins and existing business expansion. The company is benefiting from increasing adoption among mid-market and enterprise customers.
Management expects this momentum to sustain, with EX ARR anticipated to grow in the mid-20% range and contribute more than 60% of total ARR by 2026-end.
At the Refresh event, held on May 14, management further stressed continued investment in capabilities and platform expansion to capture a larger opportunity of the EX market.
The company is embedding AI across the portfolio. Freshworks’ AI capabilities, particularly through its Freddy AI platform, are emerging as an important differentiator. Management highlighted Freddy AI Copilot as one of its fastest-growing products, with strong customer growth, business attach rates and accelerating traction among AI clients on the first quarter earnings call. This is likely to have cushioned performance in the quarter to be reported.
Freshworks Inc. Price and Consensus
Freshworks Inc. price-consensus-chart | Freshworks Inc. Quote
Freshworks remains focused on driving profitability alongside growth. The company is executing on cost-cutting initiatives, including workforce trimming and accelerating use of AI and automation internally. Non-GAAP operating income is projected to be between $41 million and $43 million for the second quarter.
While EX remains robust, the Customer Experience (CX) segment is projected to grow at a more modest pace. In the last reported quarter, CX ARR increased 6% year over year, and management expects low single-digit growth for 2026.
The company is focused on improving efficiency and profitability in this segment through platform consolidation (Freshdesk Omni), better customer alignment and disciplined go-to-market execution.
Stocks to Consider
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Arista Networks ANET currently has an Earnings ESP of +3.08% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
ANET is scheduled to report quarterly earnings on Aug. 4. The Zacks Consensus Estimate for ANET’s to-be-reported quarter’s earnings and revenues is pegged at 89 cents per share and $2.83 billion, respectively. Shares of ANET have gained 45.5% in the past year.
Caterpillar CAT presently has an Earnings ESP of +4.96% and a Zacks Rank #3. CAT is scheduled to report quarterly numbers on Aug. 4. The Zacks Consensus Estimate for Caterpillar’s to-be-reported quarter’s earnings and revenues is pegged at $6.25 per share and $19.31 billion, respectively. Shares of CAT have risen 89% in the past year.
Advanced Micro Devices, Inc. AMD has an Earnings ESP of +1.56% and a Zacks Rank #2 at present. AMD is scheduled to report quarterly figures on Aug. 4. The Zacks Consensus Estimate for AMD’s to-be-reported quarter’s earnings and revenues is pegged at $1.61 per share and $11.32 billion, respectively. Shares of AMD have skyrocketed 185.3% in the past year.
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Freshworks Inc. (FRSH): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).