Freshworks Inc

Shares of enterprise software companies, including Amplitude, GitLab, Doximity, Freshworks, and Sprinklr, soared in afternoon trading after quarterly earnings and upbeat commentary indicated that artificial intelligence is boosting software adoption rather than disrupting legacy models. The sector-wide rally was fueled by strong results from Salesforce, CrowdStrike, and Okta, with Salesforce's AI-powered Agentforce reaching $1.5 billion in annual recurring revenue and Slackbot surpassing 1 million active users within five months. CrowdStrike CEO George Kurtz attributed momentum to AI expanding the attack surface, while Okta reported that AI-focused offerings drove about 30% of new bookings and increased average contract values by roughly 40%. Amplitude jumped 9.4%, GitLab rose 8%, Doximity gained 3.3%, Freshworks climbed 5.4%, and Sprinklr advanced 7.2%, with Salesforce surging 20%.

Freshworks issued full-year 2026 revenue guidance of $963.5 million to $966.5 million and said it expects to sustain GAAP profitability after posting positive GAAP net income ahead of plan in the second quarter. The company reported Q2 revenue of $237.4 million, up 16% year-over-year, with non-GAAP operating margin of 24% and GAAP net income of $3.2 million, or $0.01 per share. EX annual recurring revenue grew 24% on a constant currency basis to $567 million, representing about 59% of total ARR, while customers contributing more than $100,000 in ARR rose 25% year-over-year and now account for roughly 40% of total ARR. For the third quarter, Freshworks guided revenue of $244.5 million to $245.5 million and non-GAAP EPS of approximately $0.18, and for the full year it expects non-GAAP EPS of $0.66 to $0.68 and adjusted free cash flow of about $265 million, implying a 27.5% margin. The company also highlighted that over 7,000 customers are paying for an AI SKU and that its Copilot attach rate on larger deals exceeds 70%.

Several stocks made notable moves this week following earnings reports and executive appointments. Huron Consulting Group surged 35.8% on Wednesday after reporting second-quarter results that beat analyst expectations for both revenue and profit and raising its full-year outlook. Sherwin-Williams rose 7.5% on Tuesday after stronger-than-expected second-quarter earnings and an increased full-year profit forecast. PROG Holdings fell 4.9% on Wednesday despite beating second-quarter 2026 estimates and raising full-year guidance. CONMED gained 10.5% on Thursday after second-quarter adjusted earnings topped expectations and the company lifted its full-year guidance. Freshworks rose 3.4% on Tuesday following the appointment of Ryan Manning as its new Chief Product and Technology Officer.

StockStory highlights Freshworks and PTC as two software stocks with promising prospects while recommending investors avoid Five9. Freshworks, with a market cap of $2.93 billion, is favored for its 25.8% annual revenue growth over five years, 85% gross margin, and 25.7% free cash flow margin. PTC, valued at $14.28 billion, is noted for 21% average billings growth, an 84.7% gross margin, and a 38.7% operating margin. In contrast, Five9, with a $1.90 billion market cap, is flagged for subpar 9.4% billings growth, slowing demand, and a lower 55.5% gross margin.

Sales software stocks reported mixed first-quarter results, with the four tracked companies collectively beating revenue estimates by 1.5% but issuing next-quarter guidance 0.8% below expectations. HubSpot led the group with revenues of $881 million, up 23.4% year on year and exceeding analysts’ estimates by 2.1%, while also raising its full-year EPS guidance. Freshworks posted revenues of $228.6 million, up 16.5% and beating estimates by 2.3%, and delivered the highest guidance raise among peers. ZoomInfo reported revenues of $310.2 million, up 1.5% and slightly above estimates, but its next-quarter revenue guidance missed significantly, sending shares down 51%. Salesforce recorded revenues of $11.13 billion, up 13.3% and surpassing estimates by 0.8%, though billings missed and full-year revenue guidance merely met expectations. On average, the stocks have fallen 15.3% since reporting.

Vanquis, a leading UK specialist bank, has selected Freshservice as its AI-powered service operations platform to support the next phase of its digital transformation. The selection is a key milestone in Vanquis' broader Gateway programme, the bank's flagship technology modernization initiative designed to create a simpler, more scalable and digital-first organization. Freshservice will help Vanquis bring service management, asset visibility and workflow automation onto a single platform, reducing legacy complexity and enabling greater agility. The platform was chosen for its ease of use, rapid time to value and AI-powered capabilities, giving Vanquis greater flexibility to automate workflows and streamline service delivery. Freshservice will enable faster incident resolution, more efficient request fulfillment and improved employee self-service, with built-in AI automating repetitive tasks and providing insights to improve service performance.

RVNA Technologies has acquired UXB Holdings, a San Francisco-based technology services firm specializing in customer experience and work management platforms. UXB, founded in 2015 by former Salesforce.com executive Bruno Saab, has served more than 800 clients and holds Platinum partner status with Freshworks and a fast-growing Gold partnership with monday.com. RVNA, which focuses on back-office and financial operations systems for the CFO office, plans to invest in expanding UXB's capabilities and market reach. The combined organization aims to deliver a more comprehensive enterprise platform offering by integrating front-office CX expertise with back-office depth. Financial terms of the transaction were not disclosed.

Freshworks reported first-quarter revenues of $228.6 million, up 16.5% year on year and exceeding analyst expectations by 2.3%, marking the biggest estimate beat among four tracked sales software stocks. The company added 326 enterprise customers paying more than $5,000 annually to reach a total of 25,088, and its stock has risen 2.6% since reporting. HubSpot posted the fastest revenue growth at 23.4% to $881 million, beating estimates by 2.1%, but its shares fell 24.5%. ZoomInfo grew revenues 1.5% to $310.2 million, missing full-year guidance expectations, and its stock dropped 53.1%. Salesforce reported $11.13 billion in revenue, up 13.3% and beating estimates by 0.8%, though it missed billings estimates and its shares declined 8.9%. Overall, the group exceeded revenue consensus by 1.5% while next-quarter guidance was in line, but average share prices are down 21% since earnings.