Wells Fargo & Company Has Lowered Expectations for Freshworks (NASDAQ:FRSH) Stock Price

Freshworks (NASDAQ:FRSH) had its target price cut by stock analysts at Wells Fargo & Company from $13.00 to $10.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage presently has an “equal weight” rating on the stock. Wells Fargo & Company‘s price target would suggest a potential upside of 37.85% from the stock’s previous close.

A number of other brokerages have also weighed in on FRSH. Robert W. Baird set a $10.00 price objective on shares of Freshworks in a report on Wednesday. UBS Group restated a “buy” rating and issued a $17.00 price target on shares of Freshworks in a research note on Friday, November 14th. Piper Sandler lowered their price objective on Freshworks from $12.00 to $10.00 and set a “neutral” rating for the company in a research report on Wednesday. BTIG Research began coverage on Freshworks in a research report on Tuesday, December 16th. They set a “neutral” rating on the stock. Finally, Zacks Research cut Freshworks from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 12th. Eight research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Freshworks has an average rating of “Hold” and a consensus target price of $15.71.

Freshworks Stock Down 16.9%

Shares of FRSH traded down $1.48 during trading on Wednesday, reaching $7.25. 6,711,618 shares of the company traded hands, compared to its average volume of 5,146,203. The stock has a 50-day simple moving average of $11.67 and a 200-day simple moving average of $12.06. The stock has a market cap of $2.05 billion, a PE ratio of -72.61 and a beta of 0.89. Freshworks has a twelve month low of $7.00 and a twelve month high of $18.77.

Freshworks (NASDAQ:FRSH) last released its quarterly earnings results on Tuesday, February 10th. The company reported $0.14 EPS for the quarter, topping analysts’ consensus estimates of $0.11 by $0.03. Freshworks had a negative return on equity of 0.37% and a negative net margin of 3.65%.The company had revenue of $222.74 million for the quarter, compared to analysts’ expectations of $218.76 million. During the same period in the prior year, the firm earned $0.14 earnings per share. The firm’s revenue was up 14.5% compared to the same quarter last year. Freshworks has set its Q1 2026 guidance at 0.100-0.120 EPS and its FY 2026 guidance at 0.550-0.570 EPS. On average, equities research analysts predict that Freshworks will post -0.19 EPS for the current year.

Insider Buying and Selling

In other news, CAO Philippa Lawrence sold 5,846 shares of Freshworks 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 transaction, the chief accounting officer directly owned 392,711 shares of the company’s stock, valued at $4,736,094.66. The trade was a 1.47% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Mika Yamamoto sold 15,012 shares of the stock in a transaction on Friday, December 5th. The stock was sold at an average price of $13.00, for a total transaction of $195,156.00. Following the sale, the insider owned 490,350 shares of the company’s stock, valued at approximately $6,374,550. This represents a 2.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 22,267 shares of company stock worth $282,301. Insiders own 11.17% of the company’s stock.

Institutional Trading of Freshworks

Several institutional investors and hedge funds have recently added to or reduced their stakes in FRSH. WINTON GROUP Ltd acquired a new stake in Freshworks during the 4th quarter worth approximately $448,000. Vise Technologies Inc. raised its stake in shares of Freshworks by 16.1% during the fourth quarter. Vise Technologies Inc. now owns 16,283 shares of the company’s stock worth $199,000 after purchasing an additional 2,253 shares during the last quarter. Globeflex Capital L P acquired a new stake in shares of Freshworks during the fourth quarter worth $613,000. State of Wyoming grew its position in Freshworks by 53.0% in the 4th quarter. State of Wyoming now owns 68,837 shares of the company’s stock valued at $843,000 after buying an additional 23,847 shares during the last quarter. Finally, Norges Bank acquired a new position in Freshworks in the 4th quarter valued at $31,873,000. 75.58% of the stock is owned by hedge funds and other institutional investors.

Key Freshworks News

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: Q4 results beat estimates — Freshworks reported $222.7M in revenue (≈14% y/y) and $0.14 non‑GAAP EPS, exceeded the high end of revenue and non‑GAAP operating margin guidance, and showed strong cash flow and ARR momentum. Freshworks Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: AI-led growth & long‑term ARR target — Management is pushing AI and its EX/CX platform as the growth engine and is targeting $1.3B ARR by 2028, which supports upside if adoption continues. Freshworks targets $1.3B ARR by 2028
• Positive Sentiment: Analyst support remains — Needham reaffirmed its “buy” rating with a $15 PT, implying material upside from current levels and signaling some analysts still view the company as a recovery/AI play. Needham reaffirms buy (Benzinga)
• Neutral Sentiment: Guidance is mixed — Freshworks guided FY‑2026 revenue to $952–$960M (slightly above consensus) and Q1 revenue above estimates, which is constructive for growth, but the company set FY EPS at $0.55–$0.57 (below the street). The revenue beat vs. the EPS shortfall creates the mixed market reaction. Freshworks Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Operational positives: product launches and the FireHydrant acquisition bolster ITSM/service offerings and could help cross‑sell. These are supportive but longer‑dated catalysts. Freshworks press release (GlobeNewswire)
• Negative Sentiment: Analyst pullback on valuation — Cantor Fitzgerald cut its price target from $15 to $12 (still “overweight”), signaling trimmed near‑term expectations and adding downward pressure. Cantor Fitzgerald lowers PT to $12 (Benzinga)
• Negative Sentiment: Market reaction to guidance — Some coverage notes shares fell after the guidance/earnings update because FY EPS fell short of consensus despite the revenue beat; investors appear focused on profitability cadence and sustainability of AI gains. Freshworks shares drop as earnings guidance disappoints investors (Investing.com)
• Negative Sentiment: One‑time accounting items cloud GAAP results — Q4 GAAP net income was boosted by a large tax benefit (valuation allowance release), so investors should focus on non‑GAAP metrics and recurring profitability. Freshworks Q4 release (GlobeNewswire)

Freshworks Company Profile

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.