Freshworks Inc. (NASDAQ: FRSH) saw its stock surge 5.09% in intraday trading on Wednesday, following the release of its impressive first-quarter 2025 earnings report and a series of positive analyst actions. The AI-driven customer engagement software provider demonstrated strong financial performance and raised its full-year guidance, boosting investor confidence.

The company reported adjusted earnings of $0.18 per share for Q1 2025, significantly surpassing analysts' consensus estimate of $0.13 per share. Revenue for the quarter climbed 19% year-over-year to $196.3 million, exceeding Wall Street expectations of $192.0 million. Buoyed by these strong results, Freshworks raised its full-year 2025 guidance, now expecting annual revenue between $815.3 million and $824.3 million, up from its previous forecast of $809 million to $821 million.

The robust performance and optimistic outlook have prompted several analysts to revise their price targets for Freshworks stock. JP Morgan raised its target price from $17 to $19, while Piper Sandler increased its target from $20 to $22. Wells Fargo also raised its price target to $12 from $11, although it maintained an Underweight rating. JMP Securities reiterated its Buy rating with a price target of $27. These positive analyst actions, coupled with the strong earnings report, have contributed to the significant stock price increase, indicating that investors are optimistic about Freshworks' growth prospects in the AI-driven software market.