BUZZ-Freshworks falls on weak annual profit forecast

Reuters
02/11
BUZZ-<a href="https://laohu8.com/S/FRSH">Freshworks</a> falls on weak annual profit forecast

** Freshworks Inc FRSH.O shares dip 3.0% to $8.47 in pre-mkt trading

** Software development firm forecasts annual profit below Wall Street estimates, fanning wider concerns about AI's impact on the software industry

** Co forecasts 2026 adj profit of 55-57 cents/share, below estimates of 69 cents/share, per data compiled by LSEG, citing a higher tax rate and its acquisition of FireHydrant

** CEO Dennis Woodside attempts to dispel AI concerns, saying co is taking market share from incumbents like ServiceNow NOW.N and Atlassian TEAM.O; FRSH sees annual rev above estimates

** The average rating of 17 analysts on the stock is 'buy' and their median price target is $16.00, implying a 83% upside from its last close - LSEG

** The co's stock has plunged about 30.9% YTD amid a broad selloff in software shares on concerns over AI disruption, vs a 0.6% fall for the Nasdaq .IXIC

(Reporting by Medha Singh)

((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; X, formerly Twitter: @medhasinghs;))

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