Abstract

Freshworks will release its quarterly results on February 10, 2026 Post Market. The preview consolidates the company’s latest guidance, consensus estimates, and analyst sentiment, focusing on revenue, margins, net income, adjusted EPS, and key growth vectors.

Market Forecast

Based on the most recent company outlook and market expectations, Freshworks’ current-quarter revenue is projected at USD 218.76 million, with a forecast gross profit margin not disclosed, a net profit margin not disclosed, and adjusted EPS estimated at USD 0.11; the year-over-year forecast growth rates are 15.48% for revenue and 11.48% for adjusted EPS. The main business is expected to be driven by subscription services, supported by upselling into larger accounts and continued product adoption across the platform. The most promising segment remains subscription services with a projected revenue base supported by last quarter’s USD 212.98 million and a double-digit YoY growth rate implied by company guidance.

Last Quarter Review

Freshworks delivered last quarter revenue of USD 215.12 million, gross profit margin of 84.68%, GAAP net profit attributable to the parent company of USD -4.68 million, net profit margin of -2.18%, and adjusted EPS of USD 0.16; year-over-year, revenue grew by 15.30% and adjusted EPS grew by 45.45%. Customer momentum was healthy with better-than-expected EBIT of USD 45.18 million, indicating disciplined operating efficiency. Main business highlights: subscription services revenue was USD 212.98 million and professional services revenue was USD 2.13 million, with subscription services accounting for 99.01% of revenue and delivering double-digit YoY growth.

Current Quarter Outlook

Main Business: Subscription Services

Subscription services remain the core revenue engine for Freshworks and are expected to anchor performance this quarter. The company’s platform-led approach, spanning Freshdesk, Freshservice, and CRM offerings, tends to drive multi-product adoption, which supports dollar-based net retention. With prior-quarter subscription revenue at USD 212.98 million and a forecast total revenue of USD 218.76 million, incremental growth likely stems from expansions within existing customers and higher attach rates for add-on modules. The margin profile of subscription services aligns with the company’s strong gross profit margin, suggesting ongoing operating leverage in sales and customer success functions as cohorts mature.

Most Promising Business: Enterprise Upsell within IT Service Management

IT service management and related automation capabilities have reflected resilient demand through cycles as customers prioritize productivity and cost efficiency. Freshservice has historically delivered faster growth within the portfolio due to mid-market and enterprise wins; this quarter, it is poised to benefit from increased migrations and workflow automation initiatives, particularly in environments consolidating vendors. Revenue contributions from this area are embedded within subscription services and, while not broken out, the double-digit YoY trajectory implied by the forecast supports incremental share gains. Key watch points include pipeline conversion in North America and EMEA and adoption of AI-enabled features that can elevate pricing power.

Stock Price Drivers: Profitability Cadence and AI Feature Monetization

The stock’s near-term performance will likely hinge on the cadence of profitability improvements and the company’s ability to monetize AI features across customer support and IT workflows. The last quarter’s EBIT outperformance against estimates indicates cost discipline that could carry into the current quarter, helping to offset any macro-related deal elongation. If adjusted EPS lands near USD 0.11 and revenue near USD 218.76 million, investors will parse gross margin stability relative to the 84.68% baseline and the trajectory of net profit margin as the company targets durable free cash flow. Upside risk centers on accelerated AI adoption and enterprise deal sizes; downside risk includes FX headwinds and potential budget caution in cyclical verticals.

Analyst Opinions

Analyst previews over the past six months reflect a majority cautiously optimistic stance, noting sustainable double-digit revenue growth and improving profitability metrics. Recent notes point to balanced risk-reward, with attention to execution in enterprise cohorts, while acknowledging that valuation embeds expectations for continued margin expansion. The bullish perspective emphasizes the consistency of subscription growth and improving EPS trends; the bearish camp highlights potential deceleration in net new logos and sensitivity to macro cycles. The prevailing view is constructive into the print, focusing on disciplined growth and the potential for AI-led upselling to support 2026 targets.