Freshworks Sees Growth Despite Conference Cancellation
Freshworks Conference Cancellation: Freshworks (FRSH) canceled its appearance at the UBS Global Technology and AI conference due to a family matter and illness affecting executives.
Stock Movement: Despite the cancellation, Freshworks' stock rose by 2.8%.
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- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, reflecting varying market perspectives that could influence investor decisions and market trends.
- Overview of Updates: The rating changes include upgrades, downgrades, and new initiations, showcasing analysts' keen responses to market dynamics, which may lead to short-term volatility in the affected stocks.
- Investor Considerations: Investors considering purchasing VERX stock should pay attention to the latest insights from analysts to make more informed investment decisions, especially amid increasing market uncertainties.
- Market Impact Analysis: The adjustments in analysts' ratings not only affect the performance of individual stocks but may also influence overall market sentiment, prompting investors to closely monitor these changes to seize investment opportunities.
- Rating Downgrade: Piper Sandler downgraded Adobe, Freshworks, and Vertex from Overweight to Neutral, cutting their price targets from $479, $20, and $32 to $330, $12, and $20 respectively, reflecting ongoing pessimism in the software sector.
- Growth Slowdown Forecast: Analysts predict that 2026 will mark the fifth consecutive year of decelerating growth rates for software, citing AI efficiencies as a pressure on headcount growth, which poses significant challenges for software companies that sell on a per-seat basis.
- Price Target Adjustments: In addition to the three companies, Piper Sandler also lowered price targets for several others including Amplitude and Asana, indicating a cautious outlook for the entire software industry amid continued investor apathy.
- Future Outlook: Despite the negative sentiment surrounding software, analysts remain bullish on Microsoft and ServiceTitan, viewing Microsoft as a top play on AI adoption and highlighting ServiceTitan's multiple growth drivers as potential revenue upside in FY27.
- Acquisition Strategy Initiated: Freshworks CEO Dennis Woodside announced that the company is exploring acquisitions in AI and employee experience software, backed by over $800 million in cash reserves, aiming to drive revenue growth in the coming years, indicating a proactive stance towards M&A in the tech sector.
- Market Environment Analysis: Despite uncertainties from U.S. tariffs, global M&A volumes rose 39% to $4.3 trillion in 2025, reflecting that the adoption of artificial intelligence is fueling deal-making activity across the technology industry.
- Target Market Positioning: Freshworks has engaged in discussions with potential partners from Israel, Europe, the U.S., and India, with the CEO mentioning conversations with about 50 companies over the past six months, showcasing its intent to pursue acquisitions on a global scale.
- Ongoing Investment and Growth Outlook: Freshworks forecasts double-digit revenue growth over the next three years and, following its acquisition of FireHydrant, plans to continue hiring in India for engineering, product development, and design roles to support its expansion strategy.
- Strategic Acquisition: Freshworks has signed a definitive agreement to acquire FireHydrant, which will integrate IT Service Management with IT Operations Management, expected to enhance service efficiency and customer satisfaction.
- Technology Integration: FireHydrant's AI-powered incident management software will combine with Freshservice to provide a unified ServiceOps solution aimed at reducing incident response times and improving service reliability.
- Market Expansion: This acquisition will drive Freshworks' expansion into higher-end markets, further solidifying its position in the IT Service Management sector and attracting more large clients.
- Financial Impact: The acquisition is expected to close in Freshworks' first fiscal quarter of 2026, aligning with the company's long-term growth strategy and supporting overall financial performance.
Freshworks Conference Cancellation: Freshworks (FRSH) canceled its appearance at the UBS Global Technology and AI conference due to a family matter and illness affecting executives.
Stock Movement: Despite the cancellation, Freshworks' stock rose by 2.8%.
Analyst Sentiment: Over the past three months, 7 analysts have provided mixed ratings on Freshworks, with 2 bullish, 2 somewhat bullish, and 3 indifferent ratings, reflecting a shift in sentiment compared to previous months.
Price Target Adjustments: Analysts have set an average 12-month price target of $19.43 for Freshworks, down from $22.67, with a high estimate of $27.00 and a low of $13.00.
Financial Performance: Freshworks reported a revenue growth rate of 15.3% over the last three months, with a net margin of -2.18%, indicating strong profitability management despite challenges in return on equity (ROE) at -0.51%.
Debt Management: The company's debt-to-equity ratio of 0.05 is below industry norms, suggesting a solid financial structure, while its return on assets (ROA) of -0.33% indicates effective asset utilization.








