Five9 (NASDAQ:FIVN) Trading 17.8% Higher Following Better-Than-Expected Earnings

by · The Markets Daily

Five9, Inc. (NASDAQ:FIVN – Get Free Report) shares shot up 17.8% during mid-day trading on Friday following a better than expected earnings announcement. The stock traded as high as $18.45 and last traded at $20.2380. 375,995 shares traded hands during trading, a decline of 83% from the average session volume of 2,182,029 shares. The stock had previously closed at $17.18.

The software maker reported $0.80 EPS for the quarter, topping the consensus estimate of $0.79 by $0.01. The business had revenue of $300.28 million during the quarter, compared to analysts’ expectations of $298.21 million. Five9 had a net margin of 2.77% and a return on equity of 10.59%. The firm’s quarterly revenue was up 7.8% compared to the same quarter last year. During the same period last year, the company posted $0.79 earnings per share. Five9 has set its Q1 2026 guidance at 0.100-0.170 EPS and its FY 2026 guidance at 0.860-0.950 EPS.

Five9 declared that its Board of Directors has approved a share repurchase program on Tuesday, November 11th that allows the company to buyback $50.00 million in shares. This buyback authorization allows the software maker to repurchase up to 3.2% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

More Five9 News

Here are the key news stories impacting Five9 this week:

  • Positive Sentiment: Q4 results beat modestly: GAAP EPS $0.80 vs. $0.79 consensus and revenue $300.3M vs. $298.2M consensus; full‑year 2025 revenue hit a record ~$1.1B and revenue grew ~7.8% YoY — shows demand resiliency. Five9 Reports Record Full Year 2025 Revenue
  • Positive Sentiment: Analyst support: Rosenblatt reaffirmed a “buy” rating and set a $26 price target (roughly ~51% above current levels), which can attract momentum buyers and provide a bullish catalyst. Rosenblatt Reaffirms Buy on Five9
  • Neutral Sentiment: Company disclosure & investor materials are available (earnings slide deck and conference call transcript), giving investors detail to reassess assumptions. Five9 Q4 Slide Deck
  • Neutral Sentiment: Full earnings call transcript published for deeper color on strategy (AI pivot / seat pressures discussed), which could clarify near-term growth drivers. Q4 2025 Earnings Call Transcript
  • Neutral Sentiment: Some coverage and previews (Benzinga, Investing.com) discuss whether AI initiatives can offset seat-price pressure — useful background but outcome-dependent. Five9 Earnings Preview
  • Negative Sentiment: Forward guidance disappointed materially: Q1 2026 EPS guide of $0.10–$0.17 vs. ~$0.55 consensus and FY 2026 EPS guide of $0.86–$0.95 vs. ~$2.30 consensus — this large shortfall is the primary headwind pressuring valuation and explains investor caution. Five9 Q4 Results & Guidance
  • Neutral Sentiment: Short-interest report in available feeds shows anomalous data (zeros/NaN) and is not conveying a clear bearish or bullish signal at this time. Market Data

Wall Street Analysts Forecast Growth

FIVN has been the topic of several analyst reports. Morgan Stanley lowered their price objective on Five9 from $30.00 to $26.00 and set an “equal weight” rating on the stock in a research note on Thursday, January 15th. Weiss Ratings reissued a “sell (d+)” rating on shares of Five9 in a research note on Monday, December 29th. Wells Fargo & Company lowered their price target on shares of Five9 from $28.00 to $22.00 and set an “equal weight” rating for the company in a research report on Friday, November 7th. Royal Bank Of Canada reduced their target price on Five9 from $35.00 to $25.00 and set an “outperform” rating on the stock in a report on Friday. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $40.00 price objective on shares of Five9 in a research note on Thursday, December 18th. Twelve research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $30.33.

View Our Latest Analysis on FIVN

Insider Activity

In related news, insider Tiffany N. Meriweather sold 6,852 shares of the stock in a transaction that occurred on Thursday, December 4th. The shares were sold at an average price of $20.35, for a total value of $139,438.20. Following the completion of the transaction, the insider owned 212,126 shares of the company’s stock, valued at $4,316,764.10. This represents a 3.13% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Bryan M. Lee sold 13,219 shares of the company’s stock in a transaction that occurred on Thursday, December 4th. The shares were sold at an average price of $20.35, for a total value of $269,006.65. Following the completion of the transaction, the chief financial officer directly owned 224,269 shares of the company’s stock, valued at $4,563,874.15. This represents a 5.57% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 65,339 shares of company stock valued at $1,330,186. Corporate insiders own 1.60% of the company’s stock.

Institutional Trading of Five9

Hedge funds have recently bought and sold shares of the business. Global Retirement Partners LLC boosted its position in shares of Five9 by 81.7% during the third quarter. Global Retirement Partners LLC now owns 1,228 shares of the software maker’s stock valued at $30,000 after buying an additional 552 shares during the last quarter. Nisa Investment Advisors LLC bought a new position in Five9 during the second quarter valued at approximately $32,000. Quarry LP purchased a new position in shares of Five9 in the third quarter worth $33,000. Rothschild Investment LLC raised its holdings in Five9 by 3,572.0% in the 4th quarter. Rothschild Investment LLC now owns 1,836 shares of the software maker’s stock worth $37,000 after purchasing an additional 1,786 shares in the last quarter. Finally, Advisory Services Network LLC bought a new stake in shares of Five9 during the 3rd quarter valued at $38,000. Institutional investors and hedge funds own 96.64% of the company’s stock.

Five9 Stock Performance

The company has a debt-to-equity ratio of 0.96, a current ratio of 4.61 and a quick ratio of 4.61. The stock has a market capitalization of $1.60 billion, a PE ratio of 55.92, a PEG ratio of 0.85 and a beta of 1.32. The business has a 50 day moving average price of $18.69 and a 200 day moving average price of $21.78.

Five9 Company Profile

(Get Free Report)

Five9, Inc (NASDAQ: FIVN) is a leading provider of cloud-based contact center software designed to help organizations manage customer interactions across voice, email, chat, social media and other digital channels. Its platform offers features such as intelligent routing, analytics, workforce optimization and integrated customer relationship management (CRM) connectors. The company emphasizes AI-driven capabilities, including virtual agents and predictive dialing, to enhance both agent productivity and customer experience.

Founded in 2001 and headquartered in San Ramon, California, Five9 completed its initial public offering in February 2014.

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