Freshworks (NASDAQ:FRSH) Q4 Earnings Outperform with 14.5% Revenue Growth, Guidance Upbeat Amid AI Takeoff

Freshworks (NASDAQ:FRSH) reported Q4 CY2025 revenue of $222.7 million, 14.5% YoY, and $0.14 EPS non-GAAP, 23.8% above consensus, beating both revenue and profit expectations. Q1 CY2026 guidance at the midpoint is $223.5 million, 1.3% above estimates. The results reflect continued strength in employee experience (EX) and AI adoption, with expansion into larger enterprise deals. Management cited a pipeline of $100,000-plus contracts and the cloud transition of Device42 as drivers. New AI agent capabilities and integration of acquisitions are expected to underpin growth. Looking ahead, the company projects disciplined AI monetization and EX expansion, with measured CX growth. Freshworks ( $8.51 ) traded lower after the earnings compared to $8.73 pre-announcement. Key watchpoints include Device42’s cloud rollout, Freddie AI’s impact on ARR and retention, and migration to Freshdesk Omni in CX.