Freshworks

FRSH · NASDAQ

$14.85+$0.72 (+5.10%)TodayMarket closed · Oct 20, 7:30 PM ET

Prev close $14.13

FRSH analyst rating

BuyConsensus of 14 analysts over the last 12 months. 57% rate it a buy.

Strong buy0
Buy8
Hold6
Underperform0
Sell0

12-month price target · 18 analysts

Average $14.79 (−0.4% downside)

Low: $10.10
Now: $14.85
High: $26.25

Upgrades and downgrades

The latest rating actions, newest first

FRSH analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Keybanc	Sep 14, 2026	Initiates	Overweight	$18.00	63%
UBS	Aug 5, 2026	Maintains	Buy	$11.00 → $14.00	48%
Cantor Fitzgerald	Aug 5, 2026	Maintains	Overweight	$12.00 → $15.00	54%
Piper Sandler	Aug 5, 2026	Maintains	Neutral	$10.00 → $12.00	73%
Guggenheim	Jul 23, 2026	Initiates	Buy	$25.00	59%
Morgan Stanley	May 11, 2026	Maintains	Equal-Weight	$15.00 → $13.00	54%
Jefferies	Feb 23, 2026	Downgrade	Buy → Hold	$20.00 → $8.00	60%
Wells Fargo	Feb 11, 2026	Maintains	Equal-Weight	$13.00 → $10.00	56%
Citizens	Feb 11, 2026	Maintains	Market Outperform	$27.00 → $16.00	48%
Cantor Fitzgerald	Feb 11, 2026	Maintains	Overweight	$15.00 → $12.00	54%

The case for and against

Updated Oct 14, 2026

Bull case

Freshworks is well positioned because its Employee Experience platform is taking share in the underserved middle market, where enterprise tools are too complex and SMB products are too limited, and EX now represents about 59% of ARR while growing in the mid-20s% with a path to ~$925M by 2028. The expanding suite across ITSM, ITAM, ITOM, and ESM is driving cross-sell, with more than 60% of new bookings coming from expansion and EX NDR at 111%, while Freddy AI adds another lever through Copilot attach rates above 70% on larger deals and multiple monetization paths. Fundamental strength is reinforced by a favorable operating model, as non-GAAP margins are guided from 13.8% in 2024 to 23.3% in FY26 and adj. free cash flow margins are expected to reach 31.6% by 2028, all while the stock still trades at a discount to peers.

Bear case

Freshworks is facing a negative fundamental setup because its ease-of-use moat is increasingly vulnerable to both AI-native challengers and larger incumbents, which could pressure renewal uplifts, cause seat compression, and reduce growth durability. Its CX business is especially exposed, representing 41% of ARR and growing only in low single digits, while AI monetization remains weak with only one in five EX customers paying for Copilot after more than a year of selling it and about $25M in incremental AI ARR at the end of 2025. Although management targets a 2028 Rule of 50 profile with 16% revenue growth and 32% to 34% adjusted FCF margin, investors still face risk from soft bookings growth of 9.1%, intensifying competition in the middle market, and a valuation that may not be justified if AI and ITSM headwinds persist.

Information on this page is provided for informational purposes only and is not a recommendation to buy, sell or hold any security. Investing involves risk, including possible loss of principal. Market data is delayed at least 15 minutes and is provided without warranty. Analyst ratings, price targets and company data come from third-party sources. Past performance does not guarantee future results.