Freshworks Inc. (FRSH) Surpasses Q3 Earnings and Revenue Estimates

Core Insights - Freshworks Inc. reported quarterly earnings of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.13 per share, and showing an increase from $0.11 per share a year ago, resulting in an earnings surprise of +23.08% [1] - The company achieved revenues of $215.12 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.12% and increasing from $186.57 million year-over-year [2] - Freshworks has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise for the previous quarter was +50%, with actual earnings of $0.18 per share compared to an expected $0.12 per share [1] - The current consensus EPS estimate for the upcoming quarter is $0.09, with projected revenues of $216.01 million, and for the current fiscal year, the EPS estimate is $0.57 on revenues of $825.59 million [7] Stock Performance and Outlook - Freshworks shares have declined approximately 32.5% since the beginning of the year, contrasting with the S&P 500's gain of 15.1% [3] - The company's Zacks Rank is currently 1 (Strong Buy), indicating expectations for the stock to outperform the market in the near future [6] Industry Context - The Internet - Software industry, to which Freshworks belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]