Freshworks(US:FRSH) Yahoo Finance·2026-02-11 19:25Core Viewpoint - Freshworks' stock experienced a significant decline of 14.8% following the release of its fourth-quarter results, despite beating sales and earnings expectations, primarily due to weaker forward guidance [1][2][5]. Financial Performance - Freshworks reported non-GAAP earnings per share of $0.14 on revenue of $222.7 million for Q4, exceeding Wall Street's expectations by $0.03 per share and sales by approximately $3.9 million [2]. - Year-over-year revenue growth for Q4 was 14.4%, with per-share earnings consistent with the previous year [2]. Forward Guidance - For the current quarter, Freshworks anticipates revenue between $222 million and $225 million, indicating a year-over-year growth of approximately 13.9% at the midpoint [3]. - For the full year, management projects sales between $952 million and $960 million, reflecting an annual growth of around 14% at the midpoint [4]. - Adjusted earnings per share for the year are expected to be between $0.55 and $0.57, a decline from $0.66 per share last year [4]. Market Sentiment - Despite raising its full-year sales target from previous guidance, the anticipated decline in adjusted earnings per share has led to lower valuation multiples being assigned to Freshworks' stock [5]. - The company's forward guidance has not been strong enough to generate positive investor sentiment, contributing to the stock's valuation contraction [5].