Five9 Faces Investigation Amid Strong Q1 Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 05 2026
0mins
Source: PRnewswire
Five9 Inc. saw its stock price drop by 11.17% as it crossed below the 5-day SMA, despite the broader market's positive performance with the Nasdaq-100 up 1.85% and the S&P 500 up 1.30%.
The decline comes amid an investigation by Halper Sadeh LLC into the fiduciary duties of Five9 executives, which could lead to governance reforms if any breaches are confirmed. This investigation highlights concerns regarding transparency and accountability within the company, potentially impacting shareholder confidence and future performance.
Despite this setback, Five9 recently reported strong Q1 earnings, exceeding expectations with a revenue of $305 million and a significant increase in AI revenue. The company also announced an expanded share repurchase plan, indicating management's confidence in its future growth.
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Analyst Views on FIVN
Wall Street analysts forecast FIVN stock price to rise
20 Analyst Rating
15 Buy
5 Hold
0 Sell
Strong Buy
Current: 22.830
Low
25.00
Averages
35.50
High
59.00
Current: 22.830
Low
25.00
Averages
35.50
High
59.00
About FIVN
Five9, Inc. helps organizations to create hyper-personalized and artificial intelligence (AI)-driven customer experiences. The Company's Intelligent CX Platform, powered by Five9 Genius AI, delivers a suite of applications that enable a range of customer service, sales, and marketing functions. It delivers an end-to-end cloud software solution for contact centers. The Company's solution allows simultaneous management and optimization of customer interactions across voice, chat, email, Web, social media and mobile channels, either directly or through its application programming interfaces. The Company's product categories include Core Cloud, AI & Automation, Employee Engagement and Customer Engagement. Its Core Cloud products include Global Voice, Agent Desktop Plus, Supervisor Plus, CRM Integrations and UC Integrations. Its AI & Automation products include Artificial Intelligence, AI Agents, AI Insights, AI Knowledge, GenAI Studio, Workflow Automation and Reporting & Analytics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Halper Sadeh LLC Investigates Five9 Executives' Fiduciary Duties
- Shareholder Rights Protection: Halper Sadeh LLC encourages Five9 shareholders to contact the firm to discuss their rights and options at no cost, aiming to enhance shareholder engagement in corporate governance.
- Investigation Context: The law firm is investigating whether Five9 executives breached their fiduciary duties to shareholders, which, if confirmed, could lead to governance reforms and the return of funds to the company.
- Legal Relief Options: Long-term shareholders of Five9 may seek court-approved financial incentive awards or other relief, indicating a pressing need for improved transparency and accountability in corporate governance.
- Importance of Shareholder Participation: Shareholder involvement can drive improvements in company policies and oversight mechanisms, thereby enhancing management effectiveness and shareholder value, with Halper Sadeh LLC having a track record of successful reforms in this area.
See More
Five9 Recognized in CRN AI 100 for Third Consecutive Year
- Industry Recognition: Five9 has been named to the CRN AI 100 list in the Software category for the third consecutive year, showcasing its leadership in enterprise AI innovation and reinforcing its competitive edge in the rapidly evolving customer experience market.
- Customer Success Stories: Healthcare company Exact Sciences has leveraged Five9's AI technology to achieve a 45% call containment rate and 60% patient time savings, significantly enhancing the efficiency of patient support while reducing friction in high-volume interactions.
- Global Expansion: Five9 continues to expand its Five9 Fusion ecosystem through partnerships with companies like Salesforce, ServiceNow, and Epic, aiming to enhance the personalization and seamlessness of customer experiences by connecting AI, data, and workflows.
- Strategic Vision: CEO Amit Mathradas stated that AI is redefining the future of customer experience, with the company's strategic focus on providing AI-powered solutions to partners to drive measurable business outcomes for customers worldwide.
See More
Five9 Exceeds Q1 2026 Earnings Expectations
- Earnings Beat: Five9 reported Q1 revenue of $305 million, a 9% year-over-year increase that surpassed market expectations, demonstrating strong performance in revenue growth and profitability, thereby reinforcing its leadership position in the cloud communications market.
- AI Revenue Surge: AI revenue grew by 68% year-over-year, reaching an annual run rate of over $125 million, indicating significant progress in AI-driven customer experiences, with expectations for continued revenue growth in the future.
- Expanded Share Repurchase Plan: The company repurchased $10 million in shares during Q1 and plans to accelerate the repurchase of the remaining $90 million under the current authorization, reflecting management's confidence in future performance, while the newly approved $200 million repurchase plan enhances shareholder returns.
- 2026 Guidance Raised: The CFO raised the guidance for 2026 total revenue and non-GAAP EPS, with a midpoint of $1.26 billion for total revenue and $3.26 for non-GAAP EPS, reflecting confidence in double-digit growth in the second half of the year.
See More
FIVE9 STOCK RISES 16.5% IN PREMARKET TRADING FOLLOWING Q1 RESULTS AND SHARE BUYBACK ANNOUNCEMENT
- Stock Performance: Shares of the company increased by 16.5% in pre-market trading following the release of Q1 results.
- Share Buyback Announcement: The company has announced a share buyback program in response to the positive performance and results.
See More
Next Week's Earnings Reports Could Yield Significant Gains
- Five9 Earnings Outlook: Five9 boasts a remarkable 98% earnings beat rate, with an expected average post-earnings increase of over 3%, providing a crucial rebound opportunity after a 23% decline in 2026 due to AI concerns.
- Analyst Optimism: Wall Street analysts have a buy rating for Five9, with a price target suggesting over 77% upside in the next 12 months, reflecting strong market confidence in its future performance.
- Meta Platforms Performance: Meta Platforms has an 89% earnings beat rate, with an anticipated average post-earnings rise of about 2.1%, and despite being near flat in 2026, analysts' price targets indicate over 26% upside potential.
- Wingstop Rebound Potential: Wingstop has a 79% earnings beat rate, with an expected post-earnings rally of 3.7%, and although its stock has fallen over 22% this year, analysts remain bullish with a price target suggesting approximately 54% upside.
See More
FIVE9, INC.: BARCLAYS LOWERS TARGET PRICE FROM $25 TO $22
- Barclays Target Price Adjustment: Barclays has reduced its target price for Five9 Inc. from $25 to $22.
- Market Impact: This adjustment reflects Barclays' updated outlook on Five9's performance in the market.
See More
Halper Sadeh LLC Investigates Five9 Executives' Fiduciary Duties
- Shareholder Rights Protection: Halper Sadeh LLC encourages Five9 shareholders to contact the firm to discuss their rights and options at no cost, aiming to enhance shareholder engagement in corporate governance.
- Investigation Context: The law firm is investigating whether Five9 executives breached their fiduciary duties to shareholders, which, if confirmed, could lead to governance reforms and the return of funds to the company.
- Legal Relief Options: Long-term shareholders of Five9 may seek court-approved financial incentive awards or other relief, indicating a pressing need for improved transparency and accountability in corporate governance.
- Importance of Shareholder Participation: Shareholder involvement can drive improvements in company policies and oversight mechanisms, thereby enhancing management effectiveness and shareholder value, with Halper Sadeh LLC having a track record of successful reforms in this area.
See More
Five9 Recognized in CRN AI 100 for Third Consecutive Year
- Industry Recognition: Five9 has been named to the CRN AI 100 list in the Software category for the third consecutive year, showcasing its leadership in enterprise AI innovation and reinforcing its competitive edge in the rapidly evolving customer experience market.
- Customer Success Stories: Healthcare company Exact Sciences has leveraged Five9's AI technology to achieve a 45% call containment rate and 60% patient time savings, significantly enhancing the efficiency of patient support while reducing friction in high-volume interactions.
- Global Expansion: Five9 continues to expand its Five9 Fusion ecosystem through partnerships with companies like Salesforce, ServiceNow, and Epic, aiming to enhance the personalization and seamlessness of customer experiences by connecting AI, data, and workflows.
- Strategic Vision: CEO Amit Mathradas stated that AI is redefining the future of customer experience, with the company's strategic focus on providing AI-powered solutions to partners to drive measurable business outcomes for customers worldwide.
See More
Five9 Exceeds Q1 2026 Earnings Expectations
- Earnings Beat: Five9 reported Q1 revenue of $305 million, a 9% year-over-year increase that surpassed market expectations, demonstrating strong performance in revenue growth and profitability, thereby reinforcing its leadership position in the cloud communications market.
- AI Revenue Surge: AI revenue grew by 68% year-over-year, reaching an annual run rate of over $125 million, indicating significant progress in AI-driven customer experiences, with expectations for continued revenue growth in the future.
- Expanded Share Repurchase Plan: The company repurchased $10 million in shares during Q1 and plans to accelerate the repurchase of the remaining $90 million under the current authorization, reflecting management's confidence in future performance, while the newly approved $200 million repurchase plan enhances shareholder returns.
- 2026 Guidance Raised: The CFO raised the guidance for 2026 total revenue and non-GAAP EPS, with a midpoint of $1.26 billion for total revenue and $3.26 for non-GAAP EPS, reflecting confidence in double-digit growth in the second half of the year.
See More
FIVE9 STOCK RISES 16.5% IN PREMARKET TRADING FOLLOWING Q1 RESULTS AND SHARE BUYBACK ANNOUNCEMENT
- Stock Performance: Shares of the company increased by 16.5% in pre-market trading following the release of Q1 results.
- Share Buyback Announcement: The company has announced a share buyback program in response to the positive performance and results.
See More
Next Week's Earnings Reports Could Yield Significant Gains
- Five9 Earnings Outlook: Five9 boasts a remarkable 98% earnings beat rate, with an expected average post-earnings increase of over 3%, providing a crucial rebound opportunity after a 23% decline in 2026 due to AI concerns.
- Analyst Optimism: Wall Street analysts have a buy rating for Five9, with a price target suggesting over 77% upside in the next 12 months, reflecting strong market confidence in its future performance.
- Meta Platforms Performance: Meta Platforms has an 89% earnings beat rate, with an anticipated average post-earnings rise of about 2.1%, and despite being near flat in 2026, analysts' price targets indicate over 26% upside potential.
- Wingstop Rebound Potential: Wingstop has a 79% earnings beat rate, with an expected post-earnings rally of 3.7%, and although its stock has fallen over 22% this year, analysts remain bullish with a price target suggesting approximately 54% upside.
See More
FIVE9, INC.: BARCLAYS LOWERS TARGET PRICE FROM $25 TO $22
- Barclays Target Price Adjustment: Barclays has reduced its target price for Five9 Inc. from $25 to $22.
- Market Impact: This adjustment reflects Barclays' updated outlook on Five9's performance in the market.
See More
