Acquisition Strategy Initiated: Freshworks CEO Dennis Woodside announced that the company is exploring acquisitions in AI and employee experience software, backed by over $800 million in cash reserves, aiming to drive revenue growth in the coming years, indicating a proactive stance towards M&A in the tech sector.
Market Environment Analysis: Despite uncertainties from U.S. tariffs, global M&A volumes rose 39% to $4.3 trillion in 2025, reflecting that the adoption of artificial intelligence is fueling deal-making activity across the technology industry.
Target Market Positioning: Freshworks has engaged in discussions with potential partners from Israel, Europe, the U.S., and India, with the CEO mentioning conversations with about 50 companies over the past six months, showcasing its intent to pursue acquisitions on a global scale.
Ongoing Investment and Growth Outlook: Freshworks forecasts double-digit revenue growth over the next three years and, following its acquisition of FireHydrant, plans to continue hiring in India for engineering, product development, and design roles to support its expansion strategy.
FRSH
$12.47+Infinity%1D
Analyst Views on FRSH
Wall Street analysts forecast FRSH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FRSH is 19.09 USD with a low forecast of 13.00 USD and a high forecast of 27.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
Wall Street analysts forecast FRSH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FRSH is 19.09 USD with a low forecast of 13.00 USD and a high forecast of 27.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 12.470
Low
13.00
Averages
19.09
High
27.00
Current: 12.470
Low
13.00
Averages
19.09
High
27.00
Piper Sandler
Overweight
downgrade
$25 -> $20
2025-11-07
Reason
Piper Sandler
Price Target
$25 -> $20
2025-11-07
downgrade
Overweight
Reason
Piper Sandler lowered the firm's price target on Freshworks to $20 from $25 on lower estimates, factoring in out-year guidance, while keeping an Overweight rating on the shares. The firm notes the company executed on its vision to drive an efficient and durable growth model, posting Q3 revenue growth of 15% year-over-year coupled with a 27% free cash flow margin, exceeding Rule of 40 status for the fifth consecutive quarter.
Canaccord
David Hynes
Buy
downgrade
$23 -> $19
2025-11-06
Reason
Canaccord
David Hynes
Price Target
$23 -> $19
2025-11-06
downgrade
Buy
Reason
Canaccord analyst David Hynes lowered the firm's price target on Freshworks to $19 from $23 and keeps a Buy rating on the shares. The firm updated its model following Q3 results and said its improving growth profile outlined at its recent anlayst day should be driven by a combination of a favorable mix shift, with the faster growing IT/ EX making up a larger share of revenue, continued progress moving up-market and expanding capabilities, and ramping AI attach, which should contribute to growth on a consumption basis as usage scales.
Wells Fargo
Ryan MacWilliams
Equal Weight
initiated
$13
2025-09-30
Reason
Wells Fargo
Ryan MacWilliams
Price Target
$13
2025-09-30
initiated
Equal Weight
Reason
Wells Fargo analyst Ryan MacWilliams initiated coverage of Freshworks with an Equal Weight rating and $13 price target. The company offered a "reasonable" revenue target of $845M for the EX segment at its 2025 Investor Day and the firm has been "pleased with the consistent growth in that offering," but it remains cautious on the company's CX segment, the analyst tells investors.
Baird
Neutral
downgrade
$18 -> $16
2025-09-15
Reason
Baird
Price Target
$18 -> $16
2025-09-15
downgrade
Neutral
Reason
Baird lowered the firm's price target on Freshworks to $16 from $18 and keeps a Neutral rating on the shares. The firm updated its model following its investor day conference.
About FRSH
Freshworks Inc. is a software company. Its software-as-a-service (SaaS) solutions fall into two product families: Customer Experience (CX) and Employee Experience (EX). CX products include Freshdesk, Freshchat, Freshsales, and Freshmarketer. EX products include Freshservice, Freshservice for Business Teams, and Device42. The Company's generative artificial intelligence (AI) solutions, Freddy AI Agent and Freddy AI Copilot, further enhance the customer and employee experience.
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.
