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FIVN · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Five9, Inc. (FIVN) stock moving?
Five9 beat Q3 estimates, with revenue up 13% to $323.3M versus $319.1M expected, adjusted EPS of $0.82 versus $0.80, subscription revenue up 16% and AI revenue up 91%. The sell-off came from the guidance: Q4 adjusted EPS of $0.88-$0.92 sits below the $0.99 consensus, and FY2026 adjusted EPS was cut to $3.17-$3.21 from $3.22-$3.30 against a $3.25 estimate. Full-year sales guidance was raised to $1.265B-$1.275B, and the company agreed to buy Level AI for about $325M in cash. GAAP net income fell to $14.5M from $18.0M year over year, and adjusted gross margin slipped to 61.7% from 62.8%. The stock closed at $28.12 on Nov 6, down 17.6% from $34.14, on 6.55M shares, roughly four times the typical daily volume in this window. It then recovered to $28.87 on Nov 9 but closed at $27.75 on Nov 10, near the Nov 6 close and below the Nov 6 open of $26.75 only in intraday terms. The Nov 6 intraday low of $25.12 is the nearest reference low. Analysts mostly kept positive ratings but cut targets to roughly $28-$38, while Evercore downgraded to In Line with a $24 target. The price now sits near the middle of the post-report target range, and the trend since Nov 6 is flat to slightly lower.
News behind the analysis
- Five9 Slides as CEO Sees AI Momentum but 2026 Profit View Gets CutFive9 shares fell about 21% on Friday after a Q3 beat, as the company cut its 2026 adjusted EPS guidance and guided Q4 earnings below estimates. AI revenue grew 91%.
- Five9 Lowers FY2026 Adj EPS Guidance from $3.22-$3.30 to $3.17-$3.21 vs $3.25 Est; Raises FY2026 Sales Guidance from $1.260B-$1.272B to $1.265B-$1.275B vs $1.268B EstFull-year adjusted EPS guidance was cut at the midpoint, while full-year sales guidance was raised slightly above consensus.
- Five9 Sees Q4 Adj EPS $0.88-$0.92 vs $0.99 Est; Sees Sales $328.000M-$334.000M vs $330.780M EstFourth-quarter adjusted EPS guidance came in well below the $0.99 consensus, while the sales range brackets the $330.78M estimate.
- Five9 Q3 Adj. EPS $0.82 Beats $0.80 Estimate, Sales $323.303M Beat $319.076M EstimateQ3 revenue grew 13% year-over-year to $323.3 million and adjusted EPS of $0.82 beat estimates. Subscription revenue grew 16% and the LTM subscription dollar-based retention rate was 109%.
- Five9 Agrees To Acquire AI-Native Platform Level AI For ~$325M In CashFive9 signed a definitive merger agreement to buy Level AI for about $325 million in cash to strengthen its AI capabilities.
- Evercore ISI Downgrades Five9 to In LineEvercore ISI cut Five9 from Outperform to In Line after the Q3 report and kept a $24 price target.
- Barclays Maintains Overweight on Five9, Lowers Price Target to $38Barclays kept its Overweight rating and lowered its price target to $38 after the results.
- Truist Securities Adjusts Five9 Price Target to $35 from $40, Keeps Buy RatingTruist kept its Buy rating and cut its price target to $35 from $40 following the report.
- Morgan Stanley Adjusts Five9 Price Target to $34Morgan Stanley raised its price target to $34 from $30 and kept an Equalweight rating after the report.
- Keybanc Maintains Overweight on Five9, Raises Price Target to $34KeyBanc kept its Overweight rating and raised its price target to $34 after the results.
About FIVE9, INC.
Five9 is a San Ramon, California company that sells cloud software businesses use to run their customer service contact centers, covering calls, chat, messaging and AI-powered virtual agents. It is one of the older cloud contact-center specialists, and it is now leaning on AI products, which grew about 78% year over year in Q2 2026, as CEO Amit Mathradas pursues a turnaround.
How it makes money
Most of its revenue comes from recurring subscriptions, mainly per-agent seat licenses, plus usage-based charges such as call minutes and AI interactions. A smaller share comes from professional services like implementation. Q2 2026 revenue was about $312 million, up about 10%. The company guided to roughly $1.26–1.27 billion in revenue for full-year 2026, and its dollar-based subscription retention rate was about 107%.
What usually moves FIVN
- Enterprise IT and customer-service spending
- Adoption of AI agents and the risk that AI reduces the number of human agent seats
- Subscription growth and dollar-based retention
- Large enterprise contract wins and how fast they turn into revenue
- Margin expansion and quarterly guidance