We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
For the to-be-reported quarter, Five9 expects revenues of $316-$322 million and non-GAAP earnings of 77-81 cents per share.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $318.35 million, indicating 11.38% year-over-year growth.
The consensus mark for earnings is pegged at 80 cents per share, unchanged over the past 30 days. This projection suggests 2.56% year-over-year growth.
Five9 surpassed the Zacks Consensus Estimate for earnings in all four trailing quarters, with an average earnings surprise of approximately 5.3%.
Let us see how things have shaped up for the upcoming announcement.
Factors to Note Ahead of FIVN’s Q3 Results
Five9’s artificial intelligence (AI) portfolio is likely to have driven growth in the third quarter, supported by enterprises automating increasingly complex customer interactions. AI revenues jumped 78% year over year to approximately $39 million in the second quarter, accounting for nearly 15% of subscription revenues, up from 9% a year earlier. The June rollout of next-generation Five9 Voice AI Agents, which combines automated resolution with seamless handoffs to human agents, is expected to have encouraged further adoption. Five9 raised its full-year AI revenue growth outlook to at least 60%, highlighting momentum that is likely to have bolstered subscription revenues in the to-be-reported quarter.
Five9’s subscription business is likely to have benefited from the conversion of existing contracted backlog into revenues during the third quarter. Subscription revenues grew 14% year over year in the second quarter, marking the third consecutive quarter of acceleration, while the core contact center-as-a-service (CCaaS) business expanded 7%. Management indicated that revenue guidance for the second half is largely supported by scheduled customer deployments, with essentially no reliance on new business wins. Moreover, trailing 12-month subscription dollar-based retention stood at 107% in June and is expected to improve by approximately one percentage point in the third quarter. These trends should have supported recurring revenues and growth visibility.
Five9’s focus on large enterprise cloud migrations, supported by its strategic alliance with Google Cloud, is expected to have strengthened its competitive position in the third quarter. In the second quarter, the company secured a five-year contract worth approximately $100 million with a Fortune 100 financial services customer through Google Cloud Marketplace, demonstrating the appeal of its platform in regulated environments. The contract will contribute negligible subscription revenues in 2026, but an earlier Fortune 50 customer deployment has continued ramping throughout the year. Contributions from such existing enterprise agreements, alongside stronger partner-led engagement, are likely to have supported Five9’s performance in the to-be-reported quarter.
However, implementation and infrastructure expenses are likely to have weighed on Five9’s third-quarter profitability. In the second quarter, adjusted gross margin contracted to 61% from 63% a year ago, while adjusted EBITDA margin declined to 22% from 24%. The company temporarily expanded professional services capacity to accelerate AI deployments, rising third-party, data-center and public-cloud costs. Five9 is also refreshing its global data centers, with 2026 property and equipment spending expected to remain above last year’s level. Although management anticipates adjusted gross margin improvement in the second half, ongoing implementation and infrastructure investments may have limited near-term margin expansion in the quarter under review.
Five9’s top-line upside in the third quarter may have been constrained by the timing of enterprise deployments and comparatively modest growth in its traditional contact center business. Several customers originally scheduled to ramp in the third and fourth quarters began deploying AI solutions earlier than expected, lifting second-quarter results rather than increasing contracted deal value. Consequently, management left its second-half revenue trajectory largely unchanged despite the stronger second-quarter performance. Meanwhile, core CCaaS revenues increased only 7% year over year in the second quarter, underscoring the contrast with faster-growing AI offerings. These factors are likely to have restricted incremental revenue upside in the to-be-reported quarter.
What Our Model Says About FIVN Stock
Our proven model does not conclusively predict an earnings beat for Five9 this time around. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here, as you can see below.
FIVN currently has an Earnings ESP of 0.00% and a Zacks Rank #3. While a flat Earnings ESP does not necessarily signal an earnings miss, the combination makes it difficult to predict whether the company will deliver an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings in their upcoming releases:
Analog Devices, Inc. (ADI - Free Report) presently has an Earnings ESP of +2.23% and a Zacks Rank #2. ADI’s shares have surged 52.2% year to date. ADI is set to report its third-quarter 2026 results on Nov. 24. You can see the complete list of today’s Zacks #1 Rank stocks here.
Microchip Technology (MCHP - Free Report) has an Earnings ESP of +3.31% and a Zacks Rank #2 at present. MCHP’s shares have gained 19.5% year to date. MCHP is set to report its second-quarter fiscal 2027 results on Nov. 5, 2026.
NVIDIA Corporation (NVDA - Free Report) currently has an Earnings ESP of +3.46% and carries a Zacks Rank #2. NVDA’s shares have returned 8.4% year to date. NVDA is set to report its third-quarter fiscal 2027 results on Nov. 17, 2026.
View the Zacks #1 Rank List
Image: Shutterstock
Five9 Gears Up to Report Q3 Earnings: What's in Store for the Stock?
Key Takeaways
Five9, Inc. (FIVN - Free Report) is scheduled to report its third-quarter 2026 results on Nov. 5, after the closing bell.
For the to-be-reported quarter, Five9 expects revenues of $316-$322 million and non-GAAP earnings of 77-81 cents per share.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $318.35 million, indicating 11.38% year-over-year growth.
The consensus mark for earnings is pegged at 80 cents per share, unchanged over the past 30 days. This projection suggests 2.56% year-over-year growth.
Five9, Inc. Price and EPS Surprise
Five9, Inc. price-eps-surprise | Five9, Inc. Quote
Five9 surpassed the Zacks Consensus Estimate for earnings in all four trailing quarters, with an average earnings surprise of approximately 5.3%.
Let us see how things have shaped up for the upcoming announcement.
Factors to Note Ahead of FIVN’s Q3 Results
Five9’s artificial intelligence (AI) portfolio is likely to have driven growth in the third quarter, supported by enterprises automating increasingly complex customer interactions. AI revenues jumped 78% year over year to approximately $39 million in the second quarter, accounting for nearly 15% of subscription revenues, up from 9% a year earlier. The June rollout of next-generation Five9 Voice AI Agents, which combines automated resolution with seamless handoffs to human agents, is expected to have encouraged further adoption. Five9 raised its full-year AI revenue growth outlook to at least 60%, highlighting momentum that is likely to have bolstered subscription revenues in the to-be-reported quarter.
Five9’s subscription business is likely to have benefited from the conversion of existing contracted backlog into revenues during the third quarter. Subscription revenues grew 14% year over year in the second quarter, marking the third consecutive quarter of acceleration, while the core contact center-as-a-service (CCaaS) business expanded 7%. Management indicated that revenue guidance for the second half is largely supported by scheduled customer deployments, with essentially no reliance on new business wins. Moreover, trailing 12-month subscription dollar-based retention stood at 107% in June and is expected to improve by approximately one percentage point in the third quarter. These trends should have supported recurring revenues and growth visibility.
Five9’s focus on large enterprise cloud migrations, supported by its strategic alliance with Google Cloud, is expected to have strengthened its competitive position in the third quarter. In the second quarter, the company secured a five-year contract worth approximately $100 million with a Fortune 100 financial services customer through Google Cloud Marketplace, demonstrating the appeal of its platform in regulated environments. The contract will contribute negligible subscription revenues in 2026, but an earlier Fortune 50 customer deployment has continued ramping throughout the year. Contributions from such existing enterprise agreements, alongside stronger partner-led engagement, are likely to have supported Five9’s performance in the to-be-reported quarter.
However, implementation and infrastructure expenses are likely to have weighed on Five9’s third-quarter profitability. In the second quarter, adjusted gross margin contracted to 61% from 63% a year ago, while adjusted EBITDA margin declined to 22% from 24%. The company temporarily expanded professional services capacity to accelerate AI deployments, rising third-party, data-center and public-cloud costs. Five9 is also refreshing its global data centers, with 2026 property and equipment spending expected to remain above last year’s level. Although management anticipates adjusted gross margin improvement in the second half, ongoing implementation and infrastructure investments may have limited near-term margin expansion in the quarter under review.
Five9’s top-line upside in the third quarter may have been constrained by the timing of enterprise deployments and comparatively modest growth in its traditional contact center business. Several customers originally scheduled to ramp in the third and fourth quarters began deploying AI solutions earlier than expected, lifting second-quarter results rather than increasing contracted deal value. Consequently, management left its second-half revenue trajectory largely unchanged despite the stronger second-quarter performance. Meanwhile, core CCaaS revenues increased only 7% year over year in the second quarter, underscoring the contrast with faster-growing AI offerings. These factors are likely to have restricted incremental revenue upside in the to-be-reported quarter.
What Our Model Says About FIVN Stock
Our proven model does not conclusively predict an earnings beat for Five9 this time around. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here, as you can see below.
FIVN currently has an Earnings ESP of 0.00% and a Zacks Rank #3. While a flat Earnings ESP does not necessarily signal an earnings miss, the combination makes it difficult to predict whether the company will deliver an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings in their upcoming releases:
Analog Devices, Inc. (ADI - Free Report) presently has an Earnings ESP of +2.23% and a Zacks Rank #2. ADI’s shares have surged 52.2% year to date. ADI is set to report its third-quarter 2026 results on Nov. 24. You can see the complete list of today’s Zacks #1 Rank stocks here.
Microchip Technology (MCHP - Free Report) has an Earnings ESP of +3.31% and a Zacks Rank #2 at present. MCHP’s shares have gained 19.5% year to date. MCHP is set to report its second-quarter fiscal 2027 results on Nov. 5, 2026.
NVIDIA Corporation (NVDA - Free Report) currently has an Earnings ESP of +3.46% and carries a Zacks Rank #2. NVDA’s shares have returned 8.4% year to date. NVDA is set to report its third-quarter fiscal 2027 results on Nov. 17, 2026.