Five9, Inc., together with its subsidiaries, provides intelligent cloud software for contact centers in the United States and internationally. It offers CX platform that delivers a suite of applications, which enables the breadth of customer service, sales, and marketing functions. The company's platform comprises AI agents, agent assist, workflow automation, AI insights, AI summaries, workforce engagement management, and revenue execution, as well as allows simultaneous management and optimization of customer interactions across voice, chat, email, web, social media and mobile channels, through our application programming interfaces. It also matches each customer interaction with an agent resource and delivers customer data to the agent in real-time through integrations with adjacent enterprise applications, such as CRM software, to optimize customer experience and enhance agent productivity, as well as offers software-as-a-service business model. The company serves customers in various industries, such as banking and financial services, business process outsourcers, retail, healthcare, technology, and education. Five9, Inc. was incorporated in 2001 and is headquartered in San Ramon, California.
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Five9 Shares Surge 17.7% After Beating Q2 Estimates and Raising Revenue Guidance
Five9 shares jumped 17.7% after the cloud contact center provider reported second-quarter results that beat Wall Street expectations and raised its full-year revenue guidance. The company posted adjusted earnings of $0.70 per share on revenue of $312.4 million, with revenue growing 10.3% year-over-year. Management lifted its full-year revenue outlook to $1.27 billion at the midpoint and forecast next-quarter sales above consensus, while reiterating its full-year profit guidance. The stock closed at $33.98, up 19.8% from the previous close.
Five9 AI Revenue Surges 78%, Raises Full-Year AI Growth Outlook to at Least 60%
Five9 reported second-quarter revenue of $312 million, up 10% year-over-year and above the high end of guidance, while AI revenue accelerated to 78% growth, reaching approximately $39 million in the quarter and representing an annual run rate of over $150 million. The company raised its full-year 2026 AI growth outlook to at least 60%, up from a prior outlook of more than 40%, and secured a Fortune 100 financial services customer win with approximately $100 million in total contract value, expected to ramp to $25 million in subscription annual recurring revenue when fully deployed. Subscription revenue grew 14% year-over-year, marking a third consecutive quarter of acceleration, and the LTM subscription dollar-based retention rate remained steady at 107%. Adjusted gross margin declined to 61% from 63% a year ago, and adjusted EBITDA was $70 million, or 22% of revenue, compared to $68 million, or 24% of revenue, in the prior-year period. Full-year 2026 total revenue guidance was raised to a midpoint of $1.266 billion, while non-GAAP EPS guidance remained unchanged at a midpoint of $3.26 per diluted share.
Five9 to Join S&P SmallCap 600, Replacing Two Harbors Investment
Five9 will join the S&P SmallCap 600 index, replacing Two Harbors Investment effective prior to the opening of trading on Monday, August 3. The change follows CrossCountry Mortgage's pending acquisition of Two Harbors Investment, which is expected to close soon pending final conditions. Five9, trading under ticker FIVN, will be added to the Information Technology sector, while Two Harbors Investment, ticker TWO, will be removed from the Financials sector.
Five9 Offers Better Growth Opportunity Than SoundHound in Customer AI, Zacks Says
Five9 offers a more compelling growth opportunity than SoundHound AI in the customer AI market, according to a Zacks Investment Research analysis. SoundHound's first-quarter 2026 revenue rose 52% year over year, with its core Automotive and IoT AI business up 88% excluding acquisitions, and its pending LivePerson acquisition is expected to create a long-term revenue opportunity of roughly $500 million. Five9's first-quarter 2026 revenue increased 9% to $305 million, while adjusted EBITDA rose 41% and free cash flow climbed 42%, supported by a new $200 million share repurchase authorization. SoundHound trades at 10.49 times forward sales, well above the sector average of 6.18 times, while Five9 trades at just 1.33 times forward sales despite generating positive earnings and cash flows. Five9 shares have gained 15.3% year to date, outperforming SoundHound's 38.2% decline, and analysts expect Five9's 2026 earnings of $3.26 per share to grow 10.1%, while SoundHound is projected to post a loss of 15 cents per share.
StockStory picks Freshworks and PTC as top software stocks, flags Five9 as a sell
StockStory highlights Freshworks and PTC as two software stocks with promising prospects while recommending investors avoid Five9. Freshworks, with a market cap of $2.93 billion, is favored for its 25.8% annual revenue growth over five years, 85% gross margin, and 25.7% free cash flow margin. PTC, valued at $14.28 billion, is noted for 21% average billings growth, an 84.7% gross margin, and a 38.7% operating margin. In contrast, Five9, with a $1.90 billion market cap, is flagged for subpar 9.4% billings growth, slowing demand, and a lower 55.5% gross margin.
Five9 Stock Appears Fairly Priced After Voice AI Agents Launch
Five9 shares appear fairly valued following the launch of its new Voice AI Agents, with the stock trading near its modeled fair price-to-earnings ratio. The company's P/E of about 31.3 times sits above the software industry average of 28.1 times but well below the peer group average of 63.8 times, and close to its estimated fair P/E of around 32.7 times. The stock has declined roughly 87.7% over the past five years, and while the AI product launch may support future growth expectations, a law firm investigation into potential past disclosures adds risk. Community scenarios show a wide range of views, with a bull case suggesting the stock could be 44% undervalued and a bear case indicating it may be 17% overvalued. Overall, the current valuation implies the market is roughly aligning the share price with the company's earnings power and risk profile.
Five9 Outshines Zoom Communications as Superior Value Stock
Five9 holds a stronger value proposition than Zoom Communications based on earnings outlook and valuation metrics. Five9 carries a Zacks Rank of #1 (Strong Buy) while Zoom is ranked #3 (Hold), indicating a more positive earnings estimate trend for Five9. Five9 trades at a forward P/E of 6.54 compared to Zoom's 14.24, and its PEG ratio of 0.40 is significantly lower than Zoom's 3.21. Additionally, Five9's price-to-book ratio of 1.97 is below Zoom's 2.54, contributing to Five9's Value grade of A versus Zoom's C.
Five9 and StoneCo Appear Undervalued Based on Key Metrics
Five9 and StoneCo are showing signs of being undervalued according to several valuation metrics. Five9 holds a Zacks Rank #1 (Strong Buy) and a Value grade of A, with a forward P/E of 8.65 compared to its industry average of 25.50. Its PEG ratio is 0.65 versus the industry's 0.91, and its P/B ratio is 2.85 against an industry average of 4.39. StoneCo, rated Zacks Rank #2 (Buy) with a Value Score of A, trades at a forward P/E of 11.19 and a PEG of 0.37, while its industry averages are 25.50 and 0.91 respectively. Both companies also exhibit attractive P/S and P/CF ratios relative to their industry peers, reinforcing the view that they may be undervalued at current levels.
Kuehn Law Investigates Five9 Officers and Directors for Breach of Fiduciary Duties
Kuehn Law is investigating whether certain officers and directors of Five9 breached their fiduciary duties to shareholders. The investigation follows a federal securities lawsuit alleging that insiders caused the company to misrepresent or fail to disclose that its net new business was hampered by macroeconomic issues, that it was in a challenging bookings quarter due to sales execution problems, and that statements about a positive inflection in dollar-based retention rate lacked a reasonable basis. Shareholders who purchased Five9 stock prior to February 21, 2024 are encouraged to contact the law firm.
AI Adoption in Customer Experience Hits 92%, Yet Consumer Trust Still Depends on Human Support
A new Five9 report finds that 92% of organizations have implemented or piloted AI in customer service, but consumer trust remains a critical challenge. While 80% of consumers are willing to use AI-powered customer service, two-thirds still prefer speaking with a human. The study, based on a survey of 3,000 consumers and 600 decision-makers across the U.S., U.K., and Germany, shows that 71% of consumers consider it very or extremely important to know when they are interacting with an AI agent. Additionally, 83% of consumers say they still have to repeat themselves at least sometimes after being transferred from AI to a human, even though nearly all decision-makers claim their organization preserves context during such handoffs. The report also highlights that 84% of organizations are still transitioning from on-premises infrastructure to cloud-based systems, underscoring the infrastructure challenges behind AI execution.
Nucleus Research names Five9, Genesys, NiCE, RingCentral, and Talkdesk as CCaaS leaders in 2026 Value Matrix
Nucleus Research has released its 2026 CCaaS Technology Value Matrix, naming Five9, Genesys, NiCE, RingCentral, and Talkdesk as Leaders for excelling in both functionality and usability. The report evaluates contact-center-as-a-service platforms on their ability to improve service outcomes, agent productivity, and operational efficiency across voice, digital, and self-service channels. Expert vendors with deep specialized functionality include Amazon Connect, Content Guru, and Twilio, while Accelerators focused on usability and quick deployment are 8x8, Zendesk, and Zoom. Core Providers offering essential reliable functionalities are Avaya, Cisco, Sprinklr, and Fi. The research highlights that organizations achieve the greatest value when automation and customer context are embedded directly into workflows, with AI investments accelerating in areas such as virtual agents, agent assistance, and automated quality scoring.
Five9 launches new Voice AI Agents for agentic self-service
Five9 has launched a new release of Voice AI Agents, a next-generation agentic self-service solution built on a purpose-built architecture to move beyond scripted bots and legacy IVR systems. The new agents are designed to reason, take action, and resolve customer requests with human-like conversations, real-time responsiveness, and seamless AI-human collaboration on the Five9 Intelligent CX Platform. The release includes AI Agent Studio, a unified environment for building, testing, deploying, and monitoring the agents, and features such as low-latency streaming, multilingual support, secure tool calling for real-time actions, and enterprise-grade governance with built-in guardrails and LLM blinding. Early adopter PODS reported exceeding containment rate targets and reducing handle times, with expectations to handle more than 100,000 service calls this year. The announcement was made at Customer Contact Week in Las Vegas.
Asana, Commerce, and Five9 Stocks Fall Amid AI-Driven Software Selloff
Shares of Asana, Commerce, and Five9 declined in afternoon trading as a broader selloff hit the software sector, driven by fears that AI agents will erode traditional subscription models. Asana fell 4.7%, Commerce dropped 5.1%, and Five9 slid 5.6%, with the weakness compounded by a nearly 6% decline in Alphabet and a slip in Microsoft. The market's anxiety was reinforced by Accenture's near-20% single-day drop the previous week after it cut its growth outlook and cited AI compressing demand for IT services. Five9, which is down 1.3% year-to-date and trading 36.3% below its 52-week high, also faced pressure from the release of new Anthropic AI models and geopolitical tensions after a US Apache helicopter went down near Oman.
Five9 Insider Tiffany Meriweather Sold Nearly 30,000 Shares for $628,000
Five9 Chief Administrative and Legal Officer Tiffany Meriweather sold 29,817 shares for a total transaction value of approximately $628,000 at an average price around $21.05 per share on May 13 and May 14, 2026. The sale represented 9.58% of Meriweather's direct Five9 holdings, reducing her direct ownership from 311,115 to 281,298 shares. This was Meriweather's largest single direct sale to date, surpassing the previous high of 7,861 shares sold in September 2025 and accounting for most of the net shares sold since December 2025. The transaction occurred as Five9 shares rebounded from a 52-week low of $13.29 in April, though the stock had declined 22.40% over the prior year. Five9 reported first-quarter revenue of $305.3 million, up 9% year over year, and net income of $18.4 million, a sharp improvement from $0.6 million a year earlier.