Roth Capital Markets analyst Richard Baldry is reiterating his “Purchase” ranking and $40.00 value goal on Five9 (Five9 Inventory Quote, Chart, Information, Analysts, Financials NASDAQ:FIVN) regardless of slowing income progress, arguing report bookings and AI momentum place the corporate for improved sentiment in 2026.
In a Feb. 19 notice, Baldry stated Five9’s fourth-quarter outcomes had been largely according to expectations, although progress decelerated additional. This autumn/25 income of $300.3-million matched his $299.6-million estimate and grew 7.8% year-over-year, down from 8.2% in Q3 and nicely beneath the prior six-quarter vary of 12.4% to 16.6%.
First-quarter steerage of $296.5-million to $302.5-million implies 6% to eight% year-over-year progress, elevating the chance of additional near-term deceleration. Baldry trimmed his 2026 income forecast to $1,261.0-million from $1,277.0-million, aligning with the higher finish of firm steerage.
Nevertheless, he pointed to report bookings and power in AI-related enterprise income, which grew 50% year-over-year, with bookings up greater than 100%.
“File bookings and strengths throughout its AI-related metrics provide a path to improved sentiment in 2026,” Baldry stated, including that with a brand new CEO taking on, steerage “ought to be aiming conservative to supply upside beginning his tenure.”
On profitability, professional forma EPS of $0.80 met his estimate, whereas Adjusted EBITDA of $77.3-million exceeded his $72.8-million forecast.
For 2026, administration guided to professional forma EPS of $3.15 to $3.21.
Baldry trimmed his 2026 EPS estimate modestly to $3.21 from $3.24.He forecasts Five9 will generate $302.7-million in Adjusted EBITDA on income of $1,261.0-million in fiscal 2026.
Baldry famous that Five9’s shares have fallen roughly 92% from their peak, leaving the inventory buying and selling at roughly 1.1x run-rate income, greater than 50% beneath his peer group common of two.4x.
“With steerage calling for information for each revenues and AEBITDA in 2026 … we consider Five9’s strengthening AI applied sciences, main SaaS franchise and over $1B income scale are stable foundations to assist its re-acceleration effort,” he stated.
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