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On May 11, 2026, First Wilshire Securities Management disclosed a significant purchase of Gibraltar Industries (ROCK +2.97%) shares, with an estimated trade value of $17.93 million based on quarterly average pricing.

What happenedAccording to a recent SEC filing dated May 11, 2026, First Wilshire Securities Management increased its holding in Gibraltar Industries by 370,985 shares during the first quarter. The estimated value of this trade is $17.93 million based on the average closing price for the quarter. The quarter-end value of the position rose by $13.56 million, a figure that includes both the share addition and any stock price changes during the period.

What else to knowThe fund added to its Gibraltar Industries stake, which now accounts for 4.49% of reported 13F AUM post-trade..Top five holdings after the filing:NYSE: SGOV: $67.05 million (15.1% of AUM)NASDAQ:LBTYA: $28.31 million (6.4% of AUM)NYSE: ECVT: $28.25 million (6.4% of AUM)NYSE: SD: $22.96 million (5.2% of AUM)NYSE: TPH: $20.86 million (4.7% of AUM)As of May 11, 2026, Gibraltar Industries shares were priced at $39.24, down 37% over the past year and trailing the S&P 500 by 64 percentage points over the same period..Company OverviewMetricValueRevenue (TTM)$1.1 billionNet Income (TTM)$97.6 millionMarket Capitalization$1.16 billionPrice (as of market close May 11, 2026)$39.24Company SnapshotGibraltar Industries manufactures and distributes building products for the renewable energy, residential, agtech, and infrastructure markets, including solar racking systems, mail and package solutions, greenhouse structures, and bridge protection systems.The company operates a multi-segment business model focused on designing, engineering, manufacturing, and installing products that address energy, construction, and agricultural needs across North America and Asia.It serves solar developers, commercial and institutional growers, home improvement retailers, wholesalers, distributors, and contractors as primary customers.Gibraltar Industries is a diversified manufacturer and distributor of building products with a strategic focus on renewable energy, residential construction, agtech, and infrastructure solutions. The company leverages its engineering and manufacturing capabilities to deliver integrated solutions for complex customer needs in both established and emerging markets.

What this transaction means for investorsGibraltar’s stock has been crushed over the past year as investors mulled a few key concerns, including slowing residential demand, integration risks tied to the OmniMax acquisition, and margin pressure from rising commodity costs. But this move signals that First Wilshire appears to believe the selloff has gone too far relative to the company’s longer-term earnings potential.

Looking at fundamentals, Gibraltar’s first-quarter sales jumped 45% to $356.3 million, largely driven by OmniMax and other acquisitions. The company also raised its synergy target from the OmniMax integration to $26 million, with $16 million expected to contribute to 2026 adjusted EBITDA. Management said more than 500 integration milestones have already been completed in the first 90 days.

The weak spot remains profitability. Adjusted EPS fell 50% to $0.45 as aluminum inflation, acquisition costs, and softer residential demand weighed on margins. Still, Gibraltar reaffirmed full-year guidance calling for up to $326 million in adjusted EBITDA and as much as $4.05 in adjusted EPS. Whether the firm can meet or hopefully surpass those expectations will likely be the biggest catalyst going forward.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends iShares Trust - iShares 0-3 Month Treasury Bond ETF. The Motley Fool has a disclosure policy.

Bragar Eagel & Squire, P.C. Litigation Partner Brandon Walker Encourages Investors Who Suffered Losses In Black Rock (BRCB) To Contact Him Directly To Discuss Their Options

If you purchased or acquired stock in Black Rock and would like to discuss your legal rights, call Bragar Eagel & Squire partner Brandon Walker or Melissa Fortunato directly at (212) 355-4648.

Click here to participate in the action.

NEW YORK, May 21, 2026 (GLOBE NEWSWIRE) --

What’s Happening:

Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Black Rock Coffee Bar, Inc. (“Black Rock” or the “Company”) (NASDAQ:BRCB) on behalf of Black Rock stockholders. Our investigation concerns whether Black Rock has violated the federal securities laws and/or engaged in other unlawful business practices.
Investigation Details:

On or around September 12, 2025, Black Rock conducted its initial public offering ("IPO"), selling 14.71 million shares priced at $20.00 per share. Then, on May 12, 2026, Black Rock issued a press release announcing its financial results for the first quarter of 2026. Among other items, Black Rock reported GAAP earnings per share of $0.02, missing consensus estimates by $0.01, and revenue of $55.5 million, missing consensus estimates by $1.14 million.
On this news, Black Rock's stock price fell $3.32 per share, or 30.26%, to close at $7.65 per share on May 13, 2026.
Next Steps:

If you purchased or otherwise acquired Black Rock shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at [email protected], by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, South Carolina, and California. The firm represents individual and institutional investors in securities, derivative, and commercial litigation as well as individuals in consumer protection and data privacy litigation. The firm has a nationwide practice and routinely handles cases in both federal and state courts. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.

Follow us for updates on LinkedIn and Facebook, and keep up with other news by following Brandon Walker, Esq. on LinkedIn.

Contact Information:

Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
[email protected]
www.bespc.com

BUFFALO, N.Y.--(BUSINESS WIRE)---- $ROCK #ROCK--Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and provider of products and services for the residential, agtech and infrastructure markets, today announced that Chairman and Chief Executive Officer Bill Bosway and Chief Financial Officer Joe Lovechio are scheduled to meet with investors at the Wells Fargo 16th Industrials & Materials Conference on Wednesday, June 10th. About Gibraltar Gibraltar is a leading manufacturer and provider of pro.

Exceeded estimates for revenue and non-GAAP operating income
Landed the two largest deals in company's history, including first $1 million-plus ARR deal

SAN MATEO, Calif., May 05, 2026 (GLOBE NEWSWIRE) -- Freshworks Inc. (Nasdaq: FRSH), the leading provider of uncomplicated software that delivers exceptional employee and customer experiences, today announced financial results for its first quarter ended March 31, 2026.

"Freshworks began Q1 with strong momentum, building on our 2025 successes and achieving our sixth straight quarter of exceeding expectations," stated Dennis Woodside, CEO & President of Freshworks. "High demand for our Employee Experience (EX) platform is fueling market traction, characterized by accelerating EX ARR, growing AI Copilot revenue, and strong net dollar retention. We are strategically investing in the EX opportunity as our approach continues to resonate with our customers. Freshworks is focused on delivering long-term value to shareholders and customers through sustainable growth and increased profitability."

First Quarter 2026 Financial Summary Results

Revenue: Total revenue was $228.6 million, representing growth of 16% compared to total revenue of $196.3 million in the first quarter of 2025, and 14% adjusting for constant currency. GAAP (Loss) from Operations: GAAP (loss) from operations was $(8.1) million, representing an operating margin of (3.5)%, compared to $(10.4) million in the first quarter of 2025, representing an operating margin of (5.3)%. Non-GAAP Income from Operations: Non-GAAP income from operations was $41.0 million, representing a non-GAAP operating margin of 17.9%, compared to $46.4 million in the first quarter of 2025, representing a non-GAAP operating margin of 23.6%. GAAP Net (Loss) Per Share: GAAP diluted net (loss) per share was $(0.02) based on 283.3 million weighted-average shares outstanding, compared to $0.00 based on 301.3 million weighted-average shares outstanding in the first quarter of 2025. Non-GAAP Net Income Per Share: Non-GAAP diluted net income per share was $0.11 based on 284.3 million weighted-average shares outstanding, compared to $0.18 based on 306.0 million weighted-average shares outstanding in the first quarter of 2025. Net Cash Provided by Operating Activities: Net cash provided by operating activities was $62.4 million, representing an operating cash flow margin of 27.3%, compared to $58.0 million in the first quarter of 2025, representing an operating cash flow margin of 29.5%. Adjusted Free Cash Flow: Adjusted free cash flow was $55.8 million, representing an adjusted free cash flow margin of 24.4%, compared to $55.4 million in the first quarter of 2025, representing an adjusted free cash flow margin of 28.2%. Cash, Cash Equivalents, Restricted Cash and Marketable Securities: Cash, cash equivalents, restricted cash and marketable securities were $780.4 million as of March 31, 2026. All financial numbers for 2026 include the results of our FireHydrant business. A description of non-GAAP financial measures is contained in the section titled “Explanation of Non-GAAP Financial Measures” below and a reconciliation of GAAP to non-GAAP financial measures is detailed in the tables below.

First Quarter Operating Metrics and Recent Business Highlights

Number of customers contributing more than $100,000 in ARR was 1,646, an increase of 29% year-over-year and 26% adjusting for constant currency.Number of customers contributing more than $50,000 in ARR was 3,938, an increase of 22% year-over-year and 20% adjusting for constant currency.Number of customers contributing more than $5,000 in ARR was 25,088, an increase of 8% year-over-year and 7% adjusting for constant currency.Net dollar retention rate was 106%, compared to 108% in the fourth quarter of 2025 and 105% in the first quarter of 2025. Adjusted for constant currency, net dollar retention rate was 105%, compared to 104% in the fourth quarter of 2025 and 105% in the first quarter of 2025.Welcomed and onboarded many new customers to the Freshworks community including Eagle Materials, Everbridge, G4S, Outreach, and University of Connecticut.Landed the two largest deals in Freshworks' history, including the first $1 million-plus ARR deal.Integrated Device42’s infrastructure discovery and mapping capabilities natively into Freshservice, giving teams a single AI-powered platform to manage assets, services, and operations.Unified our global sales organization and appointed Ian Tickle as Chief Revenue Officer.Introduced a new leader with Kuntal Vahalia joining as Senior Vice President of Global Channels and Alliances. Financial Outlook

We are providing estimates for the second quarter and for the full year 2026. We emphasize that these estimates are subject to various important cautionary factors referenced in the section entitled “Forward-Looking Statements” below.

For the second quarter and full year 2026, we currently expect the following results:

($ in millions, except per share data)Second Quarter 2026Full Year 2026Revenue(1)        $232.0 - $235.0$958.0 - $964.0Year-over-year growth        13% - 15%14% - 15%   Non-GAAP income from operations(1)        $41.0 - $43.0$207.0 - $215.0   Non-GAAP net income per share(2)        $0.13
$0.61 - $0.63    (1) Revenue and non-GAAP income from operations are based on exchange rates as of May 1, 2026 for currencies other than USD.
(2) Non-GAAP net income per share was estimated assuming 280 million and 281 million weighted-average shares outstanding for the second quarter and full year 2026, respectively.

These statements are forward-looking and actual results may differ materially. Refer to the “Forward-Looking Statements” safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

We have not reconciled our second quarter and full year 2026 estimates for non-GAAP financial measures, including our estimated non-GAAP income from operations and non-GAAP net income per share, disclosed above, and our estimated non-GAAP tax rate, disclosed below, to GAAP due to the uncertainty and potential variability of expenses that may be incurred in the future. Accordingly, a reconciliation is not available without unreasonable effort and we are unable to address the probable significance of the unavailable information. We have provided a reconciliation of other GAAP to non-GAAP financial measures in the financial statement tables for our first quarter 2026 and 2025 non-GAAP results included in this press release.

Webcast and Conference Call Information

We will host a conference call for investors on May 5, 2026 at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to discuss the Company’s financial results and business highlights. Investors are invited to listen to a live audio webcast of the conference call by visiting the investor relations website at ir.freshworks.com. A replay of the audio webcast will be available shortly after the call on the Freshworks Investor Relations website and will be available for twelve months thereafter.

Explanation of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain non-GAAP financial measures, including revenue adjusted for constant currency, non-GAAP gross profit, non-GAAP gross margin, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income per share, non-GAAP net income, adjusted free cash flow, and adjusted free cash flow margin. This press release and the accompanying tables also contain certain other metrics, including annual recurring revenue, net dollar retention rates, revenue growth rates, and related presentation thereof adjusted for constant currency.

We adjust revenue and related growth rates for constant currency to provide a framework for assessing business performance excluding the effect of foreign currency rate fluctuations. To present this information, current period results for currencies other than USD are converted into USD at the average exchange rates in effect during the comparison period (for Q1 2025, the average exchange rates in effect for our major currencies were 1 EUR to 1.05 USD and 1 GBP to 1.26 USD), rather than the actual average exchange rates in effect during the current period (for Q1 2026, the average exchange rates in effect for our major currencies were 1 EUR to 1.17 USD and 1 GBP to 1.35 USD).

We use these non-GAAP measures in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies and to communicate with our board of directors concerning our financial performance. We believe these non-GAAP measures provide investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of our operating results. We believe these non-GAAP measures are useful in evaluating our operating performance compared to that of other companies in our industry, as they generally eliminate the effects of certain items that may vary for different companies for reasons unrelated to overall operating performance.

Investors, however, are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. The non-GAAP measures we use may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP items excluded from these non-GAAP financial measures.

We exclude the following items from one or more of our non-GAAP financial measures:

Stock-based compensation expense. We exclude stock-based compensation, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this expense provides meaningful supplemental information regarding operational performance. In particular, stock-based compensation expense is not comparable across companies given the variety of valuation methodologies and assumptions. Employer payroll taxes on employee stock transactions. We exclude the amount of employer payroll taxes on equity awards from certain of our non-GAAP financial measures because they are dependent on our stock price at the time of vesting or exercise and other factors that are beyond our control and do not believe these expenses have a direct correlation to the operation of our business. Amortization of acquired intangibles. We exclude amortization of acquired intangibles, which is a non-cash expense, from certain of our non-GAAP financial measures. Our expenses for amortization of acquired intangibles are inconsistent in amount and frequency because they are significantly affected by the timing, size of acquisitions, and the allocation of purchase price. We exclude these amortization expenses because we do not believe these expenses have a direct correlation to the operation of our business. Restructuring charges. We exclude restructuring charges, which primarily consists of employee severance and other employee termination benefits associated with the restructuring plan initiated in November 2024, from our non-GAAP financial measures, because we do not believe these expenses have a direct correlation to the operating performance of our business. Acquisition expenses. We exclude acquisition expenses, which primarily consist of legal fees and due diligence costs, from our non-GAAP financial measures because we do not believe these expenses have a direct correlation to the operating performance of our business. Income tax effect and adjustments. Starting 2026, we utilize a long-term projected non-GAAP tax rate to compute our non-GAAP income tax provision in order to provide better consistency across interim reporting periods. Our non-GAAP tax rate reflects our estimated long-term effective tax rate based on our anticipated geographic earnings mix and statutory tax regimes. For fiscal year 2026, we determined the projected non-GAAP tax rate to be 24%. The difference between our GAAP income tax provision and our non-GAAP income tax provision is presented as non-GAAP income tax reconciling adjustments. Prior to 2026, we excluded the income tax effect of the above adjustments, income tax effect associated with acquisitions and tax charges or benefits that are a result of a change in valuation allowance on deferred tax assets and its related impacts, from our non-GAAP financial measures. We excluded these costs because we do not believe these expenses have a direct correlation to the operating performance of our business. We define adjusted free cash flow as net cash provided by operating activities, less purchases of property and equipment, capitalized internal-use software, plus acquisition costs and restructuring charges. We believe that adjusted free cash flow is a useful indicator of liquidity as it measures our ability to generate cash from our core operations after purchases of property and equipment. Adjusted free cash flow is a measure to determine, among other things, cash available for strategic initiatives, including further investments in our business and potential acquisitions of businesses. We define adjusted free cash flow margin as adjusted free cash flow as a percentage of revenue. We believe that adjusted free cash flow margin is a useful indicator of how efficiently we convert revenue into adjusted free cash flow.

Operating Metrics

Number of Customers Contributing More Than $5,000, $50,000 and $100,000 in ARR. We define ARR as the sum total of subscription, software license, and maintenance revenue we would contractually expect to recognize over the next 12 months from all customers at a point in time, assuming no increases, reductions or cancellations in their subscriptions, and assuming that revenues are recognized ratably over the term of subscription and maintenance contracts and upon delivery for software licenses. We define our total customers contributing more than $5,000, $50,000 and $100,000 in ARR as of a particular date as the number of business entities or individuals, represented by a unique domain or a unique email address, with one or more paid subscriptions to one or more of our products that contributed ARR above the applicable threshold.

Net Dollar Retention Rate. To calculate net dollar retention rate as of a given date, we first determine Entering ARR, which is ARR from the population of our customers as of 12 months prior to the end of the reporting period. We then calculate the Ending ARR from the same set of customers as of the end of the reporting period. We then divide the Ending ARR by the Entering ARR to arrive at our net dollar retention rate. Ending ARR includes upsells, cross-sells, renewals and expansion as a result of acquisitions during the measurement period and is net of any contraction or attrition over this period.

We also adjust the above operating metrics, growth rates of customers contributing more than $5,000, $50,000 and $100,000 in ARR and related presentation thereof for constant currency to provide a framework for assessing our business performance excluding the effects of foreign currency rates fluctuations. To present this information, the Ending ARR of the current period in currencies other than USD is converted into USD at the exchange rates in effect at the end of the comparison period (for Q1 2025, the period end exchange rates in effect for our major currencies were 1 EUR to 1.08 USD and 1 GBP to 1.29 USD), rather than the actual exchange rates in effect at the end of the current period (for Q1 2026, the period end exchange rates in effect for our major currencies were 1 EUR to 1.15 USD and 1 GBP to 1.32 USD).

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, our GAAP and non-GAAP estimates for the second quarter and full year 2026, our financial outlook, the value of our products to customers, our expectations regarding demand for and our strategy related to our EX platform, and our overall growth prospects. These forward-looking statements are based on our current expectations, estimates and projections about our business and industry, including our financial outlook and macroeconomic uncertainties, management’s beliefs and certain assumptions made by the company, all of which are subject to change. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, “future,” “believe,” “expect,” “may,” “will,” “intend,” “outlook,” “estimate,” “continue,” “anticipate,” “could,” “would,” “projects,” “plans,” “targets” or similar expressions or the negative of those terms or expressions. Such statements involve risks and uncertainties, many of which involve factors or circumstances that are beyond our control, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. Factors that may cause actual results to differ materially include our ability to achieve our long-term plans and key initiatives; our ability to sustain or manage any future growth effectively; our ability to attract and retain customers or expand sales to existing customers; delays in product development or deployments or the success of such products; the failure to deliver competitive service offerings and lack of market acceptance of any offerings delivered; the impact to the economy, our customers and our business due to uncertain global economic conditions, including market volatility, foreign exchange rates, and impact of inflation; the timeframes for and severity of the impact of any weakened global economic conditions on our customers’ purchasing and renewal decisions, which may extend the length of our sales cycles or adversely affect our industry; our history of net losses and ability to achieve or sustain profitability, as well as the other potential factors described under “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2025 as such factors may be updated from time to time in our periodic and other documents of Freshworks Inc. filed with the Securities and Exchange Commission from time to time (available at www.sec.gov).

We caution you not to place undue reliance on forward-looking statements, which speak only as of the date hereof and are based on information available to us at the time the statements are made and/or management’s good faith belief as of that time with respect to future events. We assume no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release, except as required by law.

About Freshworks Inc.

Freshworks Inc. provides service software that delivers exceptional employee and customer experiences. Its enterprise-grade solutions are powerful yet intuitive, and quick to deliver value. With a people-first approach to AI, Freshworks helps teams be more effective and organizations more productive. Companies including Bridgestone, New Balance, S&P Global, and Sony Music trust Freshworks to improve service efficiency and fuel long-term loyalty. For the latest updates, visit freshworks.com and follow Freshworks on LinkedIn, X, and Facebook.

© 2026 Freshworks Inc. All rights reserved. Freshworks and its associated logos are trademarks of Freshworks Inc. All other trademarks are property of their respective owners. Nothing in this press release should be construed to the contrary, or as an approval, endorsement or sponsorship by any third party of Freshworks Inc. or any aspect of this press release.

Investor Relations Contact:
[email protected] 

Media Relations Contact:
[email protected] 

FRESHWORKS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)   Three Months Ended
March 31,  2026   2025 Revenue        $228,633  $196,273 Cost of revenue(1)         34,688   29,878 Gross profit         193,945   166,395 Operating expense:   Research and development(1)         49,261   40,001 Sales and marketing(1)         112,317   89,158 General and administrative(1)         40,427   47,247 Restructuring charges         —   405 Total operating expenses         202,005   176,811 Loss from operations         (8,060)  (10,416)Interest and other income, net         1,426   12,969 Income (loss) before income taxes         (6,634)  2,553 Provision for (benefit from) income taxes         (1,824)  3,857 Net loss         (4,810)  (1,304)Net loss per share - basic and diluted        $(0.02) $— Weighted-average shares used in computing net loss per share - basic and diluted         283,336   301,280  ______________________
(1) Includes stock-based compensation expense as follows (in thousands):

 Three Months Ended
March 31,  2026  2025Cost of revenue        $1,618 $1,518Research and development         12,301  9,213Sales and marketing         13,000  13,409General and administrative         17,002  27,524Total stock-based compensation expense, net of amounts capitalized        $43,921 $51,664       FRESHWORKS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)     March 31, 2026 December 31, 2025 (unaudited)  Assets   Current assets:   Cash and cash equivalents        $548,168  $569,774 Restricted cash         1,160   62,374 Marketable securities         231,069   211,597 Accounts receivable, net         127,338   150,817 Deferred contract acquisition costs         30,927   29,830 Prepaid expenses and other current assets         68,148   72,774 Total current assets         1,006,810   1,097,166 Property and equipment, net         44,222   38,843 Operating lease right-of-use assets         36,968   39,893 Deferred contract acquisition costs, noncurrent         27,712   27,179 Goodwill         199,324   146,676 Intangible assets, net         96,703   76,986 Deferred tax assets, net         176,017   157,466 Other assets         17,626   18,503 Total assets        $1,605,382  $1,602,712 Liabilities and Stockholders' Equity   Current liabilities:   Accounts payable        $18,578  $11,507 Accrued liabilities         109,405   101,202 Deferred revenue         392,070   385,320 Total current liabilities         520,053   498,029 Operating lease liabilities, non-current         29,402   33,282 Other liabilities         36,726   38,751 Total liabilities         586,181   570,062 Stockholders' equity:   Common stock         3   3 Additional paid-in capital         4,579,812   4,586,392 Accumulated other comprehensive loss         (3,650)  (1,591)Accumulated deficit         (3,556,964)  (3,552,154)Total stockholders' equity         1,019,201   1,032,650 Total liabilities and stockholders' equity        $1,605,382  $1,602,712          FRESHWORKS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

   Three Months Ended
March 31,  2026   2025 Cash Flows from Operating Activities:   Net income (loss)        $(4,810) $(1,304)Adjustments to reconcile net income (loss) to net cash provided by operating activities:   Depreciation and amortization         7,863   6,360 Amortization of deferred contract acquisition costs         8,567   7,583 Non-cash lease expense         2,925   2,303 Stock-based compensation         43,921   51,664 Discount amortization on marketable securities         (947)  (1,901)Deferred income taxes         (5,865)  (459)Other         7,808   (17)Changes in operating assets and liabilities:   Accounts receivable         24,917   10,594 Deferred contract acquisition costs         (10,197)  (8,704)Prepaid expenses and other assets         (12,564)  (15,317)Accounts payable         6,894   526 Accrued and other liabilities         (3,442)  (496)Deferred revenue         1,027   7,049 Operating lease liabilities         (3,708)  92 Net cash provided by operating activities         62,389   57,973 Cash Flows from Investing Activities:   Purchases of property and equipment         (3,901)  (1,296)Proceeds from sale of property and equipment         5   38 Capitalized internal-use software         (3,379)  (2,772)Purchases of marketable securities         (147,421)  (121,933)Maturities and redemptions of marketable securities         129,351   172,194 Business combination, net of cash acquired         (56,913)  — Net cash provided by (used in) investing activities         (82,258)  46,231 Cash Flows from Financing Activities:   Proceeds from exercise of stock options         —   48 Payment of withholding taxes on net share settlement of equity awards         (7,160)  (16,711)Repurchase of common stock         (48,369)  (113,610)Net cash used in financing activities         (55,529)  (130,273)    Effect of exchange rate changes on cash, cash equivalents and restricted cash         (7,521)  —     Net decrease in cash, cash equivalents and restricted cash         (82,919)  (26,069)Cash, cash equivalents and restricted cash, beginning of period         632,250   620,405 Cash, cash equivalents and restricted cash, end of period        $549,331  $594,336          FRESHWORKS INC.
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(in thousands, except percentages and per share data)
(unaudited)       Three Months Ended
March 31,     2026   2025 Growth RatesRevenue      GAAP revenue         $228,633  $196,273 16%Effects of foreign currency rate fluctuations          (5,392)    Revenue adjusted for constant currency         $223,241  $196,273 14%            FRESHWORKS INC.
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(in thousands, except percentages and per share data)
(unaudited)   Three Months Ended
March 31,  2026   2025 Reconciliation of gross profit and gross margin:   GAAP gross profit        $193,945  $166,395 Non-GAAP adjustments:           Stock-based compensation expense         1,618   1,518 Employer payroll taxes on employee stock transactions         29   27 Amortization of acquired intangibles         1,637   1,260 Non-GAAP gross profit        $197,229  $169,200 GAAP gross margin         84.8%  84.8%Non-GAAP gross margin         86.3%  86.2%    Reconciliation of operating expenses:   GAAP research and development        $49,261  $40,001 Non-GAAP adjustments:           Stock-based compensation expense         (12,301)  (9,213)Employer payroll taxes on employee stock transactions         (113)  (152)Non-GAAP research and development        $36,847  $30,636 GAAP research and development as percentage of revenue         21.5%  20.4%Non-GAAP research and development as percentage of revenue         16.1%  15.6%    GAAP sales and marketing        $112,317  $89,158 Non-GAAP adjustments:           Stock-based compensation expense         (13,000)  (13,409)Employer payroll taxes on employee stock transactions         (390)  (562)Amortization of acquired intangibles         (2,546)  (2,254)Non-GAAP sales and marketing        $96,381  $72,933 GAAP sales and marketing as percentage of revenue         49.1%  45.4%Non-GAAP sales and marketing as percentage of revenue         42.2%  37.2%    GAAP general and administrative        $40,427  $47,247 Non-GAAP adjustments:   Stock-based compensation expense          (17,002)  (27,524)Employer payroll taxes on employee stock transactions         (225)  (458)Acquisition expense         (155)  — Non-GAAP general and administrative        $23,045  $19,265     GAAP general and administrative as percentage of revenue         17.7%  24.1%Non-GAAP general and administrative as percentage of revenue         10.1%  9.8%Reconciliation of operating loss and operating margin:   GAAP income (loss) from operations        $(8,060) $(10,416)Non-GAAP adjustments:   Stock-based compensation expense         43,921   51,664 Employer payroll taxes on employee stock transactions         757   1,199 Amortization of acquired intangibles         4,183   3,514 Restructuring charges         —   405 Acquisition expense         155   — Non-GAAP income from operations         40,956   46,366 GAAP operating margin        (3.5)        % (5.3)        %Non-GAAP operating margin         17.9%  23.6%    Reconciliation of net loss:   GAAP net (loss)        $(4,810) $(1,304)Non-GAAP adjustments:   Stock-based compensation expense         43,921   51,664 Employer payroll taxes on employee stock transactions         757   1,199 Amortization of acquired intangibles         4,183   3,514 Restructuring charges         —   405 Acquisition expense         155   — Income tax adjustments         (11,996)  410 Non-GAAP net income        $32,210  $55,888     Reconciliation of net loss per share - diluted:   GAAP net loss per share - diluted        $(0.02) $— Non-GAAP adjustments:   Stock-based compensation expense         0.16   0.17 Amortization of acquired intangibles         0.01   0.01 Income tax adjustments         (0.04)  — Non-GAAP net income per share - diluted        $0.11  $0.18 Weighted-average shares used in computing GAAP net (loss) per share - diluted         283,336   301,280 Weighted-average shares used in computing non-GAAP net income per share - diluted (1)         284,337   305,963 Computation of adjusted free cash flow:   Net cash provided by operating activities        $62,389  $57,973 Less:   Purchases of property and equipment          (3,901)  (1,296)Capitalized internal-use software         (3,379)  (2,772)Add:           Acquisition costs paid         719   — Restructuring costs paid         —   1,493 Adjusted free cash flow        $55,828  $55,398 Operating cash flow margin         27.3%  29.5%Adjusted free cash flow margin         24.4%  28.2%Net cash provided by (used in) investing activities        $(82,258) $46,231 Net cash used in financing activities        $(55,529) $(130,273) (1) Diluted net income (loss) per share attributable to common stockholders is determined by giving effect to all potential common equivalents during the reporting period, unless including them yields an antidilutive result. The company considers its stock options and RSUs as potential common stock equivalents but excluded them from the computation of GAAP diluted net loss per share attributable to common stockholders, as their effect was antidilutive. For the three months ended March 31, 2026 and 2025, potentially dilutive shares of 1.0 million and 4.7 million shares, respectively, were included in the weighted average shares used in computing non-GAAP diluted net income per share.

Freshworks Inc. (FRSH - Free Report) came out with quarterly earnings of $0.11 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items.

A quarter ago, it was expected that this company would post earnings of $0.11 per share when it actually produced earnings of $0.14, delivering a surprise of +27.27%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Freshworks, which belongs to the Zacks Internet - Software industry, posted revenues of $228.63 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.28%. This compares to year-ago revenues of $196.27 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Freshworks shares have lost about 26.7% since the beginning of the year versus the S&P 500's gain of 5.2%.

What's Next for Freshworks?While Freshworks has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Freshworks was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.12 on $232.92 million in revenues for the coming quarter and $0.57 on $956.25 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, DocuSign (DOCU - Free Report) , is yet to report results for the quarter ended April 2026.

This provider of electronic signature technology is expected to post quarterly earnings of $1.00 per share in its upcoming report, which represents a year-over-year change of +11.1%. The consensus EPS estimate for the quarter has been revised 1.5% higher over the last 30 days to the current level.

DocuSign's revenues are expected to be $824.75 million, up 8% from the year-ago quarter.

May 06, 2026 08:00 ET  | Source: Freshworks Inc

SAN MATEO, Calif., May 06, 2026 (GLOBE NEWSWIRE) -- Freshworks Inc. (NASDAQ: FRSH) will host a Financial Analyst Session at Refresh 2026 on Thursday, May 14 at 4:30 p.m. Eastern Time in New York City. Dennis Woodside, Chief Executive Officer and President, and Tyler Sloat, Chief Operating Officer and Chief Financial Officer, will speak about Freshworks’ vision, product innovation, and financial outlook.

A livestream will be accessible the day of the event at https://ir.freshworks.com  

About Freshworks Inc.
Freshworks Inc. provides service software that delivers exceptional employee and customer experiences. Its enterprise-grade solutions are powerful yet intuitive, and quick to deliver value. With a people-first approach to AI, Freshworks helps teams be more effective and organizations more productive. Companies including Bridgestone, New Balance, S&P Global, and Sony Music trust Freshworks to improve service efficiency and fuel long-term loyalty. For the latest updates, visit freshworks.com and follow Freshworks on LinkedIn, X, and Facebook.

© 2026 Freshworks Inc. All Rights Reserved. Freshworks, Freshservice and any associated logo are trademarks of Freshworks Inc. All other company, brand and product names may be trademarks or registered trademarks of their respective companies. Nothing in this press release should be construed to the contrary, or as an approval, endorsement or sponsorship by any third parties of Freshworks Inc. or any aspect of this press release.

Investor Relations Contact:
[email protected]

Media Relations Contact:
[email protected]

Freshworks Inc. (FRSH - Free Report) closed the last trading session at $9.03, gaining 13.7% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $12.5 indicates a 38.4% upside potential.

The average comprises 12 short-term price targets ranging from a low of $8.00 to a high of $18.00, with a standard deviation of $3.03. While the lowest estimate indicates a decline of 11.4% from the current price level, the most optimistic estimate points to a 99.3% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.

However, an impressive consensus price target is not the only factor that indicates a potential upside in FRSH. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Here's Why There Could be Plenty of Upside Left in FRSHThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The Zacks Consensus Estimate for the current year has increased 13.5% over the past month, as one estimate has gone higher compared to no negative revision.

Moreover, FRSH currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much FRSH could gain, the direction of price movement it implies does appear to be a good guide.

Freshworks Inc. (FRSH - Free Report) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.

The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Freshworks Inc., there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate RevisionsThe earnings estimate of $0.13 per share for the current quarter represents a change of -27.8% from the number reported a year ago.

Over the last 30 days, two estimates have moved higher for Freshworks compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 22.22%.

Current-Year Estimate RevisionsFor the full year, the company is expected to earn $0.61 per share, representing a year-over-year change of -7.6%.

The revisions trend for the current year also appears quite promising for Freshworks, with four estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 73.08%.

Favorable Zacks RankOur research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom LineInvestors have been betting on Freshworks because of its solid estimate revisions, as evident from the stock's 8.7% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.

CRM Stocks Are Hot in 2024 — Should You Hold for 2025 Gains?Freshworks NASDAQ: FRSH told investors at its Refresh event that it is repositioning the company around its employee experience, or EX, business, with executives saying the company’s growth story is increasingly tied to Freshservice rather than its legacy customer experience products.

CEO and President Dennis Woodside said Freshworks is now an “EX-first company,” adding that some investors and analysts still view the company as centered on customer experience and small businesses. “That’s just not accurate anymore,” Woodside said.

Get Freshworks alerts:

Freshworks Stock Soars 50% – Is This the Perfect Entry Point?Woodside said EX represented 37% of Freshworks’ business when the company went public, but is expected to be 60% of annual recurring revenue by the end of this year and 70% by the end of 2028. He said Freshservice is on a path to $1 billion in ARR in about two and a half years, with the company expecting to end 2026 at $600 million in ARR for the product.

Freshworks Highlights Enterprise and Mid-Market Momentum Woodside said Freshworks is seeing traction with larger customers, particularly in what the company calls “agile enterprises,” which it defines as organizations with up to 20,000 employees. He said 80% of EX ARR comes from mid-market and enterprise customers, with mid-market defined as companies with 251 or more employees and enterprise defined as 5,000 or more employees.

Top 2 CRM Stocks Positioned to Surge Higher With AI in 2025The company said its EX business has grown fivefold over the past five years and now serves 20,000 customers globally. Woodside cited customers including Seagate, New Balance, Databricks, Smartsheet, RingCentral, Nucor Steel, Steel Dynamics and Vermeer, and said Freshservice is used by one-third of Major League Baseball teams and one-third of Formula One teams.

Freshworks said customers spending more than $100,000 annually account for more than 40% of the Freshservice business, and that this customer group grew 40% year over year in the first quarter. The company also said average revenue per account for EX grew 18% year over year.

AI Positioned as Growth Driver Woodside said artificial intelligence is acting as both a direct and indirect tailwind for the business. Freshworks announced several AI-related updates at the event, including AI Agent Studio for EX, an MCP gateway, cloud-native IT asset management, IT operations management integration following the FireHydrant acquisition, and new experience-level agreement and executive overview capabilities.

The company said Freddy Copilot is priced as a $29-per-month add-on to Pro and Enterprise plans. Freshworks also said AI Agent Studio and the MCP gateway will be available to customers at no charge for a promotional period, with monetization expected to begin in October. Woodside said AI Agent sessions are expected to be priced at $0.49 per session beginning in October, while MCP gateway pricing will be determined after the company observes customer usage.

Woodside said agents using Freddy Copilot can address 50% more tickets than those who do not. He also said Freshworks saw an average 50% deflection rate with Freddy AI Agent in the first quarter, with some customers reaching as high as 80%. Freshworks said EX customers using AI had net dollar retention of 118% last quarter.

Updated 2028 Targets CFO Tyler Sloat said Freshworks is raising its 2028 outlook based on stronger confidence in EX growth, a more focused go-to-market strategy and additional opportunities from IT asset management, IT operations management and enterprise service management.

Sloat said Freshworks now expects 2028 revenue of more than $1.3 billion, up from the prior target of more than $1.2 billion. The company also raised its operating margin and free cash flow margin targets by 400 basis points from the targets provided at its September investor day.

Sloat said Freshworks is targeting a “rule of 50” profile by 2028, with roughly 34% free cash flow margins. He also said the company expects adjusted free cash flow per share of $1.35 by 2028 and plans to grow free cash flow per share by 20% annually going forward.

The company reiterated that its guidance for the current year remains unchanged from the update provided the prior week, when it raised revenue guidance by $5 million, operating profit guidance by $26 million and free cash flow guidance by $15 million after the first quarter.

Capital Efficiency and CX Strategy Sloat said Freshworks has reduced fully diluted shares by almost 10% from 2024 to 2026 and currently has $700 million in cash with no debt. He said the company is actively using its second buyback authorization and has been net settling restricted stock units since going public.

Freshworks also lowered its stock-based compensation target, saying it now expects SBC to be 13% to 14% of revenue by 2028, compared with a prior long-term model of 18% to 20%. Sloat said SBC is expected to decline from 30% of revenue in 2024 to an estimated 16% this year.

While Freshworks emphasized EX as its primary growth engine, executives said the company remains committed to its customer experience business. Woodside said many large customers use both CX and EX products, and that shared infrastructure provides leverage across the company. Sloat said CX will be focused on inbound demand and is expected to grow in the low single digits while producing cash.

Analyst Questions Focus on Growth, AI and Market Position During the question-and-answer session, Sloat said the company’s EX growth targets do not assume future acquisitions. He said AI will become a larger factor in why customers choose Freshworks, but the company is focused on overall ARR and margins rather than separately emphasizing AI ARR.

Woodside said Freshworks is not relying on an overall increase in IT spending to support growth. Instead, he said the company is taking share from incumbent providers, particularly among organizations that need enterprise-grade capabilities without what he described as enterprise complexity.

“It’s not that we need overall IT spend to go up,” Woodside said. “We’re taking share from others that are not serving that space well.”

About Freshworks NASDAQ: FRSHFreshworks, Inc is a global provider of cloud-based customer engagement software designed to help businesses streamline customer support, sales, marketing, and IT service operations. The company's integrated suite of solutions enables organizations of all sizes to deliver seamless experiences across multiple channels, including email, chat, phone, and social media. Freshworks' platform is built on modern, user-friendly interfaces and offers native automation, AI-powered insights, and analytics to improve efficiency and customer satisfaction.

The company's flagship product, Freshdesk, serves as a helpdesk solution for customer support teams, while Freshservice addresses IT service management needs.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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SAN MATEO, Calif., May 20, 2026 (GLOBE NEWSWIRE) -- Freshworks (NASDAQ: FRSH) today announced the winners of its inaugural 2026 Global Customer Awards, recognizing customers whose commitment to innovation, transformation, and advocacy is setting a new standard for what service transformation can achieve.

Seven categories across Freshworks’ products recognize customers driving transformation at scale — from global law firms unifying ITSM across 90 countries, to retailers cutting customer resolution times with AI, to security companies building enterprise-wide service ecosystems from a single deployment. Together, these honorees show what’s possible with Freshworks.

“Tech leaders deserve to see real transformation, not just the promise of it on slides,” said Kady Srinivasan, Chief Marketing Officer of Freshworks. “Our 2026 Global Customer Award winners did exactly that. They use Freshworks to deliver real, measurable impact for the people they serve, and we're proud to celebrate what they've built."

Experience Transformation Leader Award for Freshdesk - Panasonic

Michelle Esgar, Director of Marketing and Experience at Panasonic, consolidated North America’s post-purchase customer support onto a single AI-enabled Freshdesk Omnichannel platform — replacing siloed, fragmented structures across markets, languages, and channels. The result: more than 90,000 annual conversations managed through one unified system, with custom bot workflows driving a 70% deflection rate and live chat first response times averaging just 20 seconds.

“Freshdesk supports Panasonic's global transformation goal — reducing customer effort and improving satisfaction in post-purchase support,” said Esgar.

AI Innovation Award for Freshservice - Shopify

Nikki McGrath, Senior Security Engineer of Technology Experience at Shopify, led the implementation of Freshservice across Shopify's global IT function, replacing a fragmented array of tools with a unified, intelligent service delivery platform. Intelligent workflows, self-service capabilities, and integrated asset and incident management now power IT support at scale, delivering a 30–45% reduction in average ticket resolution time and a 40%+ increase in self-service adoption.

“Freshservice streamlined IT service delivery across regions, replacing fragmented tools with a unified, automated service experience. This has significantly reduced response times and improved issue resolution at scale,” said McGrath.

AI Innovation Award for Freshdesk - Cineworld

Rajab Khalid, director of customer experience at Cineworld, led a wholesale customer experience transformation — replacing email threads, spreadsheets, and disconnected local tools with Freshworks' unified platform, AI-driven automation, and real-time analytics. More than 700 lost-item tickets are now resolved automatically every month, first-time response rates have improved by over 100%, and resolution times have dropped to under two hours. Cineworld now has full visibility into customer contact trends for the first time.

“Freshworks enabled real-time communication, automated workflows, and advanced analytics — allowing us to streamline operations and gain actionable insights into customer behavior,” said Khalid.

Customer Advocate of the Year for Freshservice - New Balance

Markus Gaulke, senior ITSM platform manager at New Balance, led the global rollout of Freshservice for more than 10,000 New Balance associates. He architected a unified service catalog from scratch, integrating Device42 for Configuration Management Database (CMDB) and asset management, and establishing change control at scale. Since go-live, New Balance has processed more than 70,000 tickets, doubled logged changes, and increased Customer Satisfaction Score (CSAT) by 25%.

“We were able to deliver a clear and easy way for global associates at New Balance to interact with IT through a service catalog, change control, inventory management, and Device42 CMDB, using all of Freshservice's functionality,” said Gaulke.

Customer Advocate of the Year for Freshdesk - iPostal1

Justin Levitz, head of process technology at iPostal1, used Freshworks to transform the operations of iPostal1, building a deeply customized, AI-enabled platform spanning customer service, IT, HR, legal, and operations when off-the-shelf software couldn't keep pace with the company's compliance requirements and growth. Four AI agents now resolve 56% of all chats — handling more than 85,000 conversations — while chat wait times dropped from 45 minutes to 7 minutes and 125 dashboards provide enterprise-wide transparency. Justin has shaped Freshworks' product roadmap directly through his Customer Advisory Board participation.

“Freshworks is the backbone of how the company runs day to day. It's a fully embedded, AI-enabled operating system that drives efficiency, compliance, and sustainable growth,” said Levitz.

Dream Team Award for Freshdesk and Freshservice - Allied Universal

Under the stewardship of Zwee Nelson, the applications manager at Allied Universal, what began as a single-team Freshservice deployment has grown into a connected, enterprise-wide ecosystem powering 24/7 support across Freshservice and Freshdesk for one of the world's largest security services companies. The most impactful project automated an emergency termination workflow that previously took up to 24 hours, reducing it to under one minute through API, connector, and a SailPoint integration.

For more information on our 2026 winners and the solutions they use, join us at our Refresh Virtual Summit on June 4, 2026. To register visit https://www.freshworks.com/events/refresh-virtual-summit-2026/.

About Freshworks
Freshworks Inc. provides service software that delivers exceptional employee and customer experiences. Its enterprise-grade solutions are powerful yet intuitive, and quick to deliver value. With a people-first approach to AI, Freshworks helps teams be more effective and organizations more productive. Companies including Bridgestone, New Balance, S&P Global, and Sony Music trust Freshworks to improve service efficiency and fuel long-term loyalty. For the latest updates, visit freshworks.com and follow Freshworks on LinkedIn, X, and Facebook.

© 2026 Freshworks Inc. All Rights Reserved. Freshworks, Freshservice, Freddy AI, Device42 and FireHydrant and any associated logo are trademarks of Freshworks Inc. All other company, brand and product names may be trademarks or registered trademarks of their respective companies. Nothing in this press release should be construed to the contrary, or as an approval, endorsement or sponsorship by Freshworks.

Press Contact
[email protected]

Freshworks turned in an impressive Q1 beat-and-raise, boosting its full-year growth expectations by 50bps. FRSH stock remains a deep value play in the software sector, trading at

A global Freshworks research report of over 9,000 IT decision makers finds 86% say AI complexity has increased their team’s workload80% of mid-market IT leaders report AI outputs introduce noise, errors, or rework, a phenomenon the report terms "AI slop"An estimated $16.29 billion in US mid-market AI spend is wasted every year on making AI functional
SAN MATEO, Calif., May 27, 2026 (GLOBE NEWSWIRE) -- Freshworks Inc. (NASDAQ: FRSH) today released The Global Cost of Complexity Report: The Mid-Market AI Complexity Trap, a survey of 12,021 IT professionals, including more than 9,000 in mid-market organizations. The research puts a dollar figure on how complexity is consuming mid-market AI budgets before real business outcomes are delivered, finding an average 25% of mid-market AI spend is lost to complexity overhead, an estimated $16.29 billion annually in the US alone.

With tighter margins than larger enterprises, mid-market companies feel this “complexity tax” harder and faster. Nearly 9 in 10 (89%) plan to increase AI investment over the next 12 to 24 months, yet only 15% have AI integrated across core business operations and 36% remain stuck in pilots.

"Mid-market IT leaders don't have time for AI that takes months to deliver value. They need AI that works inside the business they already run and shows value fast," said Srinivasan Raghavan, Chief Product Officer at Freshworks. "The companies that move from purchase to performance fastest will turn AI from a complexity tax into a competitive advantage.”

The ROI Reality Gap: IT is Being Judged on Timelines Shorter Than Deployment

Mid-market AI programs are stalling in the gap between executive expectation and deployment reality. While 72% of mid-market executives expect AI investments to show ROI within 8 months, 55% of organizations say deployment alone takes between 6 and 12 months before meaningful ROI can even begin.

The barriers are structural. System integration complexity (27%), skilled talent shortages (26%), and excessive configuration requirements (26%) are the top reasons pilots fail to become full programs. With deployment timelines running longer than the windows executives are watching, programs risk being cut before they can deliver value.

The Productivity Paradox: AI Was Supposed to Create Headroom, But For Most Mid-Market Teams It Has Done the Opposite

Managing AI is now adding to the workload it was meant to reduce, with teams fixing flawed outputs and governing tool sprawl across a growing stack of AI products.

More than 8 in 10 (86%) of mid-market IT leaders say managing AI complexity has actually increased their team’s workload, and 80% report that AI outputs are introducing noise, errors, or rework, a phenomenon the report terms “AI slop.” AI is generating work faster than it is eliminating it, and IT teams are absorbing the difference.

Sprawl is compounding the problem. Mid-market organizations use an average of 4.2 AI tools, with 10% running seven or more, yet only 33% have a formal, consistently applied AI governance framework. Separate Freshworks research found 71% of US mid-market IT leaders say unapproved “shadow AI” use is common inside their organization.

The Execution Pivot: Mid-market IT leaders Are Buying Differently

Mid-market organizations are responding to the AI complexity trap by changing how they buy. The new priority is AI that delivers value early, plugs into existing systems, and does not require a major build-out to work.

"Middle market businesses tend not to be early innovators and often lag in realizing full-scale implementation benefits until they are confident of ROI. Until then, smaller pilots and tests are often used to prove feasibility," said Doug Farren, Executive Director, National Center for the Middle Market.

Mid-market buying behavior is shifting decisively toward AI that works out of the box. A third (34%) of mid-market IT leaders name workflow integration as their top priority for the next two to three years, 90% favor built-in workflows over heavy configuration, and 54% are buying AI capabilities rather than building in-house.

To download the full report, visit https://www.freshworks.com/cost-complexity-mid-market-report-2026/.

Methodology
Freshworks surveyed 12,021 IT decision makers at director level and above across the US, UK, Germany, France, Singapore and India, within organizations of 250 or more employees, including over 9,000 mid-market organizations (up to 5,000 employees). Fieldwork took place in March 2026.

About Freshworks
Freshworks Inc. provides service software that delivers exceptional employee and customer experiences. Its enterprise-grade solutions are powerful yet intuitive, and quick to deliver value. With a people-first approach to AI, Freshworks helps teams be more effective and organizations more productive. Companies including Bridgestone, New Balance, S&P Global, and Sony Music trust Freshworks to improve service efficiency and fuel long-term loyalty. For the latest updates, visit freshworks.com and follow Freshworks on LinkedIn, X, and Facebook.

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Shares of Freshworks Inc. (FRSH - Free Report) have gained 10.4% over the past four weeks to close the last trading session at $9.38, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $11.82 indicates a potential upside of 26%.

The mean estimate comprises 11 short-term price targets with a standard deviation of $2.44. While the lowest estimate of $8.00 indicates a 14.7% decline from the current price level, the most optimistic analyst expects the stock to surge 70.6% to reach $16.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.

But, for FRSH, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Why FRSH Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The Zacks Consensus Estimate for the current year has increased 35.7% over the past month, as one estimate has gone higher compared to no negative revision.

Moreover, FRSH currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much FRSH could gain, the direction of price movement it implies does appear to be a good guide.

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Shares of Occidental Petroleum (NYSE:OXY | OXY Price Prediction) are up 45% year to date (YTD) heading into Tuesday’s open, an impressive performer among large U.S. oil producers in 2026. The question is whether OXY stock is genuinely running away from peers, or simply leading a tight pack.

For context, ConocoPhillips (NYSE:COP) stock is up 33% YTD, while Diamondback Energy (NASDAQ:FANG) stock has gained 37%. All three have ridden a sharp rebound in WTI crude oil, which climbed from the mid-$50s in early January to $103 recently.

The short answer to the title’s question: yes, OXY stock is the YTD leader, but the spread is moderate. Occidental’s edge over its peers is real but modest, and the lead is a recent development rather than a structural shift.

OXY Doesn’t Win on All Time Frames Stretch the window out and the picture changes. On a one-year basis, FANG stock is up 46%, COP stock is up 35%, and OXY stock is up 39%. Diamondback actually tops the three over twelve months.

Over five years, Diamondback is still the winner, with FANG up 157% and COP up 117% versus OXY at 131%. It seems, then, that the 2026 leadership reflects a sector rotation rather than a fundamental performance shift.

Why Occidental Has Been Out in Front The cleanest catalyst is the OxyChem chemicals divestiture to Berkshire Hathaway (NYSE:BRK-B), which closed January 2. Proceeds were used to cut principal debt by $5.8 billion, bringing total debt to $15 billion, and Occidental raised its quarterly dividend 8% to $0.26 per share.

Production trends helped. Occidental delivered Q4 2025 output of 1,481 thousand barrels of oil equivalent per day (Mboed), above the high end of guidance, with full-year EPS of $2.21 on revenue of $22.08 billion. Occidental Petroleum CEO Vicki Hollub stated the company remains “focused on generating resilient free cash flow” after the OxyChem sale.

There’s also the Warren Buffett factor. Berkshire Hathaway’s standing stake provides a marginal-buyer narrative that COP and FANG don’t have, and Occidental’s Direct Air Capture program adds a strategic-optionality angle peers lack. Insider data also shows eight board directors acquired shares on May 4, reinforcing the alignment signal.

ConocoPhillips Offers Scale and Diversification ConocoPhillips has its own story. Q1 2026 adjusted EPS came in at $1.89, beating the $1.69 consensus, on revenue of $16.05 billion. The Marathon Oil integration is generating more than $1 billion in run-rate synergies.

CEO Ryan Lance reiterated a plan to return 45% of cash flow from operations to shareholders, with $1 billion in Q1 2026 buybacks and the Alaska Willow project 50% complete. ConocoPhillips arguably offers the cleanest balance sheet of the three.

Diamondback Is a Pure-Play Permian Operator Diamondback Energy reported Q4 2025 adjusted EPS of $1.74 against a $2.41 consensus, weighed down by a $3.65 billion non-cash impairment and Permian gas takeaway constraints that pressured realizations. Oil output of 512.8 MBO/d hit the high end of guidance.

CEO Kaes Van’t Hof characterized the macro as a “yellow light” scenario and signaled Diamondback expects to “continue to be aggressive buyers of our stock until commodity prices recover”. FANG stock remains a high-quality Permian pure-play in this group.

What to Watch From Here The bull case for continued Occidental outperformance rests on three pillars: a supportive WTI tape, ongoing debt reduction freeing up capital returns, and any signal that Berkshire Hathaway is still accumulating. The bear case is the flip side: Occidental still carries more financial leverage than ConocoPhillips, and less pure-play upside than Diamondback if oil grinds higher.

Keep an eye on whether WTI crude oil holds the $100 level after its April 7 peak of $114.58, and watch for any updated Berkshire filings or fresh sector analyst notes. The next Occidental quarterly update will be the cleanest test of whether YTD leadership extends into the second half of the year.

The takeaway: yes, Occidental Petroleum is leading ConocoPhillips and Diamondback Energy in 2026 so far, but prudent investors should treat the gap as a moderate edge inside of a strong oil tape. All three names are working, but for different reasons.

Key Takeaways Cenovus generates significant upstream revenues from assets in Canada and Asia Pacific.CVE is set to benefit from WTI crude prices above $100 per barrel amid Middle East tensions.EIA projects 2026 WTI crude prices at $85.68 per barrel compared with $65.40 per barrel in 2025. Cenovus Energy Inc. (CVE - Free Report) has a diversified portfolio with assets spanning both upstream exploration and downstream refining. The company generates substantial revenues from its upstream operations, which are strategically spread across Canada and the Asia Pacific region. Since CVE is involved in the exploration and production of crude oil, its overall business model is highly sensitive to the volatility of global crude prices.

West Texas Intermediate (“WTI”) crude prices are trading above $100 per barrel, according to oilprice.com. This significant surge in crude prices is primarily driven by the ongoing conflict and geopolitical tensions in the Middle East. Brent crude oil is also trading above $110 per barrel, as per oilprice.com. These elevated WTI and Brent crude prices directly enhance the profitability and earnings potential of the Canadian integrated energy company’s upstream operations.

The U.S. Energy Information Administration (“EIA”) projects a continued favorable pricing environment in its short-term energy outlook. The EIA estimates that WTI crude prices will average $85.68 per barrel in 2026. This is significantly higher than the $65.40 per barrel recorded in 2025. The combination of robust current pricing and resilient EIA forecasts firmly positions Cenovus to capitalize on favorable market conditions.

Will FANG & XOM Gain From High Oil Prices?Like Cenovus, Diamondback Energy, Inc. (FANG - Free Report) and Exxon Mobil Corporation (XOM - Free Report) have a significant presence in upstream operations, exposing their business models to crude price volatility.  

Diamondback Energy operates as a premier, Permian-focused independent oil and gas producer in Texas. FANG focuses on multi-layered intervals in the Spraberry, Wolfcamp and Bone Spring formations, maximizing production through advanced horizontal drilling and high-intensity completion techniques.

ExxonMobil drives growth through a geographically diversified, high-quality asset base. XOM has advantaged assets in the Permian Basin, the most prolific basin in the United States and offshore Guyana.

Therefore, a strong footprint in upstream operations, coupled with elevated crude prices, is likely to benefit FANG and XOM.

CVE’s Price Performance, Valuation & EstimatesCenovus shares have gained 139.8% over the past year compared with 109.8% growth of the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, CVE trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 7.79X. This is below the broader industry average of 8.15X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CVE’s 2026 earnings has remained constant over the past seven days.

Image Source: Zacks Investment Research

CVE currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways WTI stays above $100 amid Middle East tensions, keeping Permian trio FANG, XOM and CVX in the spotlight.EIA projects Permian crude at 6.63MM bpd this year vs. 6.58MM last year, a tailwind for FANG, XOM and CVX.FANG cites 8,854 Permian sites; XOM says proppant lifts recovery up to 20%; CVX says fewer rigs boost volumes. Oil prices have been making newspaper headlines, as the Iran war shock has pushed commodity prices back toward their glory days. Although the tensions have made the stock market highly uncertain, energy stocks have retained their appeal. Is it time to bet on stocks such as Diamondback Energy, Inc. (FANG - Free Report) , Exxon Mobil Corporation (XOM - Free Report) and Chevron Corporation (CVX - Free Report) ?

High Oil Price to Aid Permian Producers?West Texas Intermediate (“WTI”) crude is trading at more than the $100-per-barrel mark. The high prices are being driven by ongoing tensions in the Middle East. The U.S. Energy Information Administration (“EIA”) in its latest short-term energy outlook projected WTI at $85.68 per barrel this year, higher than $65.40 last year. A highly favorable pricing environment for the commodity is likely to continue supporting exploration and production activities.

In this regard, the upstream players that are operating in the Permian, the most prolific basin in the United States, are likely to continue to gain from the ongoing strength in oil prices. In the outlook, EIA estimated that total crude oil production in the Permian would be 6.63 million barrels per day this year, higher than 6.58 million barrels per day last year.

Thus, with high prices of the commodity, production will likely increase in the most prolific basin, aiding the bottom lines of explorers and producers operating in the basin.

3 Permian Players in the SpotlightDiamondback Energyis a well-known name among pure-play Permian players. In the prolific basin, FANG has a huge and high-quality drilling site, with the company estimating it at roughly 8,854 gross locations. The upstream energy major mentioned that those wells are economical even if the price of oil fell to $50 per barrel. Thus, with premium drilling inventories and an investment-grade balance sheet, Diamondback Energy, sporting a Zacks Rank #1 (Strong Buy), is likely to capitalize on the ongoing strength of oil prices.

ExxonMobilhas a strong footprint in the Permian and is among the advantageous assets that the energy major believes will contribute to its long-term production growth. In the Permian, the integrated giant has been employing lightweight proppant technology and hence has been capable of boosting its well recoveries by up to as much as 20%. With the acquisition of Pioneer Natural Resources in 2024, XOM enhanced its footprint in the basin, further strengthening its production outlook while realizing significant cost synergies. Thus, XOM, with a Zacks Rank of 1, is also well poised to gain like FANG. You can see the complete list of today’s Zacks #1 Rank stocks here.

Chevron also has a strong footprint in the Permian. CVX mentioned that it has an interest in one of every five wells in the most prolific basin. Over the years, while growing its operations in Permian, Zacks #1 Ranked CVX has been able to generate more production while employing lower capital spending, thanks to advanced drilling techniques. Chevron added that to increase its oil and gas volumes, it is now employing significantly fewer rigs. Thus, like XOM and FANG, CVX is also strongly placed now.

Key Takeaways WTI above $95/barrel is spurring Permian drilling, raising oil output and associated gas.EIA sees Permian crude 6.63MM bpd this year vs. 6.58MM last year; gas rising into next year.FANG's Q1 mix was over half oil, with the rest natural gas and NGLs, positioned for higher output. High oil prices have been making newspaper headlines, as the Iran war shock has pushed commodity prices back toward their glory days. Handsome oil prices are supporting increased crude production, which is boosting associated natural gas output from wells in prolific basins. Could this trend brighten the business outlook for Diamondback Energy, Inc. (FANG - Free Report) , Exxon Mobil Corporation (XOM - Free Report) and Chevron Corporation (CVX - Free Report) ?

More Oil Drilling Brings Up Extra Natural GasThe price of West Texas Intermediate (“WTI”) crude is trading above $95 per barrel, which is highly favorable for exploration and production activities. Increased drilling and upstream activities will likely result in higher production of the commodity in the Permian, the most prolific basin in the United States. The U.S. Energy Information Administration (“EIA”) in its latest short-term energy outlook estimated that total crude oil production in the Permian would be 6.63 million barrels per day this year, higher than 6.58 million barrels per day last year.

This higher crude production, being backed by extremely handsome prices, is bringing up additional associated natural gas, especially in the Permian, the EIA added. Thus, the production of natural gas will likely continue to rise through next year, EIA believes.

Increased production of both oil and natural gas is going to aid the earnings of explorers and producers in the Permian Basin.

3 Permian Players in the SpotlightDiamondback Energy is a well-known pure-play Permian player. In the first quarter of this year, the company's oil production was responsible for more than 50% of total volumes, while the rest was natural gas and natural gas liquids. FANG, sporting a Zacks Rank #1 (Strong Buy), is well-positioned to capitalize on rising oil prices and increasing gas production.

ExxonMobil, with a Zacks Rank of 1, has a strong footprint in the Permian and is among the advantageous assets that the energy major believes will contribute to its long-term production growth. In the Permian, the integrated giant has been employing lightweight proppant technology and hence has been capable of boosting its well recoveries by up to as much as 20%. Production of liquids by XOM in the first quarter of 2026 accounted for more than 70% of total volumes, while the rest was natural gas. Thus, like FANG, XOM is also in a sweet spot now. You can see the complete list of today’s Zacks #1 Rank stocks here.

Chevron also has a strong footprint in the Permian. CVX mentioned that it has an interest in one of every five wells in the most prolific basin. Over the years, while growing its operations in Permian, Zacks #1 Ranked CVX has been able to generate more production while employing lower capital spending, thanks to advanced drilling techniques. Being a producer of both oil and natural gas, the company is well-positioned to gain.

Diamondback Energy (FANG) is downgraded to Buy after a ~40% rally, though valuation remains attractive. FANG delivered strong Q1 results, raised production guidance, expects accelerated debt reduction, and increased its dividend and buybacks. Macroeconomic risks from the Iran conflict and potential inflationary shocks warrant a higher margin of safety for oil equities.

An Exxon senior vice president just told Tom Bilyeu’s Impact Theory podcast that physical Brent cargoes are heading to $150 to $160 per barrel in the coming weeks as global inventories approach all-time lows. Brent closed last Tuesday at $102.75. If that warning lands, every barrel-levered name on US exchanges reprices by the end of summer, and the window to position is closing now.

I’ve been covering energy equities through three crude cycles, and the setup heading into June 2026 is the most asymmetric I’ve seen since the 2022 spike. Below are the five names I’d own if the SVP’s call cashes.

1. Texas Pacific Land Corp (TPL): The Royalty Cheat Code Start here, because almost nobody outside energy circles understands what Texas Pacific Land Corporation (NYSE:TPL | TPL Price Prediction) actually is. TPL owns the dirt under one of the most productive stretches of the Permian Basin. The business model is pure royalty: every barrel pumped on its acreage by someone else flows back as a royalty check at near-100% margin, with no drilling and no hedging. When crude rips 40% higher, TPL’s cash flows rip with it, no capex required. CEO Tyler Glover said it plainly: "With our unhedged commodity position, we will fully capture the upside from elevated commodity prices."

Q1 2026 was already a record before the spike hits. Revenue came in at $236.82 million against $195.98 million a year earlier, oil and gas royalty production jumped 19.3% to 37.1 thousand Boe/d, and adjusted EBITDA margin sat at a stunning 77%. The balance sheet carries $247.6 million in cash and zero debt. There is no operational drag on a price spike here. The stock has cooled 15% over the past month from its May peak, which is exactly the kind of pause that frustrates late buyers and rewards the early ones.

The royalty model is the cleanest setup on this list. The next name is the one waving the red flag in the first place.

2. ExxonMobil (XOM): The Company Sounding Its Own Alarm The irony of stock #2 is that the warning came from inside this house. Exxon Mobil Corporation (NYSE:XOM) is the largest US integrated, with Permian dominance upstream and a refining footprint that captures margin on both ends of a price spike. When crude goes vertical, Exxon captures wellhead realizations, refining crack spreads, and trading desk optimization in the same quarter. CEO Darren Woods told investors after Q1 that "Events in the Middle East tested that strength… underscored the importance of reliable, affordable energy products."

Q1 2026 already showed the earnings engine working through chaos. Underlying earnings hit $8.77 billion versus $7.58 billion a year ago, even after stripping out $3.88 billion in mark-to-market derivative losses and $706 million in Middle East disruption losses. Adjusted EPS of $1.16 beat consensus, the fourth straight beat. Management plans $20 billion in buybacks for 2026 against $27 to $29 billion of capex. The stock has already done work, up 26% year to date and 51% over the past year, yet retail is still piling in. A single Reddit post titled "Exxon warns oil inventories near record lows, price spike ahead" pulled 596 upvotes and 93 comments on June 1. The narrative is going mainstream.

Exxon is the bellwether. The next name is the Permian pure-play with a famous shareholder.

3. Occidental Petroleum (OXY): The Buffett-Backed Crude Beta Berkshire Hathaway’s largest energy holding is also the cleanest Permian operator on the list. Occidental Petroleum Corporation (NYSE:OXY) just stripped the OxyChem business off its balance sheet in a sale to Berkshire that closed January 2, 2026, using proceeds to crush principal debt by $5.8 billion to $15 billion total. A delevered Permian operator going into a $150 print is exactly the asymmetric setup Buffett tends to want to own.

The stock has already moved 44% year to date and 48% over the past year, yet still trades at a forward P/E of 12. Q4 2025 production exceeded the high end of guidance at 1,481 Mboed, and management hiked the dividend 8% to $0.26 per share quarterly, a payout that has doubled over four years. With debt cut and OxyChem off the deck, every dollar of crude upside flows straighter to free cash than at any point in Occidental’s recent history.

OXY is the deleveraging play. Stock #4 wins regardless of which producer drills the next well.

4. Schlumberger (SLB): The Picks and Shovels When producers scramble to add capacity into a price spike, demand for drilling, completions, and services explodes. Schlumberger Limited (NYSE:SLB) is the global infrastructure trade. The company gets paid whether ExxonMobil or Diamondback or Aramco is pulling the next barrel out of the ground. CEO Olivier Le Peuch already told investors he expects "postconflict liquid commodity prices to remain above preconflict levels due to near-term supply disruptions" with a sustained geopolitical risk premium.

Q1 2026 revenue came in at $8.72 billion, up 2.7% year over year, with the ChampionX acquisition contributing $838 million in revenue. Digital ARR crossed $1 billion, up 15% year over year, with Data Center Solutions up 45%. Management committed to $4 billion-plus in shareholder returns for 2026. Shares are still up 71% over the past year and 43% year to date, and a recent 4% weekly pullback looks like a gift if the SVP’s call cashes.

SLB is the diversified bet. Stock #5 is the undiluted one, and it has been the most beaten up of the bunch.

5. Diamondback Energy (FANG): The Pure Permian Punchline This is the payoff. Diamondback Energy (NASDAQ:FANG) is a Permian pure-play with some of the lowest break-evens in the basin and maximum operational torque to crude. Q4 2025 was ugly: a $3.65 billion non-cash impairment from the SEC ceiling test crushed GAAP earnings to a $5.11 per share loss, and Q4 realized oil prices collapsed to $58.00 per barrel from $69.48 a year earlier. That impairment is exactly the kind of mark that reverses violently when crude reprices higher.

The cleanest expression of the trade lives here. Diamondback repurchased roughly 5% of its shares in 2025 ($2.0 billion across 13.84 million shares), with $2.3 billion remaining on the $8 billion authorization, and CEO Kaes Van’t Hof said "We expect to continue to be aggressive buyers of our stock until commodity prices recover." Forward P/E sits at 9 against an analyst target of $232.86, with the current price near $200.60. Q1 oil production guided to 500 to 510 MBO/d for 2026, unhedged enough to mean every $10 move on the barrel hits the income statement with force.

The Bottom Line Brent at $102.75 versus an Exxon insider calling for $150 to $160 is the kind of asymmetric setup the market rarely telegraphs in advance. The EIA already estimates global oil inventories will fall by an average of 8.5 million barrels per day in Q2 2026, and Bilyeu warned on the same podcast that "any company that’s in a weakened position or is extremely exposed to energy costs, poof, they just stop existing," pointing to Spirit Airlines as the early warning. Royalties, integrateds, Permian pure-plays, and services each capture the spike differently. The window to choose is the next few weeks, not the next few quarters.

Key Takeaways WTI above $90 may make XOM's Permian output lucrative, with breakevens at $69/$63 per barrel.XOM says it's aligned to grow Permian production to 1.8MM oil-equivalent barrels this year.FANG cites 8,854 Permian locations and says wells stay economical even if oil drops to $50 a barrel. ExxonMobil Corporation (XOM - Free Report) has a massive footprint in the Permian, the most prolific oil and gas play in the United States, and offshore Guyana. In the Permian, the integrated giant has been employing lightweight proppant technology and hence is capable of boosting its well recoveries by up to as much as 20%. 

Let’s delve a little deeper into why operating in the Permian, the most prolific basin in the United States, is going to be the game-changer for the integrated energy giant. According to the data from the Federal Reserve Bank of Dallas, the breakeven price for new wells in the Midland, a sub-basin of the Permian, is $69 per barrel. For Delaware, another sub-basin, the Federal Reserve Bank of Dallas estimated the price at $63 per barrel.

With West Texas Intermediate (“WTI”) crude trading at more than $90 per barrel, XOM’s operations in the Permian are likely going to be lucrative as the breakeven costs are lower. Investors should note that on the first-quarter earnings call, XOM mentioned that it is staying aligned with its plan to grow production in its most prolific basin to 1.8 million oil-equivalent barrels this year. Thus, high price and increased production are expected to aid XOM’s top and bottom lines.

Will FANG & CVX Will Benefit From Low Costs?Diamondback Energy, Inc. (FANG - Free Report) and Chevron Corporation (CVX - Free Report) also have a solid footprint in the Permian, where the cost of operations is low.

Diamondback Energy is a well-known name among pure-play Permian players. In the prolific basin, FANG has a huge and high-quality drilling site, with the company estimating it at roughly 8,854 gross locations.  FANG mentioned that those wells will remain economical even if the price of oil falls to $50 per barrel.

Chevron also has a strong footprint in the Permian. CVX mentioned that it has an interest in one of every five wells in the most prolific basin. Over the years, while growing its operations in Permian, CVX has been able to generate more production while employing lower capital spending, thanks to advanced drilling techniques.

XOM’s Price Performance, Valuation & EstimatesShares of XOM have gained 46.2% over the past year compared with the 45.5% improvement of the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA of 9.90X. This is above the broader industry average of 6.44X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for XOM’s 2026 earnings has seen upward revisions over the past 30 days.

Image Source: Zacks Investment Research

XOM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The CEOs of Chevron (CVX +1.18%) and ExxonMobil (XOM +1.35%) have both warned that oil prices aren't fully reflecting the on-the-ground situation in the oil market. The latest update on that comes from the United States, where U.S. oil reserves are getting dangerously low, with a warning from refiner Phillips 66 (PSX +1.98%) about the issue. What's going on and what should investors do now?

Oil is a global commodityOil is global, so events in the Middle East affect the rest of the world. Oil exports from the U.S. market rose as flows from the Middle East were constrained, with oil users seeking supplies from wherever they were available. U.S. oil production isn't directly affected by the war, and the country is one of the world's largest oil producers, so it was a logical place to look. Companies like Devon Energy (DVN +1.95%) and Diamondback Energy (FANG +1.21%) are likely to be net beneficiaries from high oil prices and increasing demand for U.S. oil.

Image source: Getty Images.

However, the real risk in the drawdown on U.S. stockpiles is that it can only go on for so long before the high level of exports will likely need to be curtailed. At the end of May, inventory in Cushing, a key U.S. energy hub, stood at 22.4 million barrels, down four million barrels from February. Industry watchers warn that hitting 20 million barrels could pose operational challenges for energy companies.

So U.S. oil is just a temporary solution to the much bigger problem posed by the Middle East conflict. There simply isn't enough oil to go around right now, which is basically what Chevron and Exxon have been saying. Oil is a commodity, so prices rise when supply is constrained and demand is high.

Emotions are driving the oil marketThe problem is that Wall Street is usually driven by emotions over short periods of time. Chevron and Exxon are looking at the bigger picture, with time frames that look out a decade or more. Investors, given the dramatic, rapid swings in oil prices, are watching news from the Middle East conflict and reacting immediately.

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Energy industry executives are pretty clear that there is no quick solution to the current oil shortfall. It could take months to resolve the bottleneck in the Middle East, and the healing process won't actually start until the conflict ends. There's no end in sight at this point.

Investors should tread with caution. It is tempting to take an aggressive position, betting that oil prices rise materially. That's what Chevron and Exxon are warning about, after all. Pure-play drillers like Devon and Diamondback would be solid choices in such a scenario.

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However, given the disconnect between prices and industry fundamentals, it is also clear that emotions are currently more important than industry fundamentals in the oil market. Given that, it probably makes sense to hedge your bets a little. For most investors, the best option is likely to be integrated industry giants like Chevron and Exxon. They have globally diversified portfolios, exposure across the entire energy value chain, and best-in-class balance sheets. They are built from the ground up to survive the entire energy cycle, as evidenced by each having increased its dividend annually for decades.

Chevron and Exxon are ready for the worst-case scenarioNeither Chevron nor Exxon is likely to be the biggest beneficiary of high oil prices, but they will benefit materially nonetheless. So buying either one will give you good exposure to the upside in oil prices that both companies are warning about. However, they are also well-positioned to deal with low oil prices, which provides investors with an important backstop if emotionally driven oil prices move in unexpected ways.

Given the importance of oil to the global economy, most investors should have exposure to the energy sector. Companies like Chevron and Exxon are solid, long-term choices for that exposure.

In the latest close session, Jabil (JBL - Free Report) was down 1.52% at $337.26. The stock trailed the S&P 500, which registered a daily gain of 0.81%. Meanwhile, the Dow experienced a rise of 0.73%, and the technology-dominated Nasdaq saw an increase of 1.03%.

The electronics manufacturer's shares have seen an increase of 27.42% over the last month, surpassing the Computer and Technology sector's gain of 17.98% and the S&P 500's gain of 9.47%.

The investment community will be closely monitoring the performance of Jabil in its forthcoming earnings report. It is anticipated that the company will report an EPS of $3.08, marking a 20.78% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.53 billion, indicating a 8.95% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $12.3 per share and a revenue of $34.02 billion, demonstrating changes of +26.15% and +14.15%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Jabil. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Jabil is carrying a Zacks Rank of #2 (Buy).

In terms of valuation, Jabil is currently trading at a Forward P/E ratio of 27.72. For comparison, its industry has an average Forward P/E of 30.82, which means Jabil is trading at a discount to the group.

We can additionally observe that JBL currently boasts a PEG ratio of 1.62. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Electronics - Manufacturing Services industry had an average PEG ratio of 0.92 as trading concluded yesterday.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 11, which puts it in the top 5% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Key Takeaways JBL is expanding manufacturing for AI servers, liquid cooling, silicon photonics and cloud infrastructure.JBL announced a $500M U.S. manufacturing expansion to support rising AI data-center demand.JBL and Intel are developing 800G silicon photonics optical modules for faster, reliable data transmission. Jabil, Inc. (JBL - Free Report) is aggressively expanding manufacturing capabilities for AI servers, liquid cooling, silicon photonics and cloud infrastructure. The company is aiming to become a core infrastructure and smart-manufacturing partner for the AI economy and announced a $500 million U.S. manufacturing expansion to support AI data center demand.

Jabil's extensive manufacturing footprint and strong expertise position it as an ideal partner in the burgeoning AI/ML ecosystem. The company's commitment to providing unparalleled value to customers underscores its importance in the optical module space. The company’s 800G silicon photonics-based optical transceiver modules are designed to fuel the AI/ML revolution, delivering unparalleled performance and scalability through collaborations with industry giants.

Jabil has partnered with Intel Corporation (INTC - Free Report) to leverage the latter’s cutting-edge silicon photonics platform, renowned for its manufacturing efficiency and reliability. Coupled with Jabil's world-class manufacturing capabilities and Intel’s technology prowess, the partnership sets a new standard for speed, efficiency and reliability in data transmission. Intel's volume-proven silicon photonics platform, with on-chip laser sources fabricated, tested and burned-in at wafer scale, ensures unparalleled reliability and simplicity in module integration. With a focus on reliability, scalability and performance, the new 800G optical transceiver modules are poised to drive significant advancements in data-intensive applications.

End-Market Diversification Aids JBL     Jabil is benefiting from strength in telecommunications, healthcare, cloud, energy, automotive, retail and industrial end markets with an integrated portfolio and after-market services. The company is likely to gain from the rapid adoption of 5G wireless and cloud computing in the long run. Healthy demand trends, diligent execution of operational plans and skillful management of supply chain dynamics are tailwinds for the company.

Jabil’s focus on end-market and product diversification is a key catalyst. The company’s target that “no product or product family should be greater than 5% operating income or cash flows in any fiscal year” is commendable. The diversification increases the reliability of the company’s earnings and revenues, thereby driving long-term returns for investors.

With a presence across 100 locations in 30 countries, Jabil is likely to gain from secular growth drivers with strong margins and cash flow dynamics. Moreover, its unmatched end-market experience, technical and design capabilities, manufacturing know-how, supply chain insights and global product management expertise have put it in good standing. Its extensive global footprint is further strengthened by a centralized procurement process, which, coupled with a single Enterprise Resource Planning system, aids customers with end-to-end supply chain visibility. The company has recorded a healthy revenue growth over the years, barring an occasional blip.

Image Source: Zacks Investment Research

Price PerformanceJabil has gained 127% over the past year compared with the industry’s growth of 188.3%. It has lagged peers like Flex Ltd. (FLEX - Free Report) and Celestica Inc. (CLS - Free Report) over this period. While Flex has gained 245.7%, Celestica surged 314%. 

One-Year JBL Stock Price Performance

Image Source: Zacks Investment Research

Estimate RevisionEarnings estimates for Jabil for fiscal 2026 and fiscal 2027 have moved up 20.9% to $12.30 and 19.6% to $14.35, respectively, over the past year. The positive estimate revision depicts bullish sentiments about the stock’s growth potential.

Image Source: Zacks Investment Research

End NoteJabil is bullish on its long-term prospects. The company is well-positioned to capitalize on growth opportunities in areas such as AI data center hardware, power and energy infrastructure, software-defined electric and hybrid vehicles, and healthcare. Strong margins and robust free cash flow are likely to enable continued investment in profitable growth and capital returns to shareholders.

Management believes that the company's strategic direction and financial strength will allow it to navigate current challenges better and emerge stronger, with a focus on high-potential sectors for future growth.

The uptrend in estimate revisions further portrays positive sentiments about the stock’s growth potential. JBL has a long-term earnings growth expectation of 17.1% and delivered a trailing four-quarter average earnings surprise of 7.9%. It has a VGM Score of B. With a Zacks Rank #2 (Buy), Jabil appears primed for further stock price appreciation. Consequently, investors are likely to profit if they bet on this high-flying stock now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ST. PETERSBURG, Fla.--(BUSINESS WIRE)--Jabil Inc. (NYSE: JBL), a global leader in engineering, supply chain, and manufacturing solutions, today announced it is scheduled to participate in a fireside chat at the J.P. Morgan Global Technology, Media and Communications Conference on Tuesday, May 19, 2026, at 10:45 AM EDT. A live audio webcast and replay of the events will be accessible on the Jabil Investor Relations website at https://investors.jabil.com. About Jabil: At Jabil (NYSE: JBL), we are.