Cantor Fitzgerald has trimmed its price target for Five9, Inc (NASDAQ:FIVN) to $26 from $32 but maintained an Overweight rating on the contact center software provider.
The change in target follows Five9's fourth-quarter 2025 financial disclosure, which outperformed revenue expectations and showed margins that exceeded Cantor Fitzgerald's estimates. Free cash flow reached 22% of revenue for the period, a figure that surpassed both Street estimates and Cantor Fitzgerald's internal forecasts.
Despite the quarter's operational strengths, Five9's share price has been under pressure. The stock has fallen 59% over the trailing year, trading at $17.18 at the time cited. InvestingPro analysis cited in the report indicates the shares are currently trading below their Fair Value and lists Five9 among the platform's most undervalued equities.
Management highlighted two principal growth vectors: enterprise adoption of artificial intelligence capabilities and core contact center as a service offerings. The company reported record bookings in the fourth quarter, and enterprise AI bookings more than doubled on a year-over-year basis. Management also stated they are not seeing pricing pressures in the market.
Executives attribute recent gains to platform sales that support both human-assisted and fully automated AI-driven customer experience solutions - a combination the company says is fuelling enterprise growth across the industry.
Cantor Fitzgerald said the new $26 target reflects compression in valuation multiples across the software sector. Under that valuation, the $26 target equates to 1.5 times calendar year 2027 revenue and roughly 9 times free cash flow.
Five9 sits among the more than 1,400 U.S. equities covered by comprehensive Pro Research Reports, according to the note, which transforms financial data into analyst perspectives and visualizations for investors seeking deeper insight.
Additional company developments and analyst actions
In other disclosures tied to the quarter, Five9 reported total revenues for Q4 up 7.8% year-over-year. Subscription revenue growth accelerated to 12% in the quarter, up from 10% in the previous quarter, and management indicated that the acceleration was driven primarily by subscription revenue rather than usage revenue.
Following the results, Needham kept a Buy rating on Five9 with a $40 price target. At the same time, Evercore ISI lowered its price target to $24 while maintaining an Outperform rating, citing concerns about the growth outlook.
The company also announced an executive transition: Amit Mathradas is set to become CEO in February 2026. Current CEO Michael Burkland will remain in his role until that transition and will continue as a member of the Board of Directors thereafter.
Strategic partnerships were also highlighted. Five9 expanded its collaboration with Google Cloud to deliver an Enterprise CX AI offering intended to enhance customer experience solutions.
Finally, the report notes a personnel move linked to Five9: Genefa Murphy, a former Five9 chief marketing officer, has been appointed Chief Marketing Officer at JFrog.