Oppenheimer has revised its target price on Freshworks Inc. (NASDAQ: FRSH) down to $15.00 from $18.00 but left its Outperform rating unchanged. The firm made the change while noting both the companys recent operational gains and the market factors that drove the valuation shift.
At the time of the note, Freshworks shares were trading at $8.73, close to a 52-week low of $8.45, and the stock has fallen more than 51% over the past year. Oppenheimers move follows the companys fourth-quarter 2025 results, which the research house described as "good," calling out momentum across Freshworks EX business and its AI product set as drivers of strength.
The quarter delivered a record gross margin and top-line outperformance that, according to Oppenheimers analysis, translated into higher profits. Freshworks reported fourth-quarter 2025 earnings per share of $0.14, beating the consensus $0.11 estimate, and generated revenue of $222.7 million versus an expected $218.76 million. Despite those beats, the stock slipped modestly in after-hours trading and closed at $8.60, slightly above the 52-week low.
Oppenheimer also highlighted several headwinds. The firm noted a downward shift in operating margins in the fourth quarter and flagged 2026 guidance that reflects managements decision to invest for future growth, which could pressure near-term profitability. On the customer-expansion front, constant-currency net revenue retention was 104% in Q4, and management guided to a 105% NRR for Q1, a level Oppenheimer indicated suggests a meaningful recovery in expansion activity is not imminent.
The primary reason the research house trimmed its price target was lower peer group multiples. Still, Oppenheimer emphasized Freshworks consistency in revenue growth, profit margins, and cash generation, and said those factors, combined with the companys low multiples and strong balance sheet, could support increased capital returns to shareholders over time.
Context and market reaction
Although Freshworks delivered results that exceeded analyst expectations for the quarter, the valuation recalibration by Oppenheimer underscores how shifts in comparable-company valuations can influence analyst targets even when company-level execution is supportive. The combination of margin investment and tempered expansion metrics weighed on near-term sentiment despite the beat on revenue and EPS.
The stocks proximity to its 52-week low and the noted year-over-year decline frame the analyst action in a market context where both operational momentum and external valuation pressure are present.