Chennai, May 06: Freshworks Inc., a leading provider of uncomplicated software for enhanced employee and customer experiences, today announced its financial results for the first quarter ended March 31, 2026, highlighting continued growth, expanding enterprise traction, and rising adoption of its AI-driven Employee Experience (EX) platform.
The company reported strong year-over-year revenue growth for the quarter, driven by increasing demand for its EX solutions, accelerating ARR expansion, and growing adoption of its AI Copilot offerings. Freshworks also achieved its sixth consecutive quarter of exceeding expectations, underscoring sustained business momentum.
Dennis Woodside, CEO & President of Freshworks, stated that the company continues to see strong traction in its EX platform, supported by improving net dollar retention and expanding enterprise engagement. He noted that strategic investments in AI and employee experience solutions are resonating strongly with customers, positioning the company for long-term sustainable growth and improved profitability.
Key Highlights for Q1 2026
- Continued double-digit year-over-year revenue growth
- Expansion in high-value customer base, with significant growth in customers contributing over $5,000, $50,000, and $100,000 in annual recurring revenue
- Strong net dollar retention, reflecting healthy customer expansion and retention trends
- Ongoing momentum in AI Copilot adoption across enterprise customers
- Major enterprise wins, including one of the largest deals in company history and the first seven-figure ARR agreement
- Integration of Device42 capabilities into Freshservice, strengthening its unified AI-powered platform
- Strengthening of global leadership structure with new appointments in revenue and global channel leadership
Business and Operational Updates
Freshworks onboarded several new enterprise customers across industries, including manufacturing, security services, education, and SaaS. The company continues to expand its global footprint and strengthen its platform capabilities through product integration and organizational alignment.
Outlook
For the upcoming quarter and full year 2026, Freshworks expects continued revenue growth in the mid-teens range, alongside improving non-GAAP operating income and earnings per share. The company remains focused on scaling its AI-powered EX platform while driving long-term value creation for customers and shareholders.
