Baird Lowers Freshworks (FRSH) PT to $16, Maintains Neutral Rating

Freshworks Inc. (NASDAQ:FRSH) is one of the best enterprise software stocks to buy according to analysts. On September 15, Baird lowered the firm’s price target on Freshworks to $16 from $18, while keeping a Neutral rating on the shares. This sentiment was posted ahead of the company’s Q3 2025 earnings report.

Freshworks’ revenue reached $204.7 million in Q2 2025, which was an 18% year-over-year increase. Profitability metrics also saw significant improvement, with the non-GAAP operating margin expanding to 22% and the adjusted free cash flow margin standing at a robust 27%. The company ended the quarter with ~$926 million in cash, cash equivalents, and marketable securities.

The company’s two main segments showed solid growth, particularly the Employee Experience/EX business, which achieved over $450 million in ARR, which was a 24% year-over-year increase. The Customer Experience/CX business’s ARR exceeded $380 million, which grew 11%. The customer base grew to over 74.6K, including major new customers like Seagate and AEP Energy. Customers contributing over $5,000 in ARR totaled 23,975, which was a 10% growth.

Freshworks Inc. (NASDAQ:FRSH) is a software development company that provides SaaS products in North America, Europe, the Middle East, Africa, Asia Pacific, and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.