Why Freshworks (FRSH) Is Building Its Agentic AI Case Around Freddy and Enterprise Adoption

Freshworks Inc. (NASDAQ:FRSH) is one of the fastest-growing agentic AI stocks to buy.

A current read on our thesis for the stocks came on March 4, 2026, when management said at the Morgan Stanley Technology, Media & Telecom Conference that Freshworks’ employee-experience business had surpassed $500 million in ARR and was growing 20% year over year in constant currency. Management also said AI adoption had reached 8,000 customers contributing more than $25 million in ARR, and argued that AI products are becoming a growth driver across the platform rather than just a defensive add-on.

Why Freshworks (FRSH) Is Building Its Agentic AI Case Around Freddy and Enterprise Adoption

A product-level signal came two days earlier, when Freshworks updated its documentation around Agentic Workflows, including support for business-hours conditions. Its current Freddy AI Agent materials also highlight 50+ agentic workflows and integrations with systems such as Shopify, Stripe, PayPal, and FedEx, showing that the company is still building out more autonomous, workflow-aware tools rather than stopping at basic copilots.

Earlier, on February 10, 2026, Freshworks reported fourth-quarter revenue of $222.7 million, up 14% year over year, while full-year revenue rose 16% to $838.8 million. It also swung to full-year GAAP operating income of $13.2 million from a loss in 2024, finally putting some meat on the bones of its growth story, rather than the usual SaaS promise soup.

Freshworks Inc. (NASDAQ:FRSH) provides customer and employee service software, with Freddy AI embedded across support and IT workflows.

While we acknowledge the risk and potential of FRSH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FRSH and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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