Five9 FIVN is set to report its second-quarter 2025 results on July 31.
The company expects revenues in the band of $274.5-$275.5 million for the second quarter. The Zacks Consensus Estimate for revenues is pegged at $275.1 million for the quarter, suggesting a 9.1% rise from the year-ago quarter’s reported figure.
Non-GAAP earnings are expected in the range of 64-66 cents per share for the second quarter. The Zacks Consensus Estimate for earnings stands at 65 cents, indicating a 25% year-over-year increase. The figure has remained unchanged over the past 60 days.
FIVN’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19.3%.
Five9, Inc. Price and EPS Surprise
Five9, Inc. price-eps-surprise | Five9, Inc. Quote
Let us see how things have shaped up for the upcoming announcement.
Factors Likely to Influence FIVN’s Q2 Results
Five9’s second-quarter 2025 performance is expected to have benefited from sustained momentum in its enterprise AI revenues. In the last reported financial results for the first quarter, enterprise AI revenues jumped 32% year over year and accounted for 9% of its enterprise subscription sales. This trend is likely to have carried into the second quarter as the company continues to push toward AI-based solutions — an area that not only attracts higher-value contracts but also supports long-term profitability.
Five9 has entered 2025 on a solid financial footing. It posted a strong 18.8% adjusted EBITDA margin and $35 million in free cash flow in the first quarter. This operational efficiency gives Five9 a cushion to invest further in product innovation and customer acquisition — two key drivers that are likely to have contributed to the second-quarter strength as well.
Strategic partnerships also seem to have contributed significantly to Five9’s second-quarter growth. Ties with big names like Salesforce, Microsoft, ServiceNow, Verint and Google help the company build more tailored AI tools and improve its integration across platforms. This is anticipated to have helped FIVN win new clients and hold on to existing ones in the to-be-reported quarter.
However, macroeconomic headwinds, such as persistent inflation, still-high interest rates and currency fluctuations, are expected to have affected Five9’s performance in the quarter under review.
What Our Model Says About FIVN’s Q2 Earnings
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the exact case here.
Though Five9 carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Meta Platforms META has an Earnings ESP of +2.91% and presently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Meta Platforms is set to report second-quarter 2025 results on July 30. The Zacks Consensus Estimate for the second-quarter earnings is pegged at $5.83 per share, revised upward by 5 cents over the past seven days. Estimates for Meta Platforms’ EPS for the second quarter indicate year-over-year growth of 13%.
Lam Research LRCX is set to report fourth-quarter fiscal 2025 results on July 30. The stock has an Earnings ESP of +2.71% and presently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Lam Research’s fourth-quarter earnings is pegged at $1.20 per share, which has remained unchanged over the past 60 days. Estimates for Lam Research’s fourth-quarter EPS imply year-over-year growth of 48.2%.
QUALCOMM QCOM is set to report third-quarter fiscal 2025 results on July 30. The stock has an Earnings ESP of +0.60% and presently carries a Zacks Rank #3.
The Zacks Consensus Estimate for QUALCOMM’s third-quarter earnings is pegged at $2.68 per share, which has remained unchanged over the past 60 days. The consensus estimate for QUALCOMM’s EPS for the third quarter calls for a year-over-year increase of 15%.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
