Five9, Inc. (FIVN) Stock Price & How to Invest

Five9 sells contact center software as a service, usually shortened to CCaaS. Instead of a company buying phone hardware and dialer systems for its support floor, it rents Five9's cloud platform, which routes calls, chats, emails, SMS and social messages to agents, records and scores those interactions, handles workforce scheduling, and increasingly answers routine contacts with automated voice and chat agents before a human is involved. Customers are mid-market and enterprise operations with anywhere from dozens to tens of thousands of seats, in industries like healthcare, financial services, retail and outsourced customer support. Revenue has historically been billed per agent seat per month, with usage-based telephony and, more recently, consumption-based AI charges layered on top.

The investment picture is unusual because the growth story and the value story point at the same asset. Revenue reached about $312 million in the second quarter of 2026, up roughly 10% year over year, with subscription revenue up about 14% and AI revenue up about 78%, and management raised full-year guidance to roughly $1.26 billion to $1.272 billion. At the same time the shares have de-rated hard, to roughly $2.2 billion of market capitalization and under about 2x enterprise value to revenue, because the market has priced in a scenario where conversational AI reduces the number of human agents that Five9's core pricing model depends on. Free cash flow of roughly $216 million over the trailing twelve months and a non-GAAP earnings outlook of about $3.22 to $3.30 per share mean the business funds itself and has been buying back stock, while GAAP earnings stay much thinner because of stock-based compensation.

The core risk is structural: if AI agents resolve a rising share of customer contacts, companies need fewer human agents, and Five9's per-seat pricing shrinks with them, so the AI products have to grow faster than the seat base declines. Competition is intense on both flanks, with NICE and Genesys at enterprise scale and hyperscaler and CRM-native offerings like Amazon Connect, Microsoft and Salesforce bundling contact center capability into stacks customers already buy. A newer wave of AI-native voice agent startups is attacking the automation layer directly, without any legacy seat revenue to protect. The company also carries roughly $650 million of 1.00% convertible senior notes due 2029, which is manageable against its cash and investments but constrains flexibility if growth slows. Finally, GAAP profitability remains modest relative to non-GAAP figures because of heavy stock-based compensation, so headline valuation multiples look very different depending on which earnings basis is used.

20 analysts publish price targets on FIVN, averaging $29.35 against a $33.99 price as of August 2026, or -13.7%. The published targets run from $20.00 to $47.00, a wide spread, and the ratings split 14 buy, 7 hold, 0 sell. Over the last six months there have been 11 raises and 0 cuts among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.

Read the full FIVN forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.

We give no verdict on Five9, Inc.. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. AI revenue outrunning seat pressure. AI revenue grew roughly 78% year over year in the second quarter of 2026 and is priced by consumption rather than by headcount. The most optimistic published target, $47.00, assumes this works close to its best case.

The case against. The core risk is structural: if AI agents resolve a rising share of customer contacts, companies need fewer human agents, and Five9's per-seat pricing shrinks with them, so the AI products have to grow faster than the seat base declines. The most pessimistic target, $20.00, is roughly what FIVN is worth if this bites instead.

Read the full bull and bear case on FIVN, including what would have to change to break either one. Walnut is not an investment adviser.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Five9, Inc.'s investor relations page or your broker.

• Revenue (TTM): ~$1.23 billion
• Q2 2026 revenue: ~$312 million, up ~10% year over year
• FY2026 revenue guidance: ~$1.26 billion to ~$1.272 billion
• FY2026 non-GAAP EPS guidance: ~$3.22 to ~$3.30
• Free cash flow (TTM): ~$216 million
• Market capitalization: ~$2.2 billion

At roughly $2.2 billion of market value against about $1.27 billion of guided 2026 revenue, Five9 trades under about 2x sales, a level far below where cloud software with low-teens growth and positive free cash flow normally sits. The gap between a trailing GAAP price-to-earnings ratio near 44x and roughly 9x the midpoint of non-GAAP earnings guidance is almost entirely stock-based compensation, so the two framings tell very different stories. Cash and marketable investments of roughly $724 million as of the first quarter partially offset about $650 million of convertible notes due 2029.

Other names that sit close to FIVN: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

There are three common ways to get FIVN exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic portfolio, so FIVN sits alongside other stocks that express the same thesis.

Walnut takes the portfolio route. Describe a thesis where FIVN fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

FIVN is a profitable, cash-generating contact center software business priced for the risk that AI erodes seat counts, which makes the AI revenue mix the single number worth tracking.

Whether FIVN is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is FIVN a buy or a sell?, and where the stock could go from here in the FIVN stock forecast.

For income investors, whether FIVN pays a dividend and how the payout looks is covered in does FIVN pay a dividend? And to weigh FIVN against a peer, read the full side-by-side comparisons: FIVN vs NICE and FIVN vs CX.