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Five9 Shares Surge After Earnings Exceed Analyst Expectations

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Ellis Hobbs Fact-checked by Matt Monaco
Updated 2/22/2026, 11:14 am ET 2/22/2026, 11:14 am ET | 6 min 6 min read
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Five9 Inc.’s stocks have been trading up by 12.98 percent as strategic partnerships fuel investor optimism.

Technology industry expert:

Analyst sentiment – positive

Five9 (FIVN) is maintaining a stable market position given the current economic conditions. The company reported notably high gross margins at 55.1%, reflecting strong pricing power and operational efficiency in its business model, which is aligned with its $1.15 billion revenue for 2025. However, the firm is facing challenges with sluggish overall profit margins at 3.43%, indicating potential pressure on cost management or revenue-per-unit. Current valuation metrics, including a P/E ratio of 49.54, suggest that Five9 is trading at a premium relative to its industry peers, though it justifies the high valuation with its robust forward momentum in AI revenue and subscription growth — both key drivers in the technology sector. Liquidity is strong with a current ratio of 4.5, indicating ample capacity to meet short-term obligations and invest in growth initiatives, underscoring financial health.

In terms of technical analysis, Five9’s recent price trajectory has been bullish with increasing volume, as demonstrated by a surge from $16.29 to $19.41 within the observed period, signifying positive investor sentiment post-earnings. The dominant trend is upward, supported by a breakout above $18, accompanied by robust trading volumes, confirming bullish momentum. With a five-minute candle indicating near-term buying pressure, aggressive traders could capitalize on long positions, setting support at $18.50 — a key level where buyers emerged — with targets at $20. Manage risk by placing stop losses slightly below the $18 support to safeguard against volatility.

Recently reported news emphasizes Five9’s growth with an impressive 2025 performance, including a 10% year-over-year revenue increase and standout growth in its enterprise AI segment. This positions Five9 significantly against the broader Technology and Software & IT Services benchmarks, which have seen slower transitions towards AI-centric models. Despite some analysts lowering price targets due primarily to sector-wide valuation adjustments, the company has guided above-consensus for FY26, with targets in the $1.247B-$1.261B revenue range. The strategic move under new CEO leadership towards enhancing AI capabilities greatly boosts long-term prospects, supported by strong first-quarter guidance. Currently trading around $18.66 with upcoming support near $19 and resistance at $25, Five9 remains a compelling investment, with continued innovation expected to drive substantial growth trajectory.

Candlestick Chart

Weekly Update Feb 16 – Feb 20, 2026: On Sunday, February 22, 2026 Five9 Inc. stock [NASDAQ: FIVN] is trending up by 12.98%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Five9 posted solid financial results, marking a notable upward trend in performance indicators. The company announced a record revenue achievement of $1.15B in 2025, a 10% increase from the previous year. Not only did they surpass quarterly revenue and earnings expectations, but they also set the stage for future financial strength by projecting revenues of approximately $1.25B for the upcoming fiscal year. These encouraging figures were bolstered by a commendable 12% rise in subscription revenue and a remarkable 50% surge in Enterprise AI revenue, showcasing Five9’s strategic shift towards technology-driven solutions.

An analysis of key financials reveals a robust EBITDA margin of 14.3% and a gross margin towering at 55.1%. These reflect Five9’s adept management of operational costs and its ability to maintain profitability even in an evolving market landscape. The financial health is further evidenced by their quick ratio of 3.9, illustrating liquidity strength, and a favorable current ratio of 4.5, indicating effective management of short-term liabilities. The enterprise value stands at $1.58B, and a price-to-sales ratio of 1.31 signifies potential for growth beyond current market levels.

More Breaking News

December’s stock data showed a closing price elevation to $19.41, reflecting market validation of these financial strides. Moreover, the reported free cash flow generation, amounting to $67.31M, provides the company with substantial leeway to explore new opportunities, possibly in emerging markets or product innovations.

Conclusion

In summary, Five9 has substantially strengthened its market position by executing on growth strategies that align with evolving technological demands. The latest financial results underpin the company’s robust performance metrics, echoing its commitment to solidifying a competitive edge in the customer experience space powered by AI. As analysts maintain a positive outlook, Five9 is strategically poised to navigate future challenges while capitalizing on its well-articulated plan for growth and profitability. In an environment where trading strategies are crucial, as millionaire penny stock trader and teacher Tim Sykes says, “Consistency is key in trading; don’t let emotions dictate your trades.” The strategic maneuvers by its new leadership signal an anticipatory and adaptive approach, expected to yield sustained shareholder value and capitalize on emerging technological advancements.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”