Five9 Shares Fall 19.8% as Company Reports Third-Quarter Results and 2026 Outlook

Key Facts

Five9 shares fell 19.8%, according to StockStory coverage published on November 5, 2026, the day the company reported results for the third quarter ended September 30. The coverage said the company's quarterly revenue exceeded analysts' consensus by 1.3%. In its statement, Five9 said revenue rose 13% to $323.3 million, compared with $285.8 million in the same period a year earlier. The results combined growth in revenue and subscriptions with a decline in net income under generally accepted accounting principles. The company also set its 2026 revenue and earnings-per-share outlook.

Five9's GAAP net income was $14.5 million in the third quarter, or $0.19 per diluted share. In the same period a year earlier, net income was $18.0 million and diluted earnings per share were $0.21. On a non-GAAP basis, the company posted net income of $63.7 million, or $0.82 per diluted share. The comparable figures were $60.6 million in net income and $0.78 per diluted share. Adjusted earnings per share therefore rose year over year, while net income and earnings per share under GAAP declined.

Five9 said subscription revenue grew 16% year over year in the third quarter. For total revenue, the company reported annual growth of 13% to $323.3 million, while StockStory coverage said the figure exceeded analysts' consensus by 1.3%. The difference between subscription and total revenue growth offers a picture of the growth areas the company highlighted in its announcement. But income figures showed two different paths depending on the measurement: GAAP net income declined year over year, while net income and earnings per share on a non-GAAP basis rose. Five9 announced the results on November 5 for the quarter ended September 30, 2026.

The company set fiscal 2026 revenue in a range of $1.269 billion to $1.275 billion. It also put non-GAAP diluted earnings per share at $3.17 to $3.21. For the fourth quarter, it forecast revenue of $328 million to $334 million and diluted earnings per share on the same basis of $0.88 to $0.92. Five9 said its 2026 financial guidance does not include any contribution from its pending acquisition of Level AI. The company announced a definitive agreement to acquire Level AI on November 5 in an all-cash deal valued at about $325 million, funded from its balance sheet.

Five9 said the Level AI deal is expected to close in the fourth quarter of 2026, subject to closing conditions. In announcing the deal, the company said Level AI's applications would support agent performance and automate more customer interactions across voice and digital channels. Chief Executive Amit Mathradas said Level AI would expand Five9's artificial intelligence capabilities and add a team of developers specializing in the field. The company said the new solutions include search, analysis and planning, enabling human agents to focus on complex, high-value interactions. Before the results announcement the following day, Five9 shares closed at $36.35 on November 4.