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    The Bull Case For Five9 (FIVN) Could Change Following Q3 Earnings Beat And New Buyback - Learn Why

    Simply Wall St·12/08/2025 11:12:13
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    • Five9 recently reported third-quarter 2025 results that exceeded expectations, with earnings per share of US$0.78 on revenue of US$286.00 million, and launched a US$50.00 million accelerated share repurchase program with JPMorgan Chase Bank initially covering about 1.90 million shares.
    • While senior executives executed pre-arranged and tax-related stock sales around these announcements, the combination of outperformance and buybacks highlights management’s confidence in Five9’s financial position and long-term plan.
    • With Five9’s strong third-quarter earnings and new accelerated share repurchase program, we’ll now examine how this affects its investment narrative.

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    Five9 Investment Narrative Recap

    To own Five9, you need to believe in its transition from a traditional contact center provider to an AI-first customer experience platform, with durable demand for its cloud and automation tools. The latest earnings beat and new buyback do not materially change the near term catalyst, which still centers on monetizing its expanding AI suite, nor the key risk, which remains intense competition from larger vendors that can outspend Five9 on product and sales.

    The US$50.00 million accelerated share repurchase program is the announcement most relevant here, because it directly affects how much of Five9’s future AI and CX growth accrues to each remaining share. While it does not remove the competitive or execution risks around AI adoption, it can amplify the impact of any future progress on margins and earnings per share if Five9 continues to convert AI bookings into recurring revenue as planned.

    Yet investors should keep in mind that growing AI adoption also sharpens the risk that core offerings become commoditized, which is something shareholders need to be aware of as...

    Read the full narrative on Five9 (it's free!)

    Five9's narrative projects $1.4 billion revenue and $98.5 million earnings by 2028. This requires 9.3% yearly revenue growth and an earnings increase of about $89.7 million from $8.8 million today.

    Uncover how Five9's forecasts yield a $34.05 fair value, a 65% upside to its current price.

    Exploring Other Perspectives

    FIVN Community Fair Values as at Dec 2025
    FIVN Community Fair Values as at Dec 2025

    Eleven members of the Simply Wall St Community currently see Five9’s fair value between US$34.05 and US$67.62, reflecting a wide spectrum of expectations. Set against this, the competitive risk from larger, well capitalized vendors could be a key factor in how those different views on Five9’s future performance eventually play out.

    Explore 11 other fair value estimates on Five9 - why the stock might be worth over 3x more than the current price!

    Build Your Own Five9 Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.