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Five9 reported third-quarter revenue of about $323 million, a 13 percent increase from last year. Its core subscription business, which is the most predictable part of its income, grew even faster at 16 percent. The company earned $0.82 per share, slightly ahead of the $0.80 analysts expected.
These results support the idea that companies are still moving their customer service systems to the cloud. While overall profit margins tightened slightly compared to last year, the company stayed profitable on a GAAP basis, which includes all costs like stock-based pay. For long-term owners, the steady subscription growth suggests Five9 is successfully keeping its customers and adding new ones even as it shifts toward an AI-focused model.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Five9 entered an agreement on November 5 to acquire Level AI, a firm that builds artificial intelligence for contact centers, for $325 million in cash. The deal is expected to close by early February 2027.
This is a significant spend for a company of Five9's size. It shows management is doubling down on its strategy to move beyond just selling software seats for human agents and toward charging for AI-driven interactions. While the price is high, the technology is central to the company's goal of using bots to handle more customer service queries.
Source: 8-K filing
Gartner, a firm that researches and grades technology companies, named Five9 a leader in its 2026 report for contact center software. This is the ninth time the company has received this ranking. While these industry awards are common, this one matters because it helps Five9 win contracts with large corporations that use Gartner's rankings to vet their suppliers. It confirms that Five9 is maintaining its competitive standing against rivals as the industry shifts toward AI.
Source: Business Wire
Management has a perfect two-year streak of clearing their own profit targets. They consistently set a bar they know they can beat, which makes their forecasts highly reliable.