Five9 reported third quarter 2026 results that exceeded analyst estimates on both the top and bottom lines, driven by a significant step-up in AI-related revenue and accelerating subscription growth. Parallel to the results, the company announced a definitive agreement to acquire Level AI for $325 million in cash to deepen its technical talent and competitive position in the agentic contact center space.
Key Highlights
- Revenue rose 13% year-over-year to $323.3 million, outperforming the $318.35 million estimate.
- Subscription revenue reached $268.3 million, representing 83% of total revenue and 16% year-over-year growth.
- Non-GAAP diluted EPS of $0.82 beat expectations of $0.80, while GAAP net income landed at $14.5 million.
- LTM subscription dollar-based retention rate was 109%, indicating stable expansion within the existing customer base.
- Full-year 2026 guidance was updated to revenue between $1.269 billion and $1.275 billion, with non-GAAP EPS of $3.17 to $3.21.