Can Enterprise AI Adoption Boost FIVN's Growth Trajectory in 2026?

Five9 FIVN is experiencing accelerating momentum in enterprise AI adoption as contact center platforms transition from agent-centric models to AI-orchestrated customer experiences. FIVN's platform embeds intelligence across core contact center operations, enabling enterprises to deploy AI agents alongside human agents within unified workflows. This integrated approach is resonating with enterprises seeking to modernize customer service operations without fragmenting technology stacks or disrupting existing processes.

As per Grand View Research, the broader enterprise AI market is projected to witness a CAGR of 37.6% from 2025 to 2030. Enterprises are migrating from on-premise contact centers to cloud-native architectures that enable AI deployment at scale while prioritizing automation to address labor constraints and rising operational costs. Five9's cloud-native platform positions it to capture this migration as enterprises seek solutions that orchestrate collaboration between AI agents handling routine inquiries and human agents managing complex scenarios.

FIVN's commercial traction reflects this accelerating demand, with AI bookings surging over 80% year over year in the third quarter. AI revenues represent 11% of enterprise subscription revenues after growing 41% year over year, suggesting adoption is advancing beyond pilot phases into production deployments. Five9's platform stores comprehensive conversation history across channels, enabling AI agents to maintain relationship context rather than treating each interaction as isolated. This data advantage is driving competitive wins, including instances where customers are replacing AI point solutions with the company's integrated platform to achieve deeper system integrations and unified visibility across AI and human agent interactions.

Strategic partnerships are amplifying AI-driven expansion, with ServiceNow-related bookings quadrupling year-to-date and Salesforce partnerships contributing to 60% booking growth. The Zacks Consensus Estimate for 2026 revenues is pegged at $1.26 billion, up 9.54% year over year. As installed base AI bookings convert to revenues throughout 2026, enterprise AI attach rates could become increasingly significant in sustaining growth momentum.

FIVN Faces Intense Competition

FIVN faces competition from NICE NICE and RingCentral RNG as AI adoption accelerates across contact centre platforms. NICE embeds analytics-driven AI throughout CXone, leveraging workforce optimization capabilities to deliver compliance-focused intelligence within NICE's quality management framework. RingCentral layers AI atop its unified communications base, extending collaboration tools into contact center automation through RingCentral Contact Center. FIVN differentiates through contextual continuity, maintaining relationship history across AI and human agent interactions rather than isolated automation. While NICE emphasizes analytics-centric operations and RingCentral extends unified communications, FIVN targets enterprises requiring end-to-end orchestration where conversation context persists across channels.

FIVN's Price Performance, Valuation & Estimates

Shares of Five9 have declined 24.9% in the past six months, underperforming the Zacks Internet - Software industry’s decline of 4.6% and the Zacks Computer and Technology sector’s return of 20.9%.

FIVN’s Price Performance

From a valuation standpoint, Five9 shares are trading at a forward 12-month price-to-earnings ratio of 16.37X, lower than the industry’s 33.3X. FIVN carries a Value Score of A.

FIVN’s Valuation

The Zacks Consensus Estimate for Five9’s 2026 EPS is pegged at $3.17, unchanged over the past 30 days. The earnings figure suggests 8.34% year-over-year growth.

Five9, Inc. Price and Consensus

Five9, Inc. price-consensus-chart | Five9, Inc. Quote

Five9 currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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