Why Five9 (FIVN) Stock Is Up Today

What Happened?

Shares of cloud contact center software provider Five9 (NASDAQ:FIVN) jumped 14.7% in the morning session after the company reported fourth-quarter 2025 financial results that surpassed Wall Street's expectations for both revenue and profit. 

The cloud contact center software provider posted revenue of $300.3 million, up 7.8% year on year, and adjusted earnings per share of $0.80, both beating analysts' estimates. The company's profitability also showed significant improvement, with adjusted operating income of $61.62 million handily beating consensus and its operating margin jumping to 6.6% from 1.5% in the same quarter last year. Furthermore, Five9 generated a strong free cash flow margin of 22.4%, a significant increase from the previous year. 

Looking ahead, the company's revenue guidance for the next quarter and its adjusted earnings forecast for the full year 2026 were both largely in line with analyst expectations.

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What Is The Market Telling Us

Five9’s shares are extremely volatile and have had 30 moves greater than 5% over the last year. But moves this big are rare even for Five9 and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 15 days ago when the stock dropped 6.8% on the news that the "AI replacement" narrative reached a fever pitch following the release of new models from Anthropic and OpenAI. 

The simultaneous debut of Anthropic's Claude Opus 4.6 and OpenAI's "Frontier" agent platform raised concerns that autonomous agents are no longer just tools, but new operating systems that can cannibalize traditional software. This suggests that specialized applications might be reduced to mere features within frontier models, rendering legacy seat-based licensing models increasingly obsolete. The catalyst is the models' unprecedented agentic power. Opus 4.6’s "software hunting" capability allows it to autonomously audit and patch complex codebases, while OpenAI's Frontier platform bypasses traditional CRM and ticketing interfaces to perform enterprise work directly. By commoditizing sophisticated workflows into low-cost API calls, these releases threaten the recurring revenue of software giants. As AI builds bespoke tools on demand, the market is aggressively repricing the entire software application layer.

Five9 is up 3.8% since the beginning of the year, but at $19.53 per share, it is still trading 53.6% below its 52-week high of $42.09 from February 2025. Investors who bought $1,000 worth of Five9’s shares 5 years ago would now be looking at an investment worth $117.11.

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