Five9 raises outlook after strong Q2

Five9 reported better-than-expected second quarter results and said its Google Cloud partnership and AI Voice Agents are gaining traction. Five9 also raised its outlook for the third quarter and 2026.

The company reported second quarter net income of $3.4 million, or 4 cents a share, on revenue of $312.4 million, up 10% from a year ago. Non-GAAP earnings in the second quarter were 70 cents a share.

Wall Street was looking for second quarter earnings of 68 cents a share on revenue of $306.58 million.

During the quarter, Five9 said it closed a nine-figure deal worth about $100 million in total contract value via its partnership with Google Cloud. Five9 is available for on the Google Cloud Marketplace.

Amit Mathradas, Five9's CEO, said the quarter was its third consecutive of accelerating subscription revenue growth with AI revenue growing faster. Mathradas has built out his management team since joining it six months ago. "We have the right team and strategy to extend this momentum," he said.

As for the outlook, Five9 projected third quarter revenue between $316 million and $322 million with net income between 9 cents a share and 16 cents a share. Non-GAAP third quarter earnings will be between 77 cents a share and 81 cents a share.

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For 2026, Five9 projected earnings of 71 cents a share to 82 cents a share on a GAAP basis and non-GAAP earnings of $3.22 a share to $3.30 a share. Revenue for 2026 will be between $1.26 billion and $1.272 billion.

Constellation Insights caught up with Mathradas to talk shop. Here are the takeaways.

AI is expanding the contact center not killing it. AI improves unit economics so companies can talk to more customers, especially tier‑2 and tier‑3 segments, rather than shrinking human interaction, said Mathradas.

"Most customers of ours if given a choice would use those saved economics from AI to actually go engage with the tier-2 and tier-3 customers that they've never been able to engage with before," he said. "Interactions will actually go up, not down."

The total CCaaS (contact center as a service) business with AI will see an expanding total addressable market. Mathradas said customers are connecting their contact center and AI strategies.

"In the future, it is going to voice, digital, AI, and agentic orchestration driving outcomes," said Mathradas. "It is really driving the next set of data, which is empathetic data, real-time voice data, real-time interaction data."

Pricing strategies. Five9 is leaning into a minimum-commit hybrid pricing model that keeps elements of per seat pricing and then let's customers flex into AI within a committed spend. "We have moved to a minimum commit model. CCaaS was traditionally price per seat and customers liked it because it was predictable. Now there's a minimum commit where you step up and if your human seats get compressed you can apply it to AI," said Mathradas.

Five9 wants to be a neutral interaction layer across systems of record and clouds. "An interaction layer has to be a neutral third party that sits in the middle that connects across systems of record. That is really where the power, the next level of power, gets unlocked," said Mathradas.

He added that Five9 has ownership of the contact center routing and AI, which gives it a structural edge to route to the best human or AI.

A multi-model strategy. Mathradas said Five9 is architecting for a multi-model future where customers can bring their own AI. "A customer will really determine what their standard is. You'll see a lot of companies moving in that direction," he said.