Five9 Acquires Level AI for $325 Million Amid Strong Earnings

Five9 Inc. announced the $325 million acquisition of Level AI after reporting third-quarter 2026 financial results that beat Wall Street expectations. The company reported revenue of $323.3 million and adjusted earnings of $0.82 per share, driven largely by its AI segment, which saw revenue accelerate 91% year-over-year to contribute $180 million to annual recurring revenue.

Market reactions to the acquisition have been mixed. DA Davidson lowered its price target for Five9 from $33.00 to $30.00, maintaining a Neutral rating. While the firm acknowledged the strategic rationale and potential for cross-selling, it expressed measured expectations regarding the return on investment given the purchase price.

Conversely, Needham reiterated a Buy rating on the stock, maintaining a higher price target of $40.00.