Why Smartsheet Stock Is Rising Again Today

Smartsheet (SMAR 6.71%) stocks post big gains in Friday trading. The productivity and collaboration software specialist’s stock price rose 5.8% as of 12:30 a.m. ET, according to data from S&P Global Market Intelligence.

Smartsheet stock is rising after the company posted better-than-expected results for the second quarter of its 2025 fiscal year (which ended July 31). Today’s bullish moment comes after yesterday’s big gains after it was reported that the company was on the verge of being acquired by a group of private equity firms.

Smartsheet smashed Wall Street’s Q2 earnings target

Smartsheet posted non-GAAP (generally accepted accounting principles) earnings per share of $0.44 in fiscal Q2, which came in well above the average analyst estimate for adjusted earnings of $0.29 per share. Meanwhile, revenue rose about 17% year-over-year to $276.4 million — beating Wall Street’s average target by $1.94 million. Annual recurring revenue rose 17% year-over-year to $1.093 billion, and the company posted free cash flow of $57.2 million — a new record for the business.

What’s next for Smartsheet?

For the third quarter, Smartsheet is recommending sales of $282 million to $285 million. That target range actually fell short of the average sales analyst request of $285.2 million in the period, but the company’s earnings guidance came in ahead of expectations. Management expects to report adjusted earnings of between $0.29 per share and $0.31 per share, beating the average Wall Street target call for earnings per share of $0.29.

For the full year, Smartsheet is targeting revenue between $1.116 billion and $1.121 billion. That guidance range once again fell short of the average analyst target, which had called for sales of $1.12 billion, but the earnings guidance also beat Wall Street expectations. Management is targeting adjusted earnings per share between $1.36 and $1.39, which is much better than the average analyst estimate for adjusted earnings per share of $1.26.

Smartsheet’s Q2 report and forward guidance were strong on their own, and the report supports the idea that the company is an attractive acquisition target. A group of investors including Vista and Blackstone It is reportedly in talks to acquire the business, and the software specialist’s recent report could help boost the purchase price.