HubSpot (NYSE:HUBS) Announces Earnings Results

HubSpot (NYSE:HUBS) issued its earnings results on Wednesday. The software maker reported $3.26 earnings per share for the quarter, topping the consensus estimate of $3.02 by $0.24, FiscalAI reports. The business had revenue of $911.74 million during the quarter, compared to analysts’ expectations of $898.31 million. HubSpot had a return on equity of 5.66% and a net margin of 3.04%.The business’s revenue for the quarter was up 19.8% compared to the same quarter last year. During the same period in the prior year, the business earned $2.19 EPS. HubSpot updated its FY 2026 guidance to 13.230-13.310 EPS and its Q3 2026 guidance to 3.250-3.270 EPS.

Here are the key takeaways from HubSpot’s conference call:

• Positive Sentiment: HubSpot reported Q2 revenue growth of 17.5% in constant currency, 20.3% non-GAAP operating margin, 18% free-cash-flow margin, and 14% year-over-year customer growth to more than 306,000 accounts.
• Positive Sentiment: AI adoption indicators strengthened, with more than 55% of Pro Plus customers using agents or Breeze Assistant, monthly agentic actions up more than 3x year to date, and credit consumption increasing despite lower pricing. The company also cited strong up-market demand, including 38% growth in deals above $120,000 ARR.
• Negative Sentiment: Customer additions fell short of expectations at 7,000 versus the anticipated 9,000–10,000, while budget scrutiny, larger buying committees, longer sales cycles, and downgrade pressure reduced net revenue retention to 102%.
• Negative Sentiment: HubSpot expects the Q2 headwinds to persist through the rest of 2026, lowering expected quarterly net additions to approximately 5,000–6,000, forecasting roughly flat full-year net revenue retention, and projecting 2026 constant-currency revenue growth of 16%.
• Positive Sentiment: The board authorized an additional $1 billion share-repurchase program after the company bought back more than $500 million during Q2. Management also expects 2–3 points of incremental non-GAAP operating-margin expansion in 2027 while continuing to invest in AI.

HubSpot Stock Performance

Shares of HUBS traded down $47.97 during trading hours on Thursday, hitting $202.25. The stock had a trading volume of 8,540,938 shares, compared to its average volume of 1,817,650. The firm has a 50-day moving average price of $206.87 and a 200 day moving average price of $230.28. HubSpot has a fifty-two week low of $169.63 and a fifty-two week high of $525.51. The firm has a market capitalization of $10.36 billion, a price-to-earnings ratio of 105.89, a PEG ratio of 2.72 and a beta of 1.19.

Analysts Set New Price Targets

Several brokerages have recently weighed in on HUBS. Bank of America reaffirmed an “underperform” rating and issued a $200.00 price target on shares of HubSpot in a research report on Thursday. UBS Group set a $287.00 target price on HubSpot in a report on Thursday. Capital One Financial set a $206.00 price target on HubSpot and gave the company an “equal weight” rating in a report on Thursday. Weiss Ratings restated a “sell (d)” rating on shares of HubSpot in a research note on Wednesday, June 24th. Finally, JPMorgan Chase & Co. cut their target price on HubSpot from $530.00 to $425.00 and set an “overweight” rating on the stock in a research note on Friday, May 8th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, thirteen have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, HubSpot presently has a consensus rating of “Moderate Buy” and an average price target of $282.23.

Insider Activity

In other news, CTO Dharmesh Shah acquired 10,000 shares of the business’s stock in a transaction on Tuesday, May 12th. The stock was bought at an average price of $181.37 per share, with a total value of $1,813,700.00. Following the completion of the acquisition, the chief technology officer owned 1,295,400 shares of the company’s stock, valued at approximately $234,946,698. This represents a 0.78% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Brian Halligan sold 8,500 shares of the firm’s stock in a transaction dated Tuesday, July 21st. The shares were sold at an average price of $221.09, for a total value of $1,879,265.00. Following the sale, the director owned 85,000 shares in the company, valued at $18,792,650. This trade represents a 9.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders purchased 14,063 shares of company stock worth $2,585,781 and sold 25,500 shares worth $5,316,835. Corporate insiders own 3.70% of the company’s stock.

Hedge Funds Weigh In On HubSpot

Large investors have recently added to or reduced their stakes in the stock. Invesco Ltd. raised its position in shares of HubSpot by 128.7% during the 4th quarter. Invesco Ltd. now owns 296,856 shares of the software maker’s stock worth $119,129,000 after purchasing an additional 167,076 shares during the last quarter. Corient Private Wealth LLC raised its holdings in shares of HubSpot by 40.2% during the fourth quarter. Corient Private Wealth LLC now owns 2,954 shares of the software maker’s stock valued at $1,186,000 after acquiring an additional 847 shares during the last quarter. Alberta Investment Management Corp purchased a new position in shares of HubSpot in the fourth quarter valued at approximately $1,124,000. Mercer Global Advisors Inc. ADV boosted its stake in shares of HubSpot by 47.3% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 8,407 shares of the software maker’s stock worth $3,374,000 after acquiring an additional 2,698 shares during the last quarter. Finally, Vident Advisory LLC increased its position in shares of HubSpot by 13.3% during the fourth quarter. Vident Advisory LLC now owns 12,398 shares of the software maker’s stock worth $4,975,000 after purchasing an additional 1,458 shares in the last quarter. 90.39% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting HubSpot

Here are the key news stories impacting HubSpot this week:

• Positive Sentiment: HubSpot reported second-quarter revenue of $911.7 million, up approximately 20% year over year, while adjusted EPS of $3.26 exceeded the $3.02 analyst consensus. Customer gains, subscription growth and demand for AI-powered CRM tools supported the results. HubSpot Reports Q2 2026 Results
• Positive Sentiment: Management raised confidence in profitability, issuing full-year 2026 EPS guidance of $13.23-$13.31, above the $11.37 consensus, and projecting 2% to 3% non-GAAP operating-margin expansion in 2027. HubSpot Margin Expansion Outlook
• Neutral Sentiment: HubSpot is expanding AI product trials and lowering entry prices to accelerate adoption. The strategy could broaden its addressable market, but management acknowledged that customers are taking longer to approve purchases and scrutinizing budgets more closely. Q2 Earnings Call Highlights
• Negative Sentiment: Third-quarter revenue guidance of $924 million-$925 million fell well below the $941.2 million consensus, signaling a slower near-term growth outlook despite EPS guidance above estimates. This cautious outlook was the primary catalyst for the selloff. HubSpot Guidance Reaction
• Negative Sentiment: Analysts cut price targets following the results: Stifel reduced its target to $200 from $275, while BTIG lowered its target to $250 from $300. Although BTIG retained a buy rating and KeyCorp maintained an overweight rating, the reductions reflect greater concern about growth and valuation.
• Negative Sentiment: Block & Leviton announced an investigation into possible securities-law violations after the sharp decline. The announcement is an investor solicitation and does not establish wrongdoing, but it adds reputational and legal uncertainty. HubSpot Investigation

About HubSpot

HubSpot, Inc is a software company that develops a cloud-based customer relationship management (CRM) platform designed to help organizations attract, engage and delight customers. Its primary business activities center on providing integrated marketing, sales and customer service tools that support inbound marketing strategies, content management, lead nurturing, sales automation and customer support workflows.

The company’s product suite is organized around modular “hubs” built on a central CRM: Marketing Hub, Sales Hub, Service Hub, CMS Hub and Operations Hub.