Shares of HubSpot (HUBS +6.92%) charged sharply higher on Thursday, surging as much as 7%. As of 2:44 p.m. ET, the stock was still up 6.1%.
The catalyst that sent the cloud-based customer relationship management (CRM) specialist higher was chatter about recent mergers and acquisitions and what it could mean for the future.
Image source: Getty Images.
It only takes a sparkA wave of recent acquisitions in the software space has Wall Street analysts speculating about the future, and HubSpot came up in the conversation.
Earlier this week, Salesforce announced its intention to acquire Braze, a leading customer engagement platform, in a deal valued at $5.66 billion, representing a 58% premium over the prior day's closing price. This marked the third such major acquisition of a small- to mid-cap software company in recent weeks.
Just last week, cloud software and artificial intelligence (AI) company CCC Intelligent Solutions agreed to be taken private by a group of private investment firms including GTCR and Elliot Investment Management for $6.1 billion, marking a 44% premium. On the same day, cybersecurity provider Varonis Systems agreed to be acquired by privately held competitor Proofpoint for $6.3 billion, a 52% premium to the stock price prior to the rumored sale.
HUBS HubSpot$267.19+$17.29 (+6.92%)
NYSE · As of 4:00 PM ET 10/22/26
In the wake of this tidal wave of merger mania, Jefferies analyst Samad Samana has surveyed the landscape and believes there are more deals to come. He posits that the Braze buyout could be the "the spark that could lead to a strategic takeout" of rival Klaviyo. The analyst goes on to suggest that while he views an acquisition of HubSpot as unlikely, the company could be an attractive candidate for private equity.
Acquiring HubSpot would be a more costly affair, as the company has a market cap of more than $13 billion (as of this writing) -- and that doesn't include any premium shareholders would require to approve such a deal. Assuming the average premium of 51% for the above-cited deals, any acquisition of HubSpot would be in the neighborhood of $20 billion.
Like many software-as-a-service (SaaS) stocks, HubSpot has been punished in recent years as investors feared competition from AI, though the reality has proven to be more complicated. However, with the stock price near a five-year low, HubSpot could be an attractive acquisition for a company with deep pockets.
That said, this is all speculation. Nothing to see here. Move it along, folks.
Danny Vena, CPA has positions in HubSpot. The Motley Fool has positions in and recommends Braze, HubSpot, Salesforce, and Varonis Systems. The Motley Fool has a disclosure policy.
HubSpot, Inc. (HUBS - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, HUBS's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."
Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.
Golden crosses have three key stages that investors look out for. It starts with a downtrend in a stock's price that eventually bottoms out, followed by the stock's shorter moving average crossing over its longer moving average and triggering a trend reversal. The final stage is when a stock continues the upward climb to higher prices.
A golden cross contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.
HUBS has rallied 10.6% over the past four weeks, and the company is a #2 (Buy) on the Zacks Rank at the moment. This combination indicates HUBS could be poised for a breakout.
The bullish case only gets stronger once investors take into account HUBS's positive earnings outlook for the current quarter. There have been 2 upward revisions compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
Given this move in earnings estimates and the positive technical factor, investors may want to keep their eye on HUBS for more gains in the near future.
CAMBRIDGE, Mass.--(BUSINESS WIRE)--HubSpot, Inc., the agentic customer platform for scaling businesses, announced today that it will report its third quarter 2026 financial results after the U.S. financial markets close on Wednesday, November 4, 2026. In conjunction with this report, HubSpot will host a conference call at 4:30 p.m. Eastern Time (ET) on the same day to discuss the company's third quarter 2026 financial results and its business operations and outlook. A live webcast and replay of.
HubSpot Inc. (NYSE:HUBS) shares are in the spotlight Tuesday, with its October layoffs, September partnership expansion with OpenAI and upcoming earnings all drawing attention.
HubSpot stock is charging ahead with explosive momentum. Why is HUBS stock surging? HubSpot Cut About 660 Jobs, or 7% of Its Workforce, in Oct. 6 RestructuringCEO Yamini Rangan told employees Oct. 6 that HubSpot is eliminating nearly 660 roles under a plan its board authorized Oct. 1. The company will organize product teams around customer outcomes instead of its Hubs and will reduce management layers. HubSpot expects restructuring charges of $65 million to $75 million, mostly in the fourth quarter. Rangan said the cuts were not driven by AI-related efficiencies. HubSpot reaffirmed its third-quarter and full-year guidance and said it remains confident in the long-term operating margin targets it shared at its Sept. 17 Analyst Day.
HubSpot, OpenAI Expand Partnership with ChatGPT Ads Integration, AI Growth BundleOn Sept. 16, HubSpot announced an expanded partnership with OpenAI that updates its CRM connector for ChatGPT, adds the first CRM integration with ChatGPT Ads and launches an AI Growth Bundle for small and midsize businesses. HubSpot said weekly active users of the connector have grown 250% since the 2025 launch, and that customers can now run email campaigns, build landing pages, analyze closed-won deals and optimize for AI search from within ChatGPT. The ChatGPT Ads integration lets customers build, manage and measure campaigns inside HubSpot and trace closed deals back to the ads that started them. The bundle offers HubSpot Starter and credits at up to 65% off for one year, plus buy-one-get-one-free ChatGPT Business seats.
"We’re giving every scaling business a real shot at showing up where buyers are," said Duncan Lennox, HubSpot’s chief product and technology officer.
HubSpot To Report Third-Quarter Results Nov. 11HubSpot is expected to report after the market closes Nov. 11. Analysts estimate adjusted earnings per share of $3.27 on revenue of $924.57 million. HubSpot has guided to adjusted earnings per share of $3.25 to $3.27 and revenue of $924.0 million to $925.0 million, up 14% from a year earlier. In the second quarter, HubSpot reported adjusted earnings per share of $3.26, beating the consensus estimate of $3.02, and revenue of $911.70 million, beating the consensus estimate of $898.32 million.
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HubSpot Shares Edge HigherHUBS Price Action: At the time of publication, HubSpot shares are trading 5.82% higher at $248.28, according to data from Benzinga Pro.
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From a technical perspective, HubSpot (HUBS - Free Report) is looking like an interesting pick, as it just reached a key level of support. HUBS recently overtook the 200-day moving average, and this suggests a long-term bullish trend.
The 200-day simple moving average is widely-used by traders and analysts, and helps establish market trends for stocks, commodities, indexes, and other financial instruments over the long term. The indicator moves higher or lower together with longer-term price moves, serving as a support or resistance level.
HUBS has rallied 9.7% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests HUBS could be on the verge of another move higher.
Once investors consider HUBS's positive earnings estimate revisions, the bullish case only solidifies. No estimate has gone lower in the past two months for the current fiscal year, compared to 2 higher, and the consensus estimate has increased as well.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on HUBS for more gains in the near future.
HubSpot fundamentals are improving, with 20% revenue growth and strong cash flow, despite a 50% share price decline. HUBS is aggressively integrating AI into its platform, with increasing customer adoption of agentic AI tools and potential for future premium monetization. Management guides for slower 14% revenue growth due to AI trial changes and cautious demand but expects profitability improvements to offset top-line deceleration.
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What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
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Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.86% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: HubSpot (HUBS - Free Report) Headquartered in Cambridge, MA, HubSpot provides inbound marketing and sales applications over the cloud. The software-as-a-service vendor helps businesses attract customers through search engine optimization, social media, blogging, website content management, marketing automation, email, CRM, analytics and reporting.
HUBS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Computer and Technology stock. HUBS has a Momentum Style Score of A, and shares are up 3.7% over the past four weeks.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.40 to $13.33 per share. HUBS also boasts an average earnings surprise of +6.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, HUBS should be on investors' short list.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.86% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: HubSpot (HUBS - Free Report) Headquartered in Cambridge, MA, HubSpot provides inbound marketing and sales applications over the cloud. The software-as-a-service vendor helps businesses attract customers through search engine optimization, social media, blogging, website content management, marketing automation, email, CRM, analytics and reporting.
HUBS is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. HUBS has a Growth Style Score of A, forecasting year-over-year earnings growth of 37.4% for the current fiscal year.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.40 to $13.33 per share. HUBS also boasts an average earnings surprise of +6.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, HUBS should be on investors' short list.
HubSpot announced on Tuesday that it is cutting 7% of its workforce—roughly 660 employees—as it reorganizes around what it calls AI-driven customer outcomes.
The layoffs come as investors have spent months questioning whether AI will reduce the need for businesses to pay for software like HubSpot’s, a fear dubbed the “SaaSpocalypse.”
HubSpot’s platform helps companies manage their customers, sales, and marketing. The company was removed from the FTSE All-World Index (USD) last month after a decline in its stock price, a report from Simply Wall St noted. The stock is down more than 43% this year as of this writing.
After news of the layoffs was announced Tuesday, premarket shares of HubSpot Inc. (NYSE: HUBS) rose over 1%, but they were down again by 1.57% as of midday trading.
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Building a “flatter organization”Yamini Rangan, CEO of HubSpot, explicitly told employees in a memo that the layoffs were “not driven by AI-related efficiencies.” Rather, the aim was to focus on “aligning our organization with our strategy and how we need to operate going forward,” Rangan wrote.
She added that the goal is to “build a flatter organization with fewer layers” by cutting back on management.
Still, artificial intelligence has been central to the company’s concerns. In August, Rangan blamed AI for why the company “got off to a slow start” in April as HubSpot was trying to adjust its product and pricing.
HubSpot (NYSE:HUBS) is reducing its workforce by about 7%, or roughly 660 employees, while reaffirming its third-quarter and full-year 2026 guidance.
HubSpot disclosed the restructuring in an 8-K filing on Tuesday, expecting $65 million to $75 million in related charges, mostly in the fourth quarter of 2026, with role eliminations finishing by the end of the first quarter of 2027 and all payments made by the end of the second quarter of 2027.
Jefferies analysts estimate the move will lower operating expenses by about $126 million on an annualized basis. The estimate assumes the affected employees earned about $191,000 each, the median total compensation for fiscal 2025 disclosed in the company's proxy filing. The firm's estimate for HubSpot's fiscal 2027 operating expenses is about $2.6 billion.
Jefferies said the company will not see the full benefit until the end of the first quarter of 2027, and it expects about $110 million in realized savings next year.
The analysts described the decision as a necessary one given the slowdown in growth and the need to reposition the business for its next phase.
Jefferies noted it remains unclear whether the restructuring was already built into HubSpot's previously issued long-term margin targets or could become a source of incremental upside.
For the third quarter of 2026, HubSpot reaffirmed total revenue of $924 million to $925 million, non-GAAP operating income of $187 million to $188 million, representing a 20% margin, and non-GAAP earnings per share of $3.25 to $3.27.
For fiscal 2026, the company reaffirmed total revenue of $3.678 billion to $3.686 billion, non-GAAP operating income of $762 million to $766 million, representing a 21% margin, and non-GAAP earnings per share of $13.23 to $13.31.
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HubSpot (NYSE:HUBS – Get Free Report) issued an update on its third quarter 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 3.250-3.270 for the period, compared to the consensus EPS estimate of 2.800. The company issued revenue guidance of $924.0 million-$925.0 million, compared to the consensus revenue estimate of $925.2 million.
Wall Street Analyst Weigh In HUBS has been the topic of several recent analyst reports. FBN Securities initiated coverage on shares of HubSpot in a research note on Wednesday, September 23rd. They set a “sector perform” rating and a $230.00 price objective on the stock. Wolfe Research downgraded shares of HubSpot from an “outperform” rating to a “peer perform” rating in a research note on Thursday, August 6th. Needham & Company LLC reiterated a “buy” rating and set a $300.00 price target on shares of HubSpot in a report on Friday, September 18th. Canaccord Genuity Group lowered their price target on HubSpot from $335.00 to $300.00 and set a “buy” rating on the stock in a research report on Thursday, August 6th. Finally, Sanford C. Bernstein lowered HubSpot from an “outperform” rating to a “market perform” rating and dropped their price objective for the company from $381.00 to $220.00 in a research note on Thursday, August 6th. Fourteen research analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $270.61.
Read Our Latest Stock Analysis on HubSpot
HubSpot Price Performance NYSE:HUBS opened at $219.89 on Tuesday. The company has a market capitalization of $10.96 billion, a price-to-earnings ratio of 77.83, a PEG ratio of 2.25 and a beta of 1.24. The business has a 50 day moving average of $231.59 and a 200 day moving average of $219.04. HubSpot has a 1-year low of $169.63 and a 1-year high of $497.96. HubSpot (NYSE:HUBS – Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The software maker reported $3.26 EPS for the quarter, topping the consensus estimate of $3.02 by $0.24. The firm had revenue of $911.74 million for the quarter, compared to the consensus estimate of $898.31 million. HubSpot had a net margin of 4.26% and a return on equity of 8.66%. The business’s revenue was up 19.8% compared to the same quarter last year. During the same period last year, the firm posted $2.19 earnings per share. HubSpot has set its FY 2026 guidance at 13.230-13.310 EPS and its Q3 2026 guidance at 3.250-3.270 EPS. As a group, sell-side analysts anticipate that HubSpot will post 4.56 EPS for the current year.
Insider Activity at HubSpot In other HubSpot news, insider Erika Fisher sold 702 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $235.22, for a total value of $165,124.44. Following the completion of the transaction, the insider owned 14,581 shares in the company, valued at approximately $3,429,742.82. This represents a 4.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Gerald Dischler purchased 925 shares of the company’s stock in a transaction dated Monday, August 10th. The stock was bought at an average cost of $215.93 per share, for a total transaction of $199,735.25. Following the completion of the transaction, the director owned 1,940 shares in the company, valued at approximately $418,904.20. This represents a 91.13% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders sold a total of 26,202 shares of company stock worth $5,998,079 over the last quarter. 3.70% of the stock is owned by corporate insiders.
About HubSpot (Get Free Report)
HubSpot, Inc develops customer relationship management (CRM) software and related tools designed to help businesses attract, engage and retain customers. Its cloud-based platform brings together marketing, sales, customer service, content management, operations and commerce capabilities, allowing organizations to manage customer interactions across the business.
The company’s products include tools for marketing automation, email marketing, lead generation, sales pipeline management, customer support, website and content management, analytics, payments and business operations.
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Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
Raymond James analyst Brian Peterson downgraded HubSpot Inc (NYSE:HUBS) from Outperform to Market Perform. HubSpot closed at $214.53 on Friday. See how other analysts view this stock. Morgan Stanley analyst Daniela Haigian downgraded Group 1 Automotive Inc (NYSE:GPI) from Equal-Weight to Underweight and slashed the price target from $300 to $232. Group 1 Automotive shares closed at $249.84 on Friday. See how other analysts view this stock. Evercore ISI Group analyst Elizabeth Anderson downgraded Align Technology Inc (NASDAQ:ALGN) from Outperform to In-Line and cut the price target from $220 to $155. Align Technology closed at $143.74 on Friday. See how other analysts view this stock. Morgan Stanley analyst Daniela Haigian downgraded AutoNation Inc (NYSE:AN) from Overweight to Equal-Weight and slashed the price target from $250 to $175. AutoNation shares closed at $162.46 on Friday. See how other analysts view this stock. Citizens analyst Aaron Hecht downgraded Millrose Properties Inc (NYSE:MRP) from Market Outperform to Market Perform. Millrose Properties closed at $24.61 on Friday. See how other analysts view this stock. Considering buying HUBS stock? Here’s what analysts think:
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Work management software stocks are bouncing together after a bruising stretch, but a fresh analyst downgrade and a sector-wide rally that could reverse just as fast complicate the story for investors deciding whether to jump back in.
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A rebound in work management software is gathering pace, with Atlassian (NASDAQ:TEAM | TEAM Price Prediction) out in front and two of its closest rivals moving in the same direction. Shares of Atlassian trade at $189.18 this afternoon, up 6%.
Also gaining ground, HubSpot (NYSE:HUBS) stock is at $213.84, up 4%, following Atlassian higher. Monday.com (NASDAQ:MNDY) shares are at $81.82, also up 4%, even with a fresh analyst downgrade still in place.
The iShares Expanded Tech-Software Sector ETF (CBOE:IGV) is up 0.8% to $107.36, a sign that buyers are returning to software as a group. Moreover, the Invesco QQQ Trust (NASDAQ:QQQ) is up 0.47% to $743.26, so large-cap technology is rallying along with the software segment.
Three Work Management Names Rise Together With no company announcement attached, the advance in Atlassian stock leaves the behavior of its peers as the clearest read on the move. HubSpot and Monday.com shares are climbing alongside Atlassian stock, and all three names have fallen over the past month. A shared slide followed by a shared rebound marks this as a bounce in beaten-down names, with buyers returning to the group at once.
Earlier in September, Atlassian rolled out Jira and DX platform capabilities. These let engineering teams hand routine coding work to artificial intelligence (AI) agents while tracking what they touch and whether their output meets internal standards.
Taroon Mandhana, Atlassian’s chief technology officer of AI and teamwork, stated that organizational context is the biggest bottleneck in AI software engineering. That context, already stored inside customers’ Jira and Confluence, is the main reason investors favor Atlassian, and rivals can’t copy it quickly.
What the Downgrade Argued on Monday.com The catch in this bounce traces to a research note published on Tuesday by JPMorgan Chase. That note cut Monday.com stock to Neutral from Overweight, arguing that the company is struggling to attract new customers. Analyst Samik Chatterjee set a price target of $87 and asserted that a decline in new annual recurring revenue shows the difficulty of sustaining previously strong growth.
Chatterjee pointed to Monday.com’s net dollar retention, which measures spending changes among existing customers, slipping to 109% in the second quarter of 2026, and noted longer sales cycles among small and mid-sized business customers. The bank wants a clear change in down-market momentum before turning more positive.
Monday.com shares are rising while the downgrade still stands, which fits sector-wide shifting and leaves its customer-growth questions open.
What to Watch Next The next test is now underway. It is whether the IGV software ETF can extend its gain and whether Atlassian, HubSpot and Monday.com keep moving together, since a bounce built on sector rotation can fade as quickly as it formed.
Atlassian carries the stronger long-term argument, with its agent tooling anchored in customer context, yet the gain in Atlassian stock rests on sector flows, and a broader software pullback could reverse it.
Monday.com presents the tougher setup until JPMorgan Chase sees the down-market improvement the bank asked for, and investors may choose to reduce their exposure while the downgrade stands.
Contact [email protected] for any questions or corrections.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in HUBS over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Brian Halligan, a member of the Board of Directors, former CEO, and co-founder of HubSpot, Inc. (HUBS -3.53%), reported a sale of 8,500 shares of common stock on September 15, 2026 according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value~$2.1 millionShares sold (indirectly held)8,500Post-transaction shares (total)422,025Post-transaction shares (directly held)354,025Post-transaction shares (indirectly held)68,000Post-transaction value~$102.1 millionTransaction value based on SEC Form 4 weighted average sale price ($245.64); post-transaction value based on September 15, 2026 market close ($241.96).
Key questionsWhat was the nature of this executive disposition?
The sale was executed under a Rule 10b5-1 trading plan, which Brian Halligan established on March 12, 2026. These plans allow corporate insiders to schedule share sales in advance to avoid concerns of trading with material non-public information.What does the indirect ownership structure entail?
The shares were held by Wolf Investors, LLC, where the sole member is the Brian P. Halligan 2026 New Hampshire Trust. Brian Halligan serves as the settlor of this trust, while the LLC itself is managed by Paul Karger.How has the stock performed leading up to this filing?
As of the September 15, 2026 transaction date, shares of the cloud-hosted customer relationship management platform company had generated a one-year total return of -52%. The stock was priced at $213.74 as of the September 25, 2026 market close.What is the insider's remaining equity position?
Halligan retains a total beneficial interest of 422,025 shares following this transaction. This position, which includes 354,025 shares held directly and 68,000 shares held through Wolf Investors, represents approximately 0.82% of the company.Company OverviewMetricValueShare Price (as of market close 2026-09-25)$213.74Market Capitalization$11.3 billionRevenue (TTM)$3.4 billionNet Income (TTM)$146.9 millionCompany SnapshotHubSpot provides a comprehensive cloud-based customer relationship management (CRM) platform that integrates marketing, sales, customer service, and content management capabilities, generating revenue through subscription-based licensing and professional services.The company operates on a SaaS business model, delivering its platform through cloud infrastructure and monetizing through tiered subscription plans that scale with customer usage and feature requirements.HubSpot serves small to mid-market businesses and enterprises across the Americas, Europe, and Asia Pacific regions, targeting organizations seeking integrated solutions to optimize customer acquisition, retention, and operational efficiency.HubSpot operates as a leading provider of cloud-based CRM and business operations software. The company's integrated platform strategy consolidates critical business functions -- including marketing automation, sales enablement, customer service, and content management -- into a unified ecosystem, enabling customers to streamline workflows and improve customer lifecycle management.
HubSpot's competitive positioning is reinforced by its extensive feature set, including AI-driven capabilities such as chatbots and SEO optimization tools, coupled with a robust partner ecosystem that extends platform functionality and market reach.
What this transaction means for investorsThe September 15 sale of HubSpot stock by co-founder Brian Halligan occurred after the share price had dropped over 50% in the trailing 12 months. Even so, this was a non-discretionary transaction executed as part of a pre-established Rule 10b5-1 plan, rather than being a market-timed investment decision.
Halligan retains a substantial equity stake in the company of 422,025 shares post-sale, ensuring his continued alignment with shareholder interests. Consequently, the September 15 transaction is not necessarily a cause for investor concern.
A key contributing factor to the drop in HubSpot's stock price is that the company reduced its 2026 full-year guidance. Management originally forecasted sales in the range of $3.69 billion to $3.70 billion. However, in its second-quarter earnings results, HubSpot updated this outlook to between $3.678 billion to $3.686 billion. Both represent an 18% year-over-year increase, but Wall Street investors understandably did not take the slight drop as a good sign.
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Stock to Watch: HubSpot (HUBS - Free Report) Headquartered in Cambridge, MA, HubSpot provides inbound marketing and sales applications over the cloud. The software-as-a-service vendor helps businesses attract customers through search engine optimization, social media, blogging, website content management, marketing automation, email, CRM, analytics and reporting.
HUBS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. HUBS has a Growth Style Score of A, forecasting year-over-year earnings growth of 37.1% for the current fiscal year.
For fiscal 2026, 12 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.52 to $13.30 per share. HUBS boasts an average earnings surprise of +6.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, HUBS should be on investors' short list.
Docusign: Another Beat, Another Selloff—Why the Analysts Are WrongHubSpot NYSE: HUBS used its Analyst Day at UNBOUND to outline an AI-focused strategy centered on what Chief Executive Officer Yamini Rangan called the “outcomes era,” in which software companies are measured less by features and more by their ability to produce measurable business results for customers.
Rangan said the company’s approach rests on the view that AI intelligence alone is insufficient without business-specific context. HubSpot aims to use connected customer data, workflow logic, governance and permissions to help AI tools identify such issues as stalled deals, at-risk customers and changing sales pipelines.
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MarketBeat Week in Review – 06/01 - 06/05“Context is what turns that intelligence into measurable customer outcomes within businesses,” Rangan said. HubSpot said its analysis of customers using AI found stronger marketing, sales and service metrics when AI had what it considered good context, while outcomes deteriorated when AI used poor data or context.
AI-Native CRM and Agent Platform Chief Product and Technology Officer Duncan Lennox detailed an updated product architecture built around the company’s Smart CRM, Aviator agent harness and Growth Context graph. Aviator is designed to route tasks among different AI models, while Growth Context combines business, team and customer information to provide task-specific context.
MongoDB Is the Latest SaaS Apocalypse Victim to Say "Not Today"The company also introduced Context Home, a capability intended to allow customers to review and manage the information HubSpot uses to power AI functions. HubSpot said the tool will provide a context-completeness score and recommendations for adding information.
HubSpot has also rebuilt its Breeze Assistant as an interaction layer intended to let users request work through conversational prompts rather than navigating software menus. Lennox said the assistant can invoke agents and tools across the platform to create campaigns, draft content, build workflows and create custom agents.
At UNBOUND, HubSpot launched Campaign, Content, Nurture and Revenue agents, adding to existing Prospecting, Customer and Data Agent offerings. The company said it is also seeking to address “agent sprawl” through Agent Hub, a centralized location for customers to manage HubSpot and custom agents.
HubSpot said more than 55% of Pro Plus customers used Breeze Assistant as of the end of August, compared with 37% at the beginning of the year. Lennox said customer satisfaction for the tool increased from 54% to nearly 68% over the same period.
Open Ecosystem and Go-to-Market Changes The company emphasized an open, or “headless,” strategy that enables customers to access HubSpot’s data, context and work capabilities through APIs and external interfaces. HubSpot’s three-tier API strategy includes data APIs, context APIs that return computed insights, and work APIs that invoke HubSpot or custom agents to complete tasks.
Lennox said HubSpot has connectors with Claude, ChatGPT, Gemini and Copilot, and that it is the top CRM connector on Claude and ChatGPT. He added that weekly active users on ChatGPT were up 250% since June. HubSpot also announced an integration with ChatGPT Ads and an AI Growth Bundle for new customers that includes discounts on HubSpot Starter and credits, a ChatGPT Business seat offer and an advertising spend match.
Chief Customer Officer Jon Dick said AI is changing the software buying journey, with customers increasingly seeking proof of value in their own environments rather than evaluating feature lists and theoretical return on investment. HubSpot is responding by combining its sales and customer-success organizations, increasing partner involvement and focusing on helping customers build an initial AI use case before expanding usage.
Partners are a key part of the strategy. Rangan said HubSpot has more than 4,000 solution partners that source 25% of its ARR, help close nearly 50% of ARR and actively manage about 40% of the customer base. Dick said partner participation in up-market deals has been associated with nearly an 8-point higher win rate, 75% higher average selling price and a 14-point lift in net revenue retention.
Pricing, Growth Levers and Margin Targets HubSpot plans to continue shifting toward a hybrid pricing model of seats and credits. Seats provide access to platform data and AI capabilities used by employees, while credits are intended to monetize agentic work and outcomes. The company said it is testing a simplified seats-and-credits model with new customers in the Nordics and Benelux and plans to extend that pilot to new customers in EMEA.
Chief Financial Officer Kate Bueker said HubSpot’s core growth drivers remain up-market expansion, multi-hub adoption and down-market customer volume. The company had more than 300,000 customers, including 150,000 Starter customers, as of the second quarter. It said 70% of install-base ARR came from customers using three or more hubs, while only 9% came from single-hub customers.
HubSpot reported that deals above $120,000 in ARR grew 38% year over year in the second quarter and represented 18% of its install-base ARR. It also said it had more than 2.5 million paid seats, including more than 1 million paid Core Seats, at the end of the second quarter.
On AI adoption, Bueker said 19% of Pro Plus customers were using HubSpot agents in August, double the level at the beginning of the year. Monthly agentic actions rose 3.5 times, while monthly credit consumption more than doubled despite an April reduction in agent prices and a move toward outcome-based pricing.
The company said it expects 2026 non-GAAP operating margin of 21%, a 2-point year-over-year increase. For 2027, HubSpot targets non-GAAP operating margin of 23% to 24%. By 2030, it raised its long-term targets to 30% non-GAAP operating margin, 20% GAAP operating margin and stock-based compensation equal to 10% of revenue.
Bueker said HubSpot expects cost of goods sold growth to outpace revenue growth in 2027 as it invests in agent adoption and usage. However, the company expects operating-expense leverage from AI-enabled product development, sales, marketing, support and administrative processes to support continued margin expansion.
About HubSpot (NYSE:HUBS)HubSpot, Inc develops cloud-based customer relationship management (CRM) and marketing software for businesses. Its platform is designed to help organizations attract prospects, manage customer interactions, close sales and provide ongoing service through an integrated set of tools.
The company's products include Marketing Hub, Sales Hub, Service Hub, Content Hub, Operations Hub and Commerce Hub. These offerings support marketing automation, sales engagement, customer support, content management, data integration, payments and other commercial activities.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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CAMBRIDGE, Mass.--(BUSINESS WIRE)--How does AI actually deliver ROI? It's the question every business leader is asking right now, and everyone seems to have the same answer: context. But it's not just any context. Real AI ROI requires a specific, dynamic understanding of your business, your customers, and your team. The kind most AI tools don't have, and what most companies don't even know they're missing. This is what we call this Growth Context. When AI is fueled by this high quality context i.
CAMBRIDGE, Mass.--(BUSINESS WIRE)--HubSpot and OpenAI share a mission to help SMBs grow with AI, which means giving them access to enterprise-grade tools built for scaling companies. We have been working together to make this a reality. In 2025, HubSpot was the first CRM with a connector to ChatGPT. We launched with a simple goal: help you bring your customer knowledge into the tool you use every day. Today, it's the most popular CRM connector for ChatGPT. We've seen 250% growth in weekly activ.
Key Takeaways HubSpot's operating cash flow rose 36% and free cash flow jumped 44% year over year in Q2.Stronger revenue growth and wider margins are supporting HubSpot's cash generation.AI products, core seats and credits, multi-hub adoption and upmarket deals are boosting cash flow. HubSpot, Inc. (HUBS - Free Report) is steadily strengthening its financial profile through robust revenue growth, expanding operating profitability and stronger cash generation. The company generated $222.8 million in cash from operating activities in the second quarter, up from $164.4 million in the year-ago quarter. Non-GAAP free cash flow increased 44% year over year to $167.9 million compared with $116.2 million in the prior-year period.
The improvement in cash generation is backed by stronger operating performance. In the second quarter, revenues increased 20% year over year to $911.7 million, with subscription revenues rising 20% to $894 million. At the same time, non-GAAP operating income climbed 44% to $185.3 million, while the non-GAAP operating margin expanded to 20.3% from 17% in the year-ago quarter.
HUBS generates substantial revenues from its subscription, which is recurring in nature. Revenue growth doesn’t necessarily translate into higher operating expenses. Scalability of its cloud platform allows revenue to grow faster than certain operating expenses. Hence, incremental revenues lead to stronger growth in operating profit and cash generation.
Strong operating cash flow is also boosting free cash flow. HUBS’ non-GAAP free cash flow stood at $167.9 million in the second quarter. Growing adoption of its AI native products, monetization through core seats and credits, multi-hub adoption and larger upmarket deals are also boosting cash generation.
How are Competitors Faring?In the CRM space, HubSpot faces competition from Salesforce, Inc. (CRM - Free Report) , one of the world’s leading Customer Relationship Management companies. Salesforce continues to generate cash that supports product investment and capital return. In the second quarter of fiscal 2027, operating cash flow increased 71% year over year to $1.27 billion and free cash flow rose 81% to $1.1 billion. For the first six months, operating cash flow reached $7.97 billion and free cash flow was $7.65 billion.
Microsoft Corporation (MSFT - Free Report) is also witnessing strong traction in the Productivity & Business Processes segment, which includes the Office and Dynamics CRM businesses. Heavy infrastructure spending is absorbing a growing share of Microsoft’s operating cash generation. Cash flow from operations rose about 30% year over year to $55.4 billion in fourth-quarter fiscal 2026, but free cash flow fell 23% to $19.6 billion as investment accelerated. Management expects free cash flow to return to positive growth during fiscal 2027, so execution on that recovery matters as capital expenditures remain elevated.
HUBS’ Price Performance, Valuation and EstimatesHubSpot has declined 52.3% over the past year compared to the industry’s decline of 10.9%.
Image Source: Zacks Investment Research
Going by the price/book ratio, the company's shares currently trade at 7.48 book value, higher than 5.08 of the industry average.
Image Source: Zacks Investment Research
HUBS’ earnings estimates for 2026 and 2027 have improved over the past 60 days.
Image Source: Zacks Investment Research
HubSpot currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On September 14, 2026, HubSpot Inc HUBS shares rose 11.2% to a current price of $250.61. The stock has experienced volatility over the past year, trading between a 52-week high of $525.51 and a low of $169.63.
GF Value™ verdict: HUBS is currently priced at $250.61, which is 66.3% below its GF Value™ of $743.95, indicating substantial undervaluation.GF Score™ of 71/100 suggests an above-average fundamental performance compared to its peers.Notable insider activity shows that insiders sold $32.6M worth of shares over the past 12 months, indicating a net selling of $29.8M.Is HUBS Overvalued or Undervalued?Based on the GF Value™, HubSpot Inc appears significantly undervalued at its current price of $250.61, compared to the intrinsic value estimate of $743.95. This represents a margin of safety of 66.3%, suggesting a considerable upside potential if the market corrects itself to align with the intrinsic value. The GF Valuation label indicates that the stock is not only undervalued but also presents an investment opportunity for those who believe in the company’s future growth potential. GuruFocus' GF Value™ is derived from historical trading multiples, past business growth, and future performance estimates, providing a comprehensive view of a company's true worth.
While the current price may signal an opportunity, it is essential to consider the broader market conditions and the company's recent performance. HUBS has faced a year-to-date decline of 37.5% and a staggering 49% decrease over the past year, so potential investors should weigh these factors against the promising valuation metrics.
How Does HUBS's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)88.5x266.3xForward P/E14.9xN/AHUBS is currently trading at a P/E (TTM) of 88.5x, which is significantly below its 5-year median P/E of 266.3x, suggesting that the stock is undervalued relative to its historical performance. The forward P/E of 14.9x further reinforces this notion of undervaluation. This P/E analysis aligns with the GF Value™ verdict, indicating that HUBS is trading below its historical valuation, which may present a compelling opportunity for value-oriented investors.
What Does HUBS's GF Score™ Tell Us?The GF Score™ measures a company's overall financial health and performance compared to its peers across multiple dimensions. HUBS has a GF Score™ of 71/100, which suggests it is performing above average in key areas. The strongest sub-rank is the Growth Rank at 9/10, indicating robust growth potential. However, the Valuation Rank is notably low at 2/10, reflecting the current market pricing dynamics.
MetricRatingGF Score™71Financial Strength9/10Profitability4/10Growth9/10Valuation2/10Momentum4/10The scores collectively indicate that while HUBS has strong financial strength and growth potential, its valuation is currently a weakness. This suggests that while the company has robust fundamentals, the market may not yet be reflecting this strength in its price.
What Are Gurus and Insiders Doing with HUBS?Currently, five gurus hold shares of HUBS, with four increasing their positions while two have trimmed their holdings in recent quarters. This indicates a generally positive sentiment among institutional investors, which is an important signal for potential investors.
Regarding insider activity, over the past 12 months, company insiders bought $2.8M worth of shares but sold $32.6M, resulting in a net selling of $29.8M. The substantial selling by insiders could raise some caution, as it may indicate a lack of confidence in the stock's near-term performance. However, the buying activity by some insiders suggests that there are still those within the company who believe in HUBS's long-term potential.
What This Means for InvestorsBased on the analysis, HubSpot Inc HUBS is currently undervalued according to the GF Value™, offering a substantial margin of safety. While the stock has faced significant declines over the past year, the current price offers a compelling opportunity for long-term investors who are willing to navigate the inherent risks. For further insights, visit the HubSpot Inc (HUBS) stock page and explore additional metrics on the GF Value™ page.
Frequently Asked QuestionsWhat is HUBS's GF Score™?
HUBS has a GF Score™ of 71/100, indicating above-average fundamental performance compared to its peers.
Is HUBS overvalued or undervalued?
HUBS is currently undervalued, with a GF Value™ of $743.95 compared to its current price of $250.61.
What is HUBS's P/E ratio?
HUBS has a P/E (TTM) of 88.5x, which is significantly below its 5-year median P/E of 266.3x, indicating that it is trading at a lower valuation compared to its historical levels.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
California State Teachers Retirement System boosted its holdings in shares of HubSpot, Inc. (NYSE:HUBS – Free Report) by 17,004.9% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 10,573,899 shares of the software maker’s stock after purchasing an additional 10,512,081 shares during the period. California State Teachers Retirement System owned about 21.20% of HubSpot worth $1,929,842,000 at the end of the most recent reporting period.
Other hedge funds and other institutional investors have also bought and sold shares of the company. BlackRock Inc. bought a new position in HubSpot in the 2nd quarter worth $631,386,000. Price T Rowe Associates Inc. MD raised its position in shares of HubSpot by 36.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,581,922 shares of the software maker’s stock worth $1,838,727,000 after acquiring an additional 1,224,424 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its position in shares of HubSpot by 352.1% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 903,559 shares of the software maker’s stock worth $220,559,000 after acquiring an additional 703,706 shares in the last quarter. Capital World Investors purchased a new position in shares of HubSpot in the 4th quarter valued at approximately $259,930,000. Finally, AQR Capital Management LLC lifted its stake in shares of HubSpot by 117.6% in the 4th quarter. AQR Capital Management LLC now owns 1,188,981 shares of the software maker’s stock valued at $477,138,000 after purchasing an additional 642,545 shares during the period. Institutional investors own 90.39% of the company’s stock.
Insider Buying and Selling at HubSpot In related news, Director Brian Halligan sold 8,500 shares of HubSpot stock in a transaction dated Tuesday, July 21st. The shares were sold at an average price of $221.09, for a total transaction of $1,879,265.00. Following the completion of the transaction, the director directly owned 85,000 shares of the company’s stock, valued at approximately $18,792,650. The trade was a 9.09% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Gerald Dischler purchased 925 shares of the business’s stock in a transaction that occurred on Monday, August 10th. The shares were purchased at an average price of $215.93 per share, for a total transaction of $199,735.25. Following the completion of the acquisition, the director directly owned 1,940 shares in the company, valued at $418,904.20. The trade was a 91.13% increase in their position. The SEC filing for this purchase provides additional information. Insiders have sold 26,202 shares of company stock worth $5,477,709 over the last quarter. Insiders own 3.70% of the company’s stock.
Analysts Set New Price Targets HUBS has been the topic of several recent research reports. Wall Street Zen cut HubSpot from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 4th. Sanford C. Bernstein cut shares of HubSpot from an “outperform” rating to a “market perform” rating and dropped their target price for the company from $381.00 to $220.00 in a report on Thursday, August 6th. Stephens downgraded shares of HubSpot from an “overweight” rating to a “hold” rating and set a $251.00 target price on the stock. in a research report on Thursday, August 6th. The Goldman Sachs Group set a $276.00 price target on shares of HubSpot in a research note on Thursday, August 6th. Finally, Citigroup lowered their price target on shares of HubSpot from $217.00 to $210.00 and set a “buy” rating for the company in a research report on Friday, August 7th. Fifteen analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $271.90. View Our Latest Stock Analysis on HubSpot
HubSpot Stock Up 1.1% HubSpot stock opened at $226.01 on Friday. The company has a market cap of $11.27 billion, a price-to-earnings ratio of 79.86, a PEG ratio of 2.41 and a beta of 1.18. The firm’s fifty day moving average is $228.56 and its 200 day moving average is $224.31. HubSpot, Inc. has a 52-week low of $169.63 and a 52-week high of $525.51.
HubSpot (NYSE:HUBS – Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The software maker reported $3.26 EPS for the quarter, topping analysts’ consensus estimates of $3.02 by $0.24. HubSpot had a net margin of 4.26% and a return on equity of 8.66%. The business had revenue of $911.74 million during the quarter, compared to analysts’ expectations of $898.31 million. During the same period last year, the company posted $2.19 EPS. The business’s revenue was up 19.8% on a year-over-year basis. HubSpot has set its FY 2026 guidance at 13.230-13.310 EPS and its Q3 2026 guidance at 3.250-3.270 EPS. On average, equities research analysts anticipate that HubSpot, Inc. will post 4.55 earnings per share for the current fiscal year.
HubSpot Profile (Free Report)
HubSpot, Inc develops cloud-based customer relationship management (CRM) and marketing software for businesses. Its platform is designed to help organizations attract prospects, manage customer interactions, close sales and provide ongoing service through an integrated set of tools.
The company’s products include Marketing Hub, Sales Hub, Service Hub, Content Hub, Operations Hub and Commerce Hub. These offerings support marketing automation, sales engagement, customer support, content management, data integration, payments and other commercial activities.
Recommended Stories Five stocks we like better than HubSpot Block Makes a Federal Trust Bank Move That Could Reshape Its Fintech Model Kroger’s Textbook Entry for Buy-and-Hold Investors AST SpaceMobile Looks to Extend Its 30-Day FCC Satellite Testing Window Amgen Drops 10% on a Trial It Didn’t Even Run Want to see what other hedge funds are holding HUBS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for HubSpot, Inc. (NYSE:HUBS – Free Report).
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of HUBS, CRM, MSFT, ADBE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
HubSpot, Inc. (HUBS) Goldman Sachs Communacopia + Technology Conference 2026 September 9, 2026 4:45 PM EDT
Company Participants
Yamini Rangan - CEO, President and Director
Conference Call Participants
Gabriela Borges - Goldman Sachs Group, Inc., Research Division
Presentation
Gabriela Borges
Goldman Sachs Group, Inc., Research Division
All right. Fantastic. We will go ahead and kick off the afternoon day 2, Goldman Sachs Communacopia & Technology. Delighted to have with me on stage, Yamini Rangan, CEO of HubSpot. Thank you for being here again.
Yamini Rangan
CEO, President and Director
Thank you, Gabriela. It's a great conference, and thanks for having me again.
Gabriela Borges
Goldman Sachs Group, Inc., Research Division
It's absolutely our pleasure. Yamini, I know how customer-obsessed you are. I think that's the best word to describe some of the leadership philosophy that you have at HubSpot. Help us bridge the gap a little bit between what we see on Twitter and some of the feedback we see on LinkedIn about AI and what you're actually hearing in the field from the mid-market customers that are core to the HubSpot base on what the vision is for where AI goes over the next 2 years.
Yamini Rangan
CEO, President and Director
Okay. Yes, there's a big wide gap between what is happening on X and what is happening on social post as well as what is happening from an AI perspective. I think the fundamental shift that's happening within software is that the prior generation of software, everything that we did was about delivering features that companies then implemented, and then they got their users to adopt it after the training period and then they got value from software. I think with AI, you fundamentally shifted that to delivering work for those users. And the work could be either a support ticket that you're doing
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How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
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Stock to Watch: HubSpot (HUBS - Free Report) Headquartered in Cambridge, MA, HubSpot Inc. provides inbound marketing and sales applications over the cloud. The software-as-a-service vendor helps businesses attract customers through search engine optimization, social media, blogging, website content management, marketing automation, email, CRM, analytics and reporting.
HUBS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Computer and Technology stock. HUBS has a Momentum Style Score of A, and shares are up 14.7% over the past four weeks.
For fiscal 2026, 11 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.17 to $13.30 per share. HUBS boasts an average earnings surprise of +6.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, HUBS should be on investors' short list.
Nykredit A S acquired a new position in HubSpot, Inc. (NYSE:HUBS – Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm acquired 5,847 shares of the software maker’s stock, valued at approximately $1,067,000.
Other hedge funds and other institutional investors have also bought and sold shares of the company. Turning Point Benefit Group Inc. bought a new position in HubSpot during the third quarter valued at approximately $25,000. Rakuten Securities Inc. grew its position in HubSpot by 783.3% in the 2nd quarter. Rakuten Securities Inc. now owns 53 shares of the software maker’s stock worth $30,000 after purchasing an additional 47 shares during the period. Cary Street Partners Investment Advisory LLC purchased a new stake in HubSpot during the 4th quarter valued at $33,000. Osterweis Capital Management Inc. purchased a new stake in HubSpot during the 2nd quarter valued at $34,000. Finally, Larson Financial Group LLC lifted its holdings in shares of HubSpot by 378.9% during the 4th quarter. Larson Financial Group LLC now owns 91 shares of the software maker’s stock valued at $37,000 after buying an additional 72 shares during the period. Institutional investors own 90.39% of the company’s stock.
Analyst Upgrades and Downgrades HUBS has been the topic of a number of research reports. Royal Bank Of Canada dropped their price target on HubSpot from $350.00 to $300.00 and set an “outperform” rating on the stock in a research note on Thursday, August 6th. Barclays lowered their target price on HubSpot from $270.00 to $240.00 and set an “overweight” rating on the stock in a report on Thursday, August 6th. Bank of America reaffirmed an “underperform” rating and set a $200.00 price target on shares of HubSpot in a research report on Thursday, August 6th. Zacks Research downgraded shares of HubSpot from a “strong-buy” rating to a “hold” rating in a report on Wednesday, August 12th. Finally, Stifel Nicolaus lowered shares of HubSpot from a “buy” rating to a “hold” rating and cut their target price for the company from $275.00 to $200.00 in a research report on Thursday, August 6th. Fifteen research analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $271.07.
Get Our Latest Analysis on HUBS Insider Transactions at HubSpot In other news, Director Gerald Dischler bought 925 shares of the company’s stock in a transaction that occurred on Monday, August 10th. The stock was bought at an average price of $215.93 per share, with a total value of $199,735.25. Following the acquisition, the director owned 1,940 shares of the company’s stock, valued at approximately $418,904.20. This represents a 91.13% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Erika Fisher sold 702 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $235.22, for a total value of $165,124.44. Following the completion of the sale, the insider owned 14,581 shares of the company’s stock, valued at $3,429,742.82. The trade was a 4.59% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 26,202 shares of company stock valued at $5,477,709 over the last three months. Corporate insiders own 3.70% of the company’s stock.
HubSpot Stock Down 0.1% HUBS stock opened at $247.24 on Tuesday. HubSpot, Inc. has a twelve month low of $169.63 and a twelve month high of $525.51. The stock has a market cap of $12.33 billion, a P/E ratio of 87.36, a PEG ratio of 2.67 and a beta of 1.18. The business’s 50-day moving average price is $225.24 and its 200-day moving average price is $224.50.
HubSpot (NYSE:HUBS – Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The software maker reported $3.26 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.02 by $0.24. HubSpot had a return on equity of 8.66% and a net margin of 4.26%.The company had revenue of $911.74 million during the quarter, compared to the consensus estimate of $898.31 million. During the same period in the previous year, the company posted $2.19 EPS. The firm’s revenue was up 19.8% on a year-over-year basis. HubSpot has set its FY 2026 guidance at 13.230-13.310 EPS and its Q3 2026 guidance at 3.250-3.270 EPS. On average, equities research analysts expect that HubSpot, Inc. will post 4.55 earnings per share for the current fiscal year.
HubSpot Profile (Free Report)
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.
Further Reading Five stocks we like better than HubSpot 3 Under-the-Radar Defense Stocks With Record Backlogs This Korea ETF Has Soared, But the Rally May Not Be Over Why Guidewire’s Post-Earnings Plunge May Not Last Ride-Share Reckoning: Tesla Drives Into Uber’s Lane Want to see what other hedge funds are holding HUBS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for HubSpot, Inc. (NYSE:HUBS – Free Report).
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A month has gone by since the last earnings report for HubSpot (HUBS - Free Report) . Shares have added about 26% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is HubSpot due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for HubSpot, Inc. before we dive into how investors and analysts have reacted as of late.
HubSpot Q2 Earnings Beat Estimates on Healthy Top-Line Growth
HubSpot reported solid second-quarter 2026 results, with both top and bottom lines surpassing the Zacks Consensus Estimate.
The company delivered strong 20% year-over-year revenue growth, supported by continued expansion of its subscription business, healthy customer additions, sustained demand for its artificial intelligence (AI)-powered CRM offerings and growth in professional services.
Net Income
On a GAAP basis, the company recorded a net income of $43.3 million or 86 cents per share against a net loss of $3.3 million or a loss of 6 cents per share in the year-ago quarter. Healthy top-line growth boosted the bottom line during the quarter.
Non-GAAP net income was $164.8 million or $3.26 per share, up from $117.3 million or $2.19 per share in the prior-year quarter. The bottom line comfortably beat the Zacks Consensus Estimate of $3.02 per share.
Revenues
Quarterly revenues improved to $911.7 million from $760.9 million reported in the year-ago quarter, supported by robust growth in both the Subscription and Professional services segments. The top line beat the Zacks Consensus Estimate of $897.8 million.
Subscription revenues rose to $894 million, up 20% year over year, driven by continued customer acquisition, expansion within the existing customer base, and increased adoption of the company's AI-powered CRM platform. Average subscription revenues per customer increased 4% year over year to $11,800.
Professional services and other revenues totaled $17.7 million, up 8% year over year, reflecting increased demand for implementation, onboarding and customer success services supporting new customer additions and platform expansion.
HubSpot added more than 6,900 net new customers during the quarter, increasing the total customer count to 306,446, up 14% year over year. Calculated billings in the second quarter of 2026 increased 14% year over year to $929.7 million.
Other Details
Gross profit in the quarter was $750.9 million, up from $638.7 million in the year-ago quarter. Total operating expenses were $707.5 million compared with $663.3 million in the year-ago quarter. Non-GAAP operating income improved to $185.3 million from $129.1 million, with respective margins of 20.3% and 17%.
Cash Flow & Liquidity
In the second quarter of 2026, the company generated $222.8 million of cash from operating activities compared with $164.4 million in the year-earlier quarter. In the first six months of 2026, HubSpot generated $421.6 million in cash compared with $325.9 million in the year-ago period. As of June 30, 2026, the company had $958.3 million in cash and cash equivalents, with $98.8 million in other long-term liabilities.
Outlook
For the third quarter of 2026, HubSpot forecasts revenues in the range of $924 million to $925 million, up 14% year over year. The company expects non-GAAP net income per share in the band of $3.25-$3.27. Non-GAAP operating income is expected to be in the range of $187-$188 million, indicating a 20% operating profit margin.
For 2026, management estimates revenues between $3.68 billion and $3.69 billion, up 18% year over year on a reported basis. Non-GAAP operating income is expected to be in the range of $762-$766 million, representing a 21% operating profit margin. Non-GAAP net income per share is likely to be in the range of $13.23-$13.31.
How Have Estimates Been Moving Since Then?It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -22.28% due to these changes.
VGM ScoresAt this time, HubSpot has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, HubSpot has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerHubSpot is part of the Zacks Internet - Software industry. Over the past month, Reddit Inc. (RDDT - Free Report) , a stock from the same industry, has gained 3.4%. The company reported its results for the quarter ended June 2026 more than a month ago.
Reddit Inc. reported revenues of $804.91 million in the last reported quarter, representing a year-over-year change of +61.1%. EPS of $1.25 for the same period compares with $0.45 a year ago.
For the current quarter, Reddit Inc. is expected to post earnings of $1.33 per share, indicating a change of +66.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.8% over the last 30 days.
Reddit Inc. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
Kathryn Bueker, Chief Financial Officer of HubSpot, Inc. (HUBS +5.70%), disposed of 1,077 shares on September 1, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value~$270,445Shares sold1,077Post-transaction shares (directly held)55,272Post-transaction value$13.88 millionTransaction value based on SEC Form 4 weighted average sale price ($251.11); post-transaction value based on September 1, 2026 market close ($251.11).
Key questionsWhat prompted this share disposition?
The disposal of 1,077 shares was a non-discretionary event executed to cover tax withholding obligations associated with the settlement of restricted stock units (RSUs).What is the current scale of the CFO's remaining equity holdings?
Following this transaction, Kathryn Bueker holds 55,272 shares of common stock directly, which represents a market value of $13.88 million based on the September 1, 2026 market close.How significant is the underlying vesting event relative to the total position?
The number of shares withheld for taxes represented 2% of the total shares held before the transaction, leaving the CFO's direct interest in the $12.9 billion software company largely intact.Company OverviewMetricValueShare Price (as of market close 2026-09-01)$251.11Market Capitalization$12.9 billionRevenue (TTM)$3.4 billionNet Income (TTM)$146.9 millionCompany SnapshotHubSpot provides a comprehensive, cloud-based customer relationship management (CRM) platform featuring integrated modules for marketing, sales, customer service, and content management, supplemented by specialized tools including SEO optimization, website management, and AI-driven chatbot capabilities.The company operates a subscription-based SaaS business model, generating recurring revenue through tiered pricing structures that serve businesses of varying sizes and operational complexity across multiple geographies.HubSpot's customer base encompasses small-to-mid-market and enterprise organizations across the Americas, Europe, and Asia Pacific regions that require integrated customer engagement and operational optimization solutions.HubSpot operates as a leading provider of cloud-based CRM and customer engagement software, serving a global customer base with an integrated platform that consolidates marketing, sales, and service functions.
The company has established a scalable SaaS business model with $3.4 billion in trailing 12-month revenue, positioning itself as a significant player in the enterprise software application sector. HubSpot's competitive advantage derives from its comprehensive platform integration, extensive ecosystem of third-party applications, and focus on delivering accessible solutions across the customer lifecycle.
What this transaction means for investorsThe September 1 sale of HubSpot stock by CFO Kathryn Bueker is not a red flag for investors. It was a non-discretionary transaction executed to fulfill tax withholding obligations in connection with the vesting of RSUs.
An RSU is a form of compensation where a company grants an employee shares of stock at a future date. When that vesting date arrives, as was the case here, a "sell to cover" transaction occurs to pay the related taxes.
Bueker's sale came at a time when shares were recovering from a 52-week low of $169.63 reached in June, after Wall Street investors feared the company would lose business to the artificial intelligence boom. Instead, HubSpot has proven it is thriving.
The CRM provider reported solid 20% year-over-year growth in revenue to $911.7 million for the second quarter. This helped it achieve net income of $43.3 million, an impressive turnaround from the prior year's net loss of $3.3 million.
HubSpot is positioning itself as an AI platform, evolving from a traditional SaaS model to one that incorporates consumption-based pricing for use of its AI agents.
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Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: HubSpot (HUBS - Free Report) Headquartered in Cambridge, MA, HubSpot Inc. provides inbound marketing and sales applications over the cloud. The software-as-a-service vendor helps businesses attract customers through search engine optimization, social media, blogging, website content management, marketing automation, email, CRM, analytics and reporting.
HUBS is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. HUBS has a Growth Style Score of A, forecasting year-over-year earnings growth of 36.9% for the current fiscal year.
10 analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.15 to $13.28 per share. HUBS also boasts an average earnings surprise of +6.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, HUBS should be on investors' short list.
Rangan Yamini, Chief Executive Officer & Pres of HubSpot, Inc. (HUBS +5.48%), reported a disposition of 2,622 shares on Sept. 1, 2026, according to a recent SEC Form 4 filing. The sale was non-discretionary and was executed to cover tax obligations related to the settlement of restricted stock units.
Transaction summaryMetricValueTransaction value~$658,000Shares sold2,622Post-transaction shares (directly held)~101,000Post-transaction value$25.41 millionTransaction value based on SEC Form 4 weighted average sale price ($251.11); post-transaction value based on Sept. 1, 2026, market close ($251.11).
Key questionsWhat was the nature of this equity transaction?
The disposition was a non-discretionary transaction in which HubSpot withheld 2,622 shares to satisfy tax withholding requirements associated with the settlement of equity awards.How does this affect the Chief Executive Officer's equity stake?
Following this tax-related withholding, the insider continues to hold ~101,000 shares directly, representing a market value of $25.41 million as of the Sept. 1, 2026, market close.What business operations support the value of these equity holdings?
HubSpot provides a cloud-hosted customer relationship management platform with modules for marketing and content management, serving a global client base across the Americas, Europe, and Asia-Pacific regions.Company OverviewMetricValueShare Price (as of market close 2026-09-01)$251.11Market Capitalization$12.5 billionRevenue (TTM)$3.4 billionNet Income (TTM)$146.9 millionCompany SnapshotHubSpot provides a comprehensive, cloud-based customer relationship management (CRM) platform featuring integrated modules for marketing, sales, customer service, and content management, supplemented by specialized tools, including SEO, website management, and AI-driven chatbot capabilities.The company operates a subscription-based SaaS business model, generating recurring revenue through tiered pricing structures that serve businesses of varying sizes and operational complexity across multiple geographies.HubSpot's customer base encompasses small- to mid-market and enterprise organizations across the Americas, Europe, and Asia Pacific that require integrated customer engagement and operational optimization solutions.HubSpot operates as a leading provider of cloud-based CRM and customer engagement software, serving a global customer base with an integrated platform that consolidates marketing, sales, and service functions. The company has established a scalable SaaS business model with $3.4 billion in TTM revenue and demonstrated profitability with $146.9 million in TTM net income, positioning itself as a significant player in the enterprise software application sector. HubSpot's competitive advantage derives from its comprehensive platform integration, extensive ecosystem of third-party applications, and focus on delivering accessible solutions across the customer lifecycle.
What this transaction means for investorsThe key to understanding CEO Rangan Yamini's sale of HubSpot shares is tax obligations.
A sale of restricted stock units is a taxable event, meaning he was likely selling some shares regardless of the stock's performance. Moreover, the sale involved less than 3% of his shares. Given those factors, it is highly unlikely that Yamini sold shares of the SaaS stock because of worries over the stock’s future.
Admittedly, HubSpot stock had fallen by 48% over the previous year and had recently reached a five-year low. Investors appear to have sold out of concern about a so-called "SaaSpocalypse," a fear that AI engines would render its software obsolete.
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Fortunately, the reality suggests that HubSpot actually remains in a growth mode. In the first half of 2026, revenue increased by 21% year over year. Also, it returned to profitability for that period as the company kept its expense growth in check.
Furthermore, the price-to-sales (P/S) ratio of 3.8 closely approximates the S&P 500 average, arguably making HubSpot closer to a buy than a sell. Amid its revenue growth and lower valuation, it is likely Yamini will continue to hold his shares if he possibly can.
CAMBRIDGE, Mass.--(BUSINESS WIRE)--HubSpot, Inc., the agentic customer platform for scaling businesses, announced today that Yamini Rangan, the Company's Chief Executive Officer, is scheduled to present at the Goldman Sachs Communacopia + Technology Conference in San Francisco, California on Wednesday, September 9 at 4:45 p.m. ET. All interested parties can access the webcast live and a replay of the webcast will be available on the Company's investor relations website at ir.hubspot.com. The Co.
Deutsche Bank AG purchased a new stake in HubSpot, Inc. (NYSE:HUBS – Free Report) during the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 29,798 shares of the software maker’s stock, valued at approximately $5,438,000. Deutsche Bank AG owned approximately 0.06% of HubSpot at the end of the most recent reporting period.
A number of other hedge funds have also added to or reduced their stakes in the business. National Bank of Canada FI lifted its stake in HubSpot by 8.6% in the 3rd quarter. National Bank of Canada FI now owns 379 shares of the software maker’s stock valued at $177,000 after purchasing an additional 30 shares during the last quarter. Rakuten Securities Inc. lifted its holdings in shares of HubSpot by 783.3% during the 2nd quarter. Rakuten Securities Inc. now owns 53 shares of the software maker’s stock worth $30,000 after acquiring an additional 47 shares during the period. Orion Porfolio Solutions LLC boosted its stake in HubSpot by 2.9% in the second quarter. Orion Porfolio Solutions LLC now owns 1,784 shares of the software maker’s stock valued at $994,000 after buying an additional 51 shares in the last quarter. Elevation Point Wealth Partners LLC lifted its stake in shares of HubSpot by 3.3% in the 4th quarter. Elevation Point Wealth Partners LLC now owns 1,738 shares of the software maker’s stock valued at $697,000 after acquiring an additional 55 shares during the last quarter. Finally, Turning Point Benefit Group Inc. acquired a new stake in HubSpot during the 3rd quarter worth approximately $25,000. Institutional investors own 90.39% of the company’s stock.
HubSpot Price Performance NYSE HUBS opened at $243.85 on Tuesday. The business’s fifty day moving average price is $210.81 and its 200-day moving average price is $223.33. The stock has a market capitalization of $12.16 billion, a price-to-earnings ratio of 86.17, a PEG ratio of 2.46 and a beta of 1.19. HubSpot, Inc. has a 1-year low of $169.63 and a 1-year high of $525.51.
HubSpot (NYSE:HUBS – Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The software maker reported $3.26 EPS for the quarter, beating the consensus estimate of $3.02 by $0.24. HubSpot had a net margin of 4.26% and a return on equity of 8.66%. The firm had revenue of $911.74 million for the quarter, compared to the consensus estimate of $898.31 million. During the same period last year, the firm earned $2.19 EPS. The company’s revenue was up 19.8% on a year-over-year basis. HubSpot has set its FY 2026 guidance at 13.230-13.310 EPS and its Q3 2026 guidance at 3.250-3.270 EPS. Equities research analysts anticipate that HubSpot, Inc. will post 4.54 EPS for the current year. Analyst Upgrades and Downgrades HUBS has been the subject of several recent analyst reports. Capital One Financial set a $206.00 price objective on shares of HubSpot and gave the stock an “equal weight” rating in a research report on Thursday, August 6th. Wolfe Research downgraded HubSpot from an “outperform” rating to a “peer perform” rating in a research note on Thursday, August 6th. William Blair cut shares of HubSpot from an “outperform” rating to a “market perform” rating in a research report on Friday, May 8th. Raymond James Financial reaffirmed an “outperform” rating and set a $250.00 price objective on shares of HubSpot in a research note on Friday, May 8th. Finally, BNP Paribas Exane cut HubSpot from an “outperform” rating to a “neutral” rating and set a $210.00 price objective for the company. in a report on Monday, May 11th. Fifteen research analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, HubSpot currently has an average rating of “Hold” and an average target price of $268.90.
Check Out Our Latest Research Report on HUBS
Insider Activity In other news, Director Gerald Dischler bought 925 shares of the stock in a transaction dated Monday, August 10th. The stock was purchased at an average price of $215.93 per share, for a total transaction of $199,735.25. Following the acquisition, the director owned 1,940 shares of the company’s stock, valued at $418,904.20. The trade was a 91.13% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Erika Ashley Fisher sold 702 shares of the company’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $235.22, for a total transaction of $165,124.44. Following the completion of the transaction, the insider owned 14,581 shares in the company, valued at approximately $3,429,742.82. The trade was a 4.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 26,202 shares of company stock valued at $5,477,709. 3.70% of the stock is currently owned by insiders.
HubSpot Profile (Free Report)
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.
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Key Takeaways HubSpot's subscription revenues rose 20% year over year to $894 million in the second quarter.HUBS added customers and expanded monetization, with subscription revenue per customer up 4%.AI adoption and larger deals are supporting growth as customers increasingly use multiple Hubs. HubSpot, Inc. (HUBS - Free Report) is seeing growing user engagement in its customer relationship management platform, which is propelling subscription-based revenues. In the second quarter, Subscription revenues rose to $894 million, up 20% year over year. The figure surpassed the Zacks Consensus Estimate of $878.85 million.
Strong growth of its customer base is the main growth driver. The company had 306,446 customers at the end of June 2026, implying a 14% year-over-year increase. Improved monetization of existing customers is also supporting the top line. HubSpot’s average subscription revenue per customer rose 4% year over year to $11,800 in the second quarter.
The company continued to see customers opting for several HubSpot products instead of relying on a single Hub. In the second quarter, 64% of new Pro+ customers purchased multiple Hubs. It continued to gain traction with larger businesses. Large enterprise customers usually bring higher subscription values. The company reported that deals generating more than $120,000 in annual recurring revenue increased 38% year over year.
Growing customer engagement with HubSpot’s AI products is also driving net sales. More than 16,000 customers had activated Data Agent, nearly 17,000 had activated Prospecting Agent, and more than 10,000 had adopted Customer Agent by the end of the quarter. The company is also steadily expanding the range of capabilities customers can adopt within the platform. It has recently introduced products like Revenue Hub. Management stated upmarket demand for a unified AI-powered customer platform remains evident and expects platform consolidation and AI adoption to support the longer-term opportunity.
How are Competitors Faring?In the CRM space, HubSpot faces competition from Salesforce, Inc. (CRM - Free Report) , one of the world’s leading Customer Relationship Management companies. Salesforce continues to benefit as enterprises modernize customer-facing processes and reduce vendor sprawl. In the first quarter of fiscal 2027, subscription and support revenues increased 14% year over year to $10.6 billion, and the current remaining performance obligation grew 14%, signaling continued multi-year commitments. For fiscal 2027, Salesforce maintained subscription and support growth guidance of slightly under 12% year over year in nominal terms and about 11% in constant currency, which implies continued reliance on renewals and expansion within the installed base.
Microsoft Corporation (MSFT - Free Report) is also witnessing strong traction in the Productivity & Business Processes segment, which includes the Office and Dynamics CRM businesses. In the June quarter, revenues from Microsoft’s Dynamic 365 surged 13% year over year. The Dynamic 365 is powered by Microsoft Copilot, which facilitates the generation of engaging content, key insights and summarizes customer experience.
HUBS’ Price Performance, Valuation and EstimatesHubSpot has declined 50.3% over the past year compared to the industry’s decline of 13.4%.
Image Source: Zacks Investment Research
Going by the price/book ratio, the company's shares currently trade at 7.35 book value, higher than 4.57 of the industry average.
Image Source: Zacks Investment Research
HUBS’ earnings estimates for 2026 and 2027 have improved, over the past 60 days.
Image Source: Zacks Investment Research
HubSpot currently sports a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Algert Global LLC acquired a new stake in HubSpot, Inc. (NYSE: HUBS) in the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 45,080 shares of the software maker's stock, valued at approximately $8,228,000. Algert Global LLC owned approximately 0.09% of HubSpot as
Bank of New York Mellon Corp acquired a new stake in HubSpot, Inc. (NYSE:HUBS – Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 252,978 shares of the software maker’s stock, valued at approximately $46,171,000. Bank of New York Mellon Corp owned about 0.49% of HubSpot at the end of the most recent reporting period.
Several other institutional investors have also added to or reduced their stakes in HUBS. Empowered Funds LLC boosted its stake in HubSpot by 88.5% in the first quarter. Empowered Funds LLC now owns 1,570 shares of the software maker’s stock valued at $897,000 after buying an additional 737 shares in the last quarter. NewEdge Advisors LLC raised its stake in HubSpot by 12.1% during the second quarter. NewEdge Advisors LLC now owns 4,788 shares of the software maker’s stock worth $2,665,000 after acquiring an additional 516 shares in the last quarter. Treasurer of the State of North Carolina lifted its holdings in shares of HubSpot by 4.7% in the second quarter. Treasurer of the State of North Carolina now owns 23,754 shares of the software maker’s stock worth $13,222,000 after acquiring an additional 1,077 shares during the last quarter. Osterweis Capital Management Inc. bought a new position in shares of HubSpot in the second quarter worth about $34,000. Finally, Alliancebernstein L.P. boosted its stake in shares of HubSpot by 35.0% in the 2nd quarter. Alliancebernstein L.P. now owns 376,076 shares of the software maker’s stock valued at $209,335,000 after purchasing an additional 97,469 shares in the last quarter. 90.39% of the stock is currently owned by institutional investors and hedge funds.
Wall Street Analyst Weigh In Several research analysts have recently issued reports on the stock. Wells Fargo & Company downgraded shares of HubSpot from an “overweight” rating to a “neutral” rating in a report on Thursday, August 6th. Zacks Research lowered HubSpot from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, August 12th. Wolfe Research cut HubSpot from an “outperform” rating to a “peer perform” rating in a report on Thursday, August 6th. Barclays dropped their target price on HubSpot from $270.00 to $240.00 and set an “overweight” rating for the company in a research report on Thursday, August 6th. Finally, Oppenheimer lowered HubSpot from an “outperform” rating to a “market perform” rating in a research note on Thursday, August 6th. Fifteen investment analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $268.90.
Read Our Latest Report on HubSpot HubSpot Stock Up 8.0% NYSE HUBS opened at $255.93 on Friday. The company has a market capitalization of $12.76 billion, a price-to-earnings ratio of 90.44, a PEG ratio of 2.57 and a beta of 1.19. HubSpot, Inc. has a twelve month low of $169.63 and a twelve month high of $525.51. The stock has a fifty day simple moving average of $214.72 and a 200 day simple moving average of $223.55.
HubSpot (NYSE:HUBS – Get Free Report) last announced its earnings results on Wednesday, August 5th. The software maker reported $3.26 EPS for the quarter, topping the consensus estimate of $3.02 by $0.24. The firm had revenue of $911.74 million for the quarter, compared to the consensus estimate of $898.31 million. HubSpot had a return on equity of 8.66% and a net margin of 4.26%.The business’s quarterly revenue was up 19.8% compared to the same quarter last year. During the same period in the previous year, the business earned $2.19 EPS. HubSpot has set its FY 2026 guidance at 13.230-13.310 EPS and its Q3 2026 guidance at 3.250-3.270 EPS. Research analysts expect that HubSpot, Inc. will post 4.54 earnings per share for the current fiscal year.
Insiders Place Their Bets In other news, Director Brian Halligan sold 8,500 shares of the company’s stock in a transaction on 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 directly owned 85,000 shares of the company’s stock, valued at approximately $18,792,650. This represents a 9.09% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Gerald Dischler acquired 925 shares of the firm’s stock in a transaction dated Monday, August 10th. The shares were purchased at an average price of $215.93 per share, with a total value of $199,735.25. Following the completion of the transaction, the director owned 1,940 shares of the company’s stock, valued at $418,904.20. This trade represents a 91.13% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last 90 days, insiders sold 26,202 shares of company stock worth $5,477,709. 3.70% of the stock is currently owned by insiders.
HubSpot Company Profile (Free Report)
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.
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On August 13, 2026, HubSpot Inc HUBS shares rose 14.5% today, closing at $240.51. This uptick comes amidst a challenging year for the stock, which has seen a 52-week range of $169.63 to $525.51.
GF Value™ verdict: Current price of $240.51 vs GF Value of $730.32 indicates a 67.1% undervaluation.GF Score™ of 69/100, suggesting the stock is above average in overall quality.Notable insider activity: Insiders bought $0.2M and sold $5.5M in the last 3 months.Is HUBS Overvalued or Undervalued?Based on the current price of $240.51 and the GF Value™ estimate of $730.32, HubSpot Inc appears significantly undervalued, offering a substantial margin of safety of 67.1%. The GF Valuation label indicates that the stock is significantly undervalued, presenting an intriguing opportunity for potential investors. GF Value™ is GuruFocus' proprietary estimate of intrinsic value, which takes into account historical trading multiples, past performance, and future growth projections.
This undervaluation suggests that the stock is trading well below its estimated worth, which may attract value-oriented investors. However, potential investors should remain cautious and consider the broader market conditions and company performance trends before making any decisions.
How Does HUBS's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)85.0x274.3xForward P/E18.4xN/AHubSpot's current P/E (TTM) of 85.0x is significantly lower than its 5-year median P/E of 274.3x, indicating that the stock is trading at a substantial discount relative to its historical valuation metrics. This analysis supports the GF Value™ verdict of being undervalued, suggesting a potential opportunity for value investors.
What Does HUBS's GF Score™ Tell Us?The GF Score™ measures a stock's overall quality based on various factors, including financial strength, profitability, growth, valuation, and momentum. HubSpot's GF Score™ of 69/100 indicates that it is above average in quality, with notable strengths and weaknesses in different areas.
MetricRatingGF Score™69/100Financial Strength9/10Profitability4/10Growth8/10Valuation2/10Momentum4/10The strongest area for HubSpot lies in financial strength, rated at 9/10, indicating a solid balance sheet and good liquidity. Conversely, the valuation sub-rank is notably weak at 2/10, reflecting the high P/E ratio compared to historical norms. This discrepancy emphasizes the potential for a valuation correction, aligning with the overall GF Value™ assessment of undervaluation.
What Are Gurus and Insiders Doing with HUBS?Currently, five gurus hold shares of HubSpot, with four increasing their positions and two reducing their stakes in recent quarters. This indicates a generally positive sentiment among professional investors, as more gurus are willing to invest further in the company.
In terms of insider activity, the pattern shows that insiders bought $0.2M worth of shares while selling $5.5M in the last three months. This selling may raise some caution, as it could indicate that insiders are taking profits. However, the buying activity suggests some level of confidence in the company's future performance, which could be seen as a positive signal in the context of the overall market dynamics.
What This Means for InvestorsBased on the GF Value™ estimate and the current stock price, HubSpot Inc HUBS appears significantly undervalued at this time. While the stock has faced challenges in the past year, the strong financial strength and the supportive guru activity could present a compelling case for further examination. For more detailed insights, you can visit the HubSpot Inc (HUBS) stock page and explore the GF Value™ page for an in-depth analysis.
Frequently Asked QuestionsWhat is HUBS's GF Score™?
HUBS has a GF Score™ of 69/100, indicating that it is above average in overall quality compared to its peers.
Is HUBS overvalued or undervalued?
According to the GF Value™ verdict, HUBS is significantly undervalued, with a potential upside of 67.1% based on the current price compared to the intrinsic value estimate.
What is HUBS's P/E ratio?
HUBS's P/E ratio (TTM) is 85.0x, which is significantly lower than its 5-year median P/E of 274.3x, indicating that the stock is trading at a considerable discount compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways HubSpot delivered 20% revenue growth as customers rose 14% and non-GAAP EPS jumped 49%.Enterprise deals above $120,000 in ARR grew 38%, while multi-hub adoption also advanced.AI usage surged, but HubSpot expects slower customer additions and pressured upgrade rates in 2026.
HubSpot, Inc. (HUBS - Free Report) has come under pressure even as its second-quarter results showed continued revenue growth, customer expansion and rising AI adoption. The stock’s decline puts greater focus on whether the company can convert its AI investments and enterprise momentum into durable growth.
The near-term picture is less clear. Management expects slower customer additions, pressure on net upgrade rates and longer buying cycles through the rest of 2026, while pricing changes are designed to lower barriers to AI adoption.
HUBS Faces Slower Buying DecisionsHubSpot said larger buying committees, more C-suite and Board approvals and longer sales cycles weighed on second-quarter demand. Customers are also optimizing budgets as they assess the cost and value of AI, increasing downgrade pressure and limiting near-term visibility.
Management expects net upgrade rates to remain pressured in the second half of 2026 because of customer budget optimization. It also expects net new annual recurring revenue growth to trail constant-currency revenue growth for the year. These trends could temper the pace of expansion even as the company continues investing in AI.
HubSpot Still Delivers Strong GrowthHubSpot reported second-quarter revenue of $911.7 million, up 20% year over year, while subscription revenue rose 20%. Non-GAAP operating income increased 44% to $185.3 million, and non-GAAP earnings reached $3.26 per share, up 49% year over year.
The customer base reached 306,446, up 14% year over year, while average subscription revenue per customer rose 4% to $11,800. HubSpot also generated $222.8 million in operating cash flow and $167.9 million in non-GAAP free cash flow, giving it room to fund product development and capital returns.
HUBS Builds Its Enterprise OpportunityEnterprise adoption remains a key part of the longer-term growth case. Deals above $120,000 in annual recurring revenue increased 38% year over year in the second quarter, showing continued demand from larger customers for a unified AI-powered customer platform.
Multi-hub adoption also advanced. About 64% of new Pro+ customers landed with multiple hubs, up 3 percentage points year over year. Salesforce, Inc. (CRM - Free Report) is similarly emphasizing agentic capabilities across its enterprise customer platform, underscoring the broader shift toward AI-enabled software consolidation.
HubSpot Expands AI MonetizationAI usage continued to build despite the pricing transition. Data Agent had more than 16,000 activated customers, up 80% sequentially, while Prospecting Agent had almost 17,000 and Customer Agent exceeded 10,000. In addition, 32% of Marketing Hub Pro+ customers activated AEO, and nearly 16,000 customers started a standalone AEO trial.
The key question is whether adoption becomes recurring revenue. HubSpot said credit consumption grew in the second quarter despite pricing changes, while management expects AI seats and credit usage to become incremental long-term revenue drivers. Microsoft Corporation (MSFT - Free Report) is also scaling AI through its cloud and productivity businesses, illustrating the broader industry focus on turning AI usage into monetized products.
HUBS Rank Signals a Mixed SetupHubSpot currently carries a Zacks Rank #3 (Hold), with a Value Score of C, Growth Score of A, Momentum Score of A and VGM Score of A. The Rank reflects the near-term balance between growth opportunities and pressure on customer buying behavior. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Style Score framework treats Style Scores as complements to the Zacks Rank. The A Growth Score reflects favorable growth characteristics, while the A Momentum Score points to favorable price-timing characteristics under the methodology. The C Value Score indicates weaker value characteristics, and the A VGM Score reflects the combined value, growth and momentum profile. With a #3 Rank, the overall setup remains mixed rather than a clear signal that the decline alone changes the investment case.
Key Takeaways HubSpot beat revenue and EPS estimates, with revenue up 20% and operating income rising 44%.AI adoption grew as Data Agent activations rose 80% sequentially and large ARR deals increased 38%.Longer sales cycles and 102% net revenue retention may limit subscription growth and near-term visibility.
HubSpot, Inc. (HUBS - Free Report) delivered a second-quarter earnings beat, with revenues and earnings topping the Zacks Consensus Estimate. Revenue increased 20% year over year, while AI adoption continued across its agent portfolio. However, management also pointed to longer sales cycles, larger buying committees and greater scrutiny of AI spending. The earnings beat supports the growth case, but investors must determine whether AI monetization can offset slower purchase decisions.
HUBS Beats on Revenue and EarningsHubSpot reported second-quarter revenues of $911.7 million, up 20% year over year and above the Zacks Consensus Estimate of $897.8 million. Subscription revenues increased 20% to $894 million, supported by customer additions, expansion within the installed base and adoption of AI-powered offerings.
Non-GAAP earnings came in at $3.26 per share, up from $2.19 per share a year earlier and above the Zacks Consensus Estimate of $3.02. Non-GAAP operating income increased 44% to $185.3 million, while the operating margin expanded to 20.3% from 17.0%.
HubSpot also added more than 6,900 net customers, bringing its total customer count to 306,446, up 14% year over year. Average subscription revenue per customer increased 4% to $11,800. These figures indicate that the earnings beat was supported by both customer growth and operating leverage.
HubSpot Raises the AI Adoption StoryAI adoption remained a central growth driver in the second quarter. Data Agent had more than 16,000 activated customers, up 80% sequentially, while Prospecting Agent had almost 17,000 activated customers and Customer Agent exceeded 10,000.
AEO adoption also expanded. About 32% of Marketing Hub Pro+ customers had activated AEO, while nearly 16,000 customers started a standalone AEO trial during the quarter. HubSpot said customers are seeing measurable outcomes from its agents, while management expects AI seats and credit usage to become incremental long-term revenue drivers. Upmarket adoption provides another indication of demand for the platform. Deals above $120,000 in annual recurring revenue increased 38% year over year, and 64% of new Pro+ customers landed with multiple hubs, up 3 percentage points year over year.
HubSpot faces competition from software companies also increasing their AI investments, including Adobe Inc. (ADBE - Free Report) and Datadog, Inc. (DDOG - Free Report) . As businesses seek automation and productivity gains, competitive pressure could require HubSpot to maintain a high pace of product innovation and AI investment. Its integrated customer platform, AI agents and Smart CRM could help differentiate the offering as customers look to consolidate software and workflows.
HUBS Maintains Its 2026 Growth OutlookHubSpot maintained its 2026 revenue outlook at $3.678 billion to $3.686 billion, representing 18% reported growth. Management expects full-year non-GAAP operating income of $762 million to $766 million, implying a 21% operating margin.
The outlook indicates that HubSpot expects the pricing and go-to-market transition to affect the timing of growth rather than eliminate its longer-term expansion opportunity. For the third quarter, the company expects revenues of $924 million to $925 million, up 14% year over year, with non-GAAP operating income of $187 million to $188 million.
Cash generation also provides support for the outlook. Second-quarter operating cash flow increased 36% year over year to $222.8 million, while non-GAAP free cash flow rose 44% to $167.9 million. HubSpot expects about $750 million of free cash flow in 2026 and authorized an additional share repurchase program of up to $1 billion.
HubSpot Confronts Longer Sales CyclesThe earnings beat did not remove the demand concerns highlighted by management. Customers are taking longer to approve AI investments as they seek greater confidence in potential returns and more predictable costs. Buying committees have become larger, while more deals require C-suite and Board approval.
HubSpot also introduced trials, lowered entry price points and expanded outcome-based pricing for several agents. These changes are intended to lower barriers to AI adoption, but management acknowledged that allowing customers to test products before purchasing can extend the buying process.
Net revenue retention was 102% in the second quarter, down one percentage point year over year. Management expects net upgrade rates to remain pressured in the second half of 2026 as existing customers optimize budgets. This could constrain subscription expansion and make near-term revenue growth less predictable.
HUBS Rank Frames the Earnings ReactionHubSpot currently carries a Zacks Rank #3 (Hold), with a Value Score of C, Growth Score of A, Momentum Score of A and VGM Score of A. The Zacks Style Scores complement the Zacks Rank by assessing value, growth, momentum and their combined characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The A Growth Score and A Momentum Score provide constructive signals, but the C Value Score indicates that valuation characteristics are less favorable. The Style Score Education material also emphasizes that the Zacks Rank remains the first step in stock selection because earnings estimate revisions are the most important factor affecting stock prices.
For HUBS, the earnings beat confirms that revenue growth, customer additions and AI adoption remain intact. Still, longer sales cycles, pressured upgrades, competitive investment and the pricing transition could limit near-term visibility. The outlook remains balanced as the AI opportunity is substantial, but investors may need further evidence that growing AI adoption will translate into durable incremental revenue.
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Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: HubSpot (HUBS - Free Report) Headquartered in Cambridge, MA, HubSpot Inc. provides inbound marketing and sales applications over the cloud. The software-as-a-service vendor helps businesses attract customers through search engine optimization, social media, blogging, website content management, marketing automation, email, CRM, analytics and reporting.
HUBS is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. HUBS has a Growth Style Score of A, forecasting year-over-year earnings growth of 35.5% for the current fiscal year.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.02 to $13.14 per share. HUBS also boasts an average earnings surprise of +6.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, HUBS should be on investors' short list.
Gerald Dischler, a recent member of the Board of Directors at HubSpot, Inc. (HUBS +3.08%), purchased 925 shares of common stock on August 10, 2026 according to the SEC Form 4 filing.
Transaction summaryMetricValueTransaction value~$200,000Shares purchased925Post-transaction shares (directly held)1,940Post-transaction value$418,865.40Transaction value based on SEC Form 4 weighted average purchase price ($215.93); post-transaction value based on August 10, 2026 market close ($215.91).
Key questionsWhat was the scale of this acquisition relative to the insider’s existing position?
This purchase represented a 91% increase in direct holdings, nearly doubling the director's exposure to the common stock.How does this activity align with the company’s recent market performance?
The director expanded the position following a 52% decline in the stock's value over the previous 12 months, during a period where the company reported trailing twelve-month revenue of $3.4 billion.What is the current status of the director’s total stake?
Following the transaction, the director holds 1,940 shares directly, which corresponds to a 0.0038% ownership stake in the company.Company OverviewMetricValueShare Price (as of market close 2026-08-10)$215.91Market Capitalization$10.8 billionRevenue (TTM)$3.4 billionNet Income (TTM)$146.9 millionCompany SnapshotHubSpot provides a comprehensive, cloud-based customer relationship management (CRM) platform featuring integrated modules for marketing, sales, customer service, and content management, complemented by specialized tools including search engine optimization, website management, and AI-driven chatbot capabilities.The company operates a subscription-based software-as-a-service business model, generating recurring revenue through tiered pricing structures that serve businesses of varying sizes and operational requirements across multiple geographies.HubSpot serves a diverse customer base spanning small and medium-sized enterprises to large corporations across the Americas, Europe, and the Asia Pacific region, targeting organizations seeking integrated solutions to streamline customer engagement and operational efficiency.HubSpot maintains a substantial market position with a market cap of $10.8 billion, supported by a workforce of 9,016 employees. The company's integrated CRM platform strategy differentiates it within the competitive software-as-a-service landscape by consolidating multiple business functions into a single ecosystem, enabling customers to reduce operational complexity while enhancing customer lifecycle management capabilities.
What this transaction means for investorsThe Aug. 10 purchase of HubSpot stock by new Board of Directors member Gerald Dischler, who joined the Board in August of 2026, signals his confidence in its share price appreciation potential. The transaction happened at $215.93 per share, indicating Dischler believes HubSpot is a buy at that price.
He could be right, considering the stock hit a 52-week high of $525.51 last September. The share price dropped after the company reported second-quarter earnings results on Aug. 5.
HubSpot’s Q2 revenue rose a strong 20% year over year to $911.7 million. This growth helped it increase Q2 net income to $43.3 million, a substantial turnaround from a net loss of $3.3 million in 2025.
Despite these excellent results, HubSpot’s share price fell due to weaker than expected guidance for Q3 sales as management noted headwinds in its drive to build up its artificial intelligence business. The company forecasted Q3 revenue in the range of $924 million to $925 million, up 14% year over year, which is slower growth compared to Q2’s 20% increase.
Dischler’s buy at this time suggests he believes the stock will rebound over time.
Robert Izquierdo has positions in HubSpot. The Motley Fool has positions in and recommends HubSpot. The Motley Fool has a disclosure policy.
Boston, Massachusetts--(Newsfile Corp. - August 10, 2026) - Block & Leviton is investigating HubSpot (NYSE: HUBS) for potential securities law violations. Investors who have lost money in their HubSpot investment should contact the firm to learn more about how they might recover those losses. For more details, visit https://blockleviton.com/cases/hubs.
What is this all about?
Block & Leviton is investigating whether HubSpot, Inc. and certain of its executives violated federal securities laws. On May 7, 2026, when discussing its first-quarter results, HubSpot's management attributed a slow start in April largely to the company's own product, pricing, and go-to-market changes, and guided investors to expect roughly 9,000 to 10,000 net customer additions per quarter and net revenue retention to expand by 1 to 2 points. On August 5, 2026, HubSpot reported second-quarter results that beat revenue and earnings expectations but cut forward guidance and sharply reset those key metrics - lowering the net-adds outlook to 5,000 to 6,000 and net revenue retention to "roughly flat" - while management pointed to increased budget sensitivity, longer sales cycles, and softening customer demand. The investigation concerns whether the company's earlier statements adequately disclosed the demand weakness that was already emerging. HubSpot shares fell approximately 20% following the August announcement.
Who is eligible?
Anyone who purchased HubSpot common stock and has seen their shares fall may be eligible, whether or not they have sold their investment. Investors should contact Block & Leviton to learn more.
What is Block & Leviton doing?
Block & Leviton is investigating whether the Company committed securities law violations and may file an action to attempt to recover losses on behalf of investors who have lost money.
What should you do next?
If you've lost money on your investment, you should contact Block & Leviton to learn more via our case website, by email at [email protected], or by phone at (888) 256-2510.
Whistleblower?
If you have non-public information about HubSpot, you should consider assisting in our investigation or working with our attorneys to file a report with the Securities Exchange Commission under their whistleblower program. Whistleblowers who provide original information to the SEC may receive rewards of up to 30% of any successful recovery. For more information, contact Block & Leviton at [email protected] or by phone at (888) 256-2510.
Why should you contact Block & Leviton?
Block & Leviton is widely regarded as one of the leading securities class action firms in the country. Our attorneys have recovered billions of dollars for defrauded investors and are dedicated to obtaining significant recoveries on behalf of our clients through active litigation in the federal courts across the country. Many of the nation's top institutional investors hire us to represent their interests. You can learn more about us at our website, www.blockleviton.com, call (888) 256-2510 or email [email protected] with any questions.
This notice may constitute attorney advertising.
CONTACT:
BLOCK & LEVITON LLP
260 Franklin St., Suite 1860
Boston, MA 02110
Phone: (888) 256-2510
Email: [email protected]
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/308895
Source: Block & Leviton LLP
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Assenagon Asset Management S.A. grew its holdings in HubSpot, Inc. (NYSE:HUBS – Free Report) by 135.3% during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 226,818 shares of the software maker’s stock after purchasing an additional 130,433 shares during the period. Assenagon Asset Management S.A. owned about 0.44% of HubSpot worth $41,397,000 at the end of the most recent quarter.
A number of other institutional investors have also made changes to their positions in HUBS. Price T Rowe Associates Inc. MD boosted its stake in shares of HubSpot by 36.5% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,581,922 shares of the software maker’s stock worth $1,838,727,000 after buying an additional 1,224,424 shares during the last quarter. Pictet Asset Management Holding SA increased its position in shares of HubSpot by 13.1% in the first quarter. Pictet Asset Management Holding SA now owns 2,188,191 shares of the software maker’s stock valued at $533,993,000 after acquiring an additional 252,604 shares during the last quarter. State Street Corp increased its position in shares of HubSpot by 3.7% in the fourth quarter. State Street Corp now owns 1,191,843 shares of the software maker’s stock valued at $478,287,000 after acquiring an additional 42,948 shares during the last quarter. AQR Capital Management LLC raised its holdings in HubSpot by 117.6% during the fourth quarter. AQR Capital Management LLC now owns 1,188,981 shares of the software maker’s stock worth $477,138,000 after acquiring an additional 642,545 shares in the last quarter. Finally, Geode Capital Management LLC raised its holdings in HubSpot by 1.5% during the fourth quarter. Geode Capital Management LLC now owns 971,712 shares of the software maker’s stock worth $388,917,000 after acquiring an additional 14,159 shares in the last quarter. Institutional investors own 90.39% of the company’s stock.
Insider Activity In related news, Director Lorrie M. Norrington purchased 1,313 shares of the firm’s stock in a transaction that occurred on Monday, May 11th. The shares were acquired at an average price of $190.42 per share, for a total transaction of $250,021.46. Following the purchase, the director owned 2,838 shares in the company, valued at approximately $540,411.96. This represents a 86.10% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Brian Halligan sold 8,500 shares of the stock in a transaction dated Tuesday, July 21st. The shares were sold at an average price of $221.09, for a total transaction of $1,879,265.00. Following the completion of the transaction, the director directly owned 85,000 shares in the company, valued at approximately $18,792,650. This represents a 9.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders purchased 14,063 shares of company stock valued at $2,585,781 and sold 26,202 shares valued at $5,481,959. 3.70% of the stock is owned by company insiders.
Key Stories Impacting HubSpot Here are the key news stories impacting HubSpot this week:
Positive Sentiment: HubSpot’s second-quarter results exceeded expectations: adjusted EPS was $3.26 versus the $3.02 consensus, while revenue reached $911.7 million, up 19.8% year over year and ahead of estimates. Customer additions, subscription growth and demand for AI-powered CRM tools supported the quarter. HubSpot Q2 Earnings Beat Estimates Positive Sentiment: KeyCorp retained an “overweight” rating with a $285 target, and BTIG maintained a “buy” rating with a $250 target. These analysts see substantial upside if HubSpot converts its AI investments into sustained growth and margin expansion. Neutral Sentiment: Management is expanding AI product trials and lowering entry prices to accelerate adoption. The initiatives could strengthen long-term demand, but longer sales cycles and tighter customer software budgets are creating near-term pressure. HUBS Q2 Earnings Call Highlights Neutral Sentiment: Jerry Dischler, an experienced AI and digital advertising executive, joined HubSpot’s board, potentially adding strategic expertise as the company develops its AI platform. A director’s sale of 702 shares was relatively small but adds limited insider-selling noise. Negative Sentiment: Third-quarter revenue guidance of approximately $924 million-$925 million was below the $941.2 million analyst consensus. The shortfall overshadowed the earnings beat and fueled fears that HubSpot’s growth is slowing as customers delay or scrutinize technology purchases. HubSpot Guidance Report Negative Sentiment: Analysts including Stifel, TD Cowen and Piper Sandler downgraded or lowered price targets, citing slower net additions, execution risks and a transition from a premium growth valuation toward a more value-oriented profile. Negative Sentiment: Block & Leviton announced an investigation into possible securities-law violations following the sharp decline. The announcement creates headline and legal risk, although it does not establish wrongdoing by HubSpot. HubSpot Investigation Announcement HubSpot Stock Up 3.7% NYSE:HUBS opened at $209.96 on Friday. HubSpot, Inc. has a 12-month low of $169.63 and a 12-month high of $525.51. The firm has a market capitalization of $10.75 billion, a price-to-earnings ratio of 74.19, a P/E/G ratio of 2.29 and a beta of 1.19. The stock’s 50 day moving average price is $206.74 and its two-hundred day moving average price is $229.37.
HubSpot (NYSE:HUBS – Get Free Report) last issued its earnings results on Wednesday, August 5th. The software maker reported $3.26 EPS for the quarter, topping the consensus estimate of $3.02 by $0.24. The company had revenue of $911.74 million during the quarter, compared to the consensus estimate of $898.31 million. HubSpot had a return on equity of 8.66% and a net margin of 4.26%.The firm’s revenue for the quarter was up 19.8% compared to the same quarter last year. During the same period in the previous year, the company posted $2.19 EPS. HubSpot has set its FY 2026 guidance at 13.230-13.310 EPS and its Q3 2026 guidance at 3.250-3.270 EPS. Equities research analysts expect that HubSpot, Inc. will post 4.41 EPS for the current year.
Analysts Set New Price Targets Several research analysts recently commented on HUBS shares. William Blair cut HubSpot from an “outperform” rating to a “market perform” rating in a research report on Friday, May 8th. Canaccord Genuity Group dropped their price objective on HubSpot from $335.00 to $300.00 and set a “buy” rating on the stock in a research note on Thursday. Wall Street Zen downgraded HubSpot from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 4th. BTIG Research decreased their target price on shares of HubSpot from $300.00 to $250.00 and set a “buy” rating for the company in a research note on Thursday. Finally, Oppenheimer downgraded shares of HubSpot from an “outperform” rating to a “market perform” rating in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, fifteen have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $268.90.
Read Our Latest Report on HubSpot
HubSpot Company Profile (Free Report)
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.
Further Reading Five stocks we like better than HubSpot Quantum Earnings Week: Winners and Losers Are Finally Emerging Axon’s Post-Earnings Pullback May Be More About Valuation Than Growth Uber Stock Lags in 2026, But Cash Flow and AV Bets Fuel Upside AppLovin Stock Hits 52-Week Low as Analysts Trim Targets, Stay Bullish
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Docusign: Another Beat, Another Selloff—Why the Analysts Are WrongHubSpot NYSE: HUBS reported second-quarter 2026 revenue growth of 20% year over year on a reported basis, or 17% in constant currency, as the company navigated slower customer acquisition and greater budget scrutiny tied to the transition toward artificial intelligence products.
Chief Executive Officer Yamini Rangan said April began slowly and that the quarter did not develop as the company had expected. She attributed the performance to deliberate changes in product, pricing and go-to-market strategy, as well as a demand environment in which customers showed increased caution around technology budgets.
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MarketBeat Week in Review – 06/01 - 06/05“Customers adopting AI want proof of value before they commit and predictability in what it costs,” Rangan said. HubSpot introduced trials that allow customers to test agents and its AEO offering in their own environments, while also lowering certain entry prices, adding outcome-based pricing for several agents and providing spending controls.
Rangan said the moves were expected to extend buying cycles in the near term but were intended to lower adoption barriers and support longer-term AI usage. She added that the trial approach has been most effective with larger customers that can receive additional support from HubSpot teams and partners.
Customer Growth Misses Internal Expectations MongoDB Is the Latest SaaS Apocalypse Victim to Say "Not Today"HubSpot added 7,000 net new customers during the quarter, ending the period with more than 306,000 customers globally. The customer total grew 14% from a year earlier, but Chief Financial Officer Kate Bueker said the quarterly additions were below the company’s expectation of 9,000 to 10,000 net adds, primarily because of weaker conversion rates and increased buyer hesitation.
Domestic revenue increased 17% year over year. International revenue rose 23% on a reported basis and 18% in constant currency, accounting for 49% of total revenue. Subscription revenue grew 20%, while services and other revenue increased 8%.
Average subscription revenue per customer was $11,800, up 4% on a reported basis and 2% in constant currency. Customer dollar retention remained in the high 80% range, while net revenue retention was 102%, down one percentage point year over year. Bueker said expansion in seats and credits was offset by pressure from other upgrade motions as customers optimized budgets.
Management said prospects are involving larger buying committees, with more transactions requiring approval from chief executives, boards or private-equity firms. Rangan said larger opportunities are still closing and up-market win rates remain solid, but approvals are taking longer.
Deals worth more than $120,000 in annual recurring revenue increased 38% year over year. Meanwhile, 64% of new Professional and Enterprise customers adopted multiple product hubs, up three percentage points from the prior year.
AI Adoption and Product Expansion HubSpot highlighted increased adoption of its AI products. Data Agent had more than 16,000 activated customers, up 80% sequentially, while Prospecting Agent had nearly 17,000 activated customers, up 28%. Customer Agent reached more than 10,000 customers.
The company launched HubSpot AEO in April through Marketing Hub and as a standalone product. Since launch, 32% of Marketing Hub Professional and Enterprise customers have activated AEO, and nearly 16,000 customers activated standalone AEO trials during the quarter, according to Rangan.
More than 55% of HubSpot’s Professional and Enterprise customers now use either its agents or Breeze Assistant, Rangan said. Monthly agentic actions across the customer base have increased more than threefold since the beginning of the year. Breeze Assistant weekly active usage has doubled since the start of 2026.
HubSpot also launched Agent Builder and Agent Hub in July. Agent Builder enables customers to create custom agents and workflows connected to HubSpot CRM data and external systems, while Agent Hub provides a central management location for HubSpot-built, customer-built and partner-built agents. More than 2,700 customers had activated the products in beta, Rangan said.
Management said it is focusing on helping customers move beyond experimentation, particularly for customer-facing AI products. Rangan said customers often begin with internal uses, such as data enrichment and sales productivity, before adopting agents that directly interact with prospects or customers.
Profitability, Cash Flow and Capital Returns Non-GAAP operating margin was 20% in the second quarter, expanding three percentage points from a year earlier. GAAP operating margin was 5%, compared with a negative 3% margin in the prior-year period.
Non-GAAP net income totaled $165 million, or $3.26 per diluted share, representing year-over-year increases of 40% and 49%, respectively. GAAP net income was $43 million, or $0.86 per share.
The company generated $168 million in free cash flow, equal to 18% of revenue, and ended June with $1.4 billion in cash and marketable securities. It repurchased more than $500 million of stock under its existing $1 billion authorization during the quarter. The board authorized an additional repurchase program of up to $1 billion.
Bueker said HubSpot expects two percentage points of non-GAAP operating-margin expansion in 2026 and anticipates an additional two to three percentage points of expansion in 2027 as it applies AI internally and maintains discipline in headcount spending.
Third-Quarter and Full-Year Outlook For the third quarter, HubSpot expects reported revenue of $924 million to $925 million, representing 14% reported growth and 15% constant-currency growth. The company forecast non-GAAP operating income of $187 million to $188 million, or a 20% margin, and non-GAAP diluted earnings per share of $3.25 to $3.27.
For full-year 2026, HubSpot expects revenue of $3.678 billion to $3.686 billion, up 18% on a reported basis and 16% in constant currency. It maintained its forecast for non-GAAP operating income of $762 million to $766 million, representing a 21% margin, while projecting non-GAAP diluted earnings per share of $13.23 to $13.31.
The company expects the headwinds observed in the second quarter to continue through the remainder of the year. It projects quarterly net customer additions of approximately 5,000 to 6,000, low- to mid-single-digit constant-currency growth in average subscription revenue per customer, and roughly flat full-year net revenue retention.
Bueker said budget pressure appeared consistent through the second quarter and continued into July.
About HubSpot (NYSE:HUBS)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.
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Should You Invest $1,000 in HubSpot Right Now?Before you consider HubSpot, you'll want to hear this.
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HubSpot (HUBS +3.96%) added 7,000 net new customers in the second quarter. It had told investors to expect 9,000 to 10,000.
More consequentially, management then lowered the assumption it will run on for the rest of 2026, to 5,000 to 6,000 net additions a quarter.
That is the company marking down its own customer engine by about 40%, and the market treated it accordingly. Shares fell 19% on Thursday, the session after the report. At about $210, they sit roughly 60% below the 52-week high of $525.51.
The quarter itself was fine. Revenue rose 20% year over year to $911.7 million, or 17% in constant currency.
Non-GAAP (adjusted) operating income climbed 44% to $185.3 million, lifting the adjusted operating margin to 20.3% from 17% a year ago. And free cash flow reached $167.9 million, up from $116.2 million.
The business isn't in trouble. It just told investors it will add customers more slowly than it expected.
Image source: Getty Images.
A slower customer engine The arithmetic of the customer base is where the change lands. HubSpot ended June with 306,446 customers, up 14% year over year. Add 5,500 a quarter, the middle of the new range, and that base grows about 7% a year instead of the roughly 12% the old assumption implied.
Average subscription revenue per customer was $11,800 in the quarter, up 4% year over year as reported. Multiply the two forward and the revenue growth rate settles near 11% a year. That is the number I'd build the next three years on.
And that is a substantial step down from what the company is delivering now. Revenue growth was 20% in the second quarter. Guidance calls for 14% in the third. The full-year forecast of $3.678 billion to $3.686 billion works out to 18%.
The direction has been one way for three straight periods, and the customer reset extends it.
CEO Yamini Rangan told analysts the shortfall came from two things at once. HubSpot deliberately changed how it sells its artificial intelligence (AI) agents in April, adding trials and outcome-based pricing. Customers adopting AI, she said, "want proof of value before they commit and predictability in what it costs."
At the same time, the buying environment tightened. Rangan said deals are drawing larger buying committees and more often require approval from the C-suite or the board.
Those two causes point in different directions, which is why this matters more than one soft quarter would. Pricing changes the company chose can be unwound or repriced if they aren't working. But a slower software-buying environment isn't something management controls.
Where that leaves 2029 So take the 11% growth path seriously. Revenue goes from about $3.68 billion this year to roughly $5 billion in 2029.
Adjusted operating margin is guided at 21% for 2026, and the company's own longer-term target is 25%. Assume it gets there by 2029 and that works out to about $1.25 billion of adjusted operating income, against roughly $765 million this year.
Then there is the share count, which is doing more work here than it usually does. HubSpot repurchased $531.9 million of stock in the second quarter alone, and the board authorized up to $1 billion more on Aug. 3, over as long as 24 months.
On a company worth about $10.1 billion, that would retire a meaningful slice of the equity. And at these prices, each dollar buys more of it.
Put the three together and adjusted earnings per share likely lands around $21 to $25 in 2029 -- against guidance of $13.23 to $13.31 for this year.
Today's Change
(
3.96
%) $
8.02
Current Price
$
210.45
The stock's valuation is about 15 times that 2026 figure. Hold the same multiple and the range works out to roughly $315 to $375. Pay 18 times, which arguably isn't aggressive for a business growing revenue in the low teens with margins still widening, and it is $380 to $450.
Of course, the risk is that 5,000 to 6,000 turns out not to be the floor. Revenue per customer is growing just 4% a year, so the installed base isn't doing much to make up for slower customer additions.
Drop net additions to 4,000 and stall the margin at 23%, and 2029 earnings could look more like $19 a share.
Ultimately, even that case leaves the stock worth more than $210 three years out. So I think shares look attractive here.
Pre-Market Stock Futures: Futures are trading modestly higher as we get ready to wrap up the first full week of August trading. It was fun while it lasted, but at least on Thursday, the risk-on party took a break on a strong mid-day reversal, as lousy forward guidance from two top technology leaders, Sandisk Corporation (NASDAQ: SNDK | SNDK Price Prediction) and Western Digital (NASDAQ: WDC), and more Strait of Hormuz concerns with Iran, and the ongoing war took its toll on stocks. When the smoke cleared and the final bell rang, all four major indices were lower but had rallied off their lows of the day. The Dow Jones Industrial Average took the biggest hit, closing down 0.85% at 53,885, ending a five-day winning streak, while the small-cap Russell 2000, which is still the leading index for 2026, closed down 0.53 at 3,003. The S&P 5000 finished down 0.18% at 7,709, and the Nasdaq closed at 25,348, down just 0.06%. Next week could be pivotal for stocks and the bond market, as the consumer price index for July will be released on Wednesday, and the producer price index the following day. Any big jump in inflation will almost guarantee a 25-basis-point (1/4 of 1%) rate increase at the next Federal Reserve meeting in September. With 78% of the S&P 500 having reported second-quarter results, earnings news will start to slow.
Treasury Bonds: After a solid week for the bond market, the sellers returned on Thursday as rising oil prices once again fanned the inflation flames, and recent hawkish commentary from a variety of Fed governors provided a tailwind for the sellers. By the close, yields were higher across the entire Treasury curve, with the longer maturities posting the largest declines. The 30-year long bond closed at 5.21%, while the benchmark 10-year note was last seen at 4.67%.
Oil and Gas: Prices rose across the energy complex after Iran published a highly restrictive draft plan for the Strait of Hormuz, which was not well-received. When the final print hit the tape, Brent Crude closed the day up 4.44% at $82.98, while West Texas Intermediate closed higher by 3.30% at $77.71. Natural Gas closed the session at $2.64, down 1.79%.
Gold: The precious metals had a volatile day after jumping sharply higher in the morning. The prices pulled back in the afternoon despite all the factors favoring Gold and Silver returning to the table, such as higher oil prices, a return of inflation fears, and volatile geopolitical news. The last trade for Gold was posted at $4,246, basically unchanged on the day, while Silver was last seen at $61.49, down o.70%
Crypto: Cryptocurrencies traded in a mixed but relatively narrow range on Thursday. Bitcoin held steady above the $64,000 level as traders watched macroeconomic developments, the upcoming U.S. jobs report, and key regulatory deadlines, while major altcoins posted mixed results. At 8 AM EDT, Bitcoin traded at $64,835, while Ethereum traded at $1,915.
24/7 Wall St. reviews dozens of analyst research reports every day to identify fresh investment ideas for investors and traders alike. These daily analyst notes include recommendations on stocks to buy, sell, or avoid, as well as new coverage initiations. Important reminder: No single analyst report should ever be the sole basis for buying or selling a stock.
Here are some of the top Wall Street analyst upgrades, downgrades, and initiations seen on Friday, August 7, 2026.
Upgrades: Etsy (NYSE: ETSY) was upgraded to Overweight from Neutral at JPMorgan, which raised the target price to $100 from $85. Instacart (NASDAQ: CART) was upgraded to Neutral from Underperform at BNP Paribas, with a $56 target price. Roche Holding (OTC: RHHBY) was upgraded to Overweight from Equal Weight at Morgan Stanley, which lifted the price target for the shares to $63 from $46. Quanta Services (NYSE: PWR) was raised to Overweight from Sector Weight at KeyBanc, with an $807 target price. Space Exploration Technologies (NASDAQ: SPCX) was upgraded to Buy from Hold at Argus, with a $160 target price. Downgrades: HubSpot (NYSE: HUBS) was cut to Market Perform from Outperform at BMO Capital, which trimmed the target price for the shares to $215 from $230. JetBlue Airways Corporation (NASDAQ: JBLU) was downgraded to Sell from Neutral by Citigroup, which lowered the price target to $5.30 from $6.60. Roku (NASDAQ: ROKU) was downgraded to Neutral from Buy at Guggenheim, which lifted the target price for the stock to $160 from $145. Sonic Automotive (NYSE: SAH) was downgraded to Underweight from Equal Weight at Morgan Stanley, which has a $72 target price. Trade Desk (NASDAQ: TTD) was downgraded to Neutral from Outperform at Baird, which slashed thje price target for the stock to $9 from $27. Initiations: ADI Global Distribution (NYSE: ADIG) was initiated with a Neutral rating at JPMorgan, with a $25 target price. Baker Hughes (NYSE: BKR) was started with an Overweight rating at Morgan Stanley, which has a $70 target for the oilfield services giant. Resideo Technologies (NYSE: REZI) was resumed in coverage with a Neutral rating at JPMorgan, with a $30 target price. Sutro Biopharma (NASDAQ: STRO) was initiated with a Buy rating at Stifel, with a $48 target price.
Tower Semiconductor (NASDAQ: TSEM) was initiated with a Buy rating at Bank of America, which has a $367 target price objective. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Trade Desk didn't make the cut. Grab the names FREE today.
SummaryHubSpot cut 2026 revenue guidance and growth, citing AI spending caution and execution hiccups, but maintains a long-term AI-driven transformation strategy.We reduce 2026–2028 revenue estimates and lower the long-term fair value price target to $466, reflecting heightened execution and competitive risks.Despite the guidance cut, HUBS trades at undemanding multiples and a discount to peers, making it attractive at current levels, especially if the AI strategy succeeds.Execution risk is now more pronounced; next quarter’s results and Analyst Day in September are critical for reassessing the investment case. NicoElNino/iStock via Getty Images
Investment Thesis Update The company reported a disappointing outlook, cutting revenue guidance and growth for the full year 2026 and providing only 15% constant currency revenue growth guidance for 3Q 2026. This does not yet mean
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of HUBS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
There were high hopes that HubSpot (HUBS -21.83%) would report strong second-quarter 2026 financial results after the bell rang yesterday. With shares down more than 37% from the start of the year through the end of Wednesday's trading session, investors needed something to help the software stock pare back its 2026 decline. It didn't come to pass, though, as the stock is plunging today.
As of 11:00 a.m. ET, HubSpot shares are down 20.2%.
Image source: Getty Images.
Despite the company's strong performance, analysts are changing their tune Reporting Q2 2026 revenue of $912 million, HubSpot beat analysts' expectations of $898 million. Similarly, the company posted adjusted earnings per share (EPS) of $3.26 -- better than the $3.02 that analysts anticipated.
Today's Change
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But the company's strong performance was insufficient in analysts' eyes. In the wake of the company's report yesterday, several analysts downwardly revised their price targets on HubSpot stock this morning.
Piper Sandler downgraded HubSpot to neutral from overweight and cut its price target to $220 from $250. Barclays lowered its price target to $240 from $270. Bernstein downgraded the stock to market perform from outperform and reduced its price target to $220 from $381. According to Thefly.com, Piper Sandler based its actions on the recognition that HubSpot added only 7,000 net customers last quarter and expects to add 5,000 to 6,000 in the third quarter. Bernstein, on the other hand, has taken a more bearish view, believing that growth expectations have dwindled following the company's April revision of its go-to-market and pricing strategies.
Is now the time to load up on HubSpot stock? Analysts may have soured on HubSpot stock, but investors are better off placing greater weight on the company's recent performance. In Q2 2026, HubSpot grew free cash flow 44% year-over-year to $168 million, and it projects free cash flow of $750 million in fiscal 2026, a 26% year-over-year gain. Those with HubSpot stock on their radars may find that now's the right time to take a contrarian approach and pick up shares.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends HubSpot. The Motley Fool recommends Barclays Plc. The Motley Fool has a disclosure policy.
