HubSpot (NYSE:HUBS) Issues Quarterly Earnings Results

HubSpot (NYSE:HUBS) issued its earnings results on Wednesday. The software maker reported $3.26 EPS for the quarter, topping the consensus estimate of $3.02 by $0.24, FiscalAI reports. The business had revenue of $911.74 million during the quarter, compared to the consensus estimate of $898.31 million. HubSpot had a return on equity of 8.32% and a net margin of 4.26%.The firm’s revenue was up 19.8% compared to the same quarter last year. During the same quarter last year, the company earned $2.19 EPS. HubSpot updated its FY 2026 guidance to 13.230-13.310 EPS and its Q3 2026 guidance to 3.250-3.270 EPS.

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

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

HubSpot Trading Up 3.7%

Shares of NYSE HUBS traded up $7.53 during midday trading on Friday, hitting $209.96. 2,839,466 shares of the company’s stock were exchanged, compared to its average volume of 1,830,670. The business’s fifty day moving average price is $206.96 and its two-hundred day moving average price is $229.50. The company has a market cap of $10.75 billion, a price-to-earnings ratio of 74.19, a PEG ratio of 2.73 and a beta of 1.19. HubSpot has a 12-month low of $169.63 and a 12-month high of $525.51.

Insiders Place Their Bets

In related news, CTO Dharmesh Shah purchased 10,000 shares of the firm’s stock in a transaction dated Tuesday, May 12th. The shares were purchased at an average price of $181.37 per share, with a total value of $1,813,700.00. Following the acquisition, the chief technology officer directly owned 1,295,400 shares of the company’s stock, valued at approximately $234,946,698. This represents a 0.78% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Yamini Rangan acquired 2,750 shares of the stock in a transaction dated Tuesday, May 12th. The shares were bought at an average price of $189.84 per share, for a total transaction of $522,060.00. Following the transaction, the chief executive officer owned 102,982 shares in the company, valued at approximately $19,550,102.88. This represents a 2.74% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders bought 14,063 shares of company stock valued at $2,585,781 and sold 26,202 shares valued at $5,481,959. Company insiders own 3.70% of the company’s stock.

Institutional Investors Weigh In On HubSpot

A number of large investors have recently added to or reduced their stakes in HUBS. National Bank of Canada FI lifted its stake in HubSpot by 8.6% during the third quarter. National Bank of Canada FI now owns 379 shares of the software maker’s stock worth $177,000 after purchasing an additional 30 shares in the last quarter. Rakuten Securities Inc. grew its stake in shares of HubSpot by 783.3% in the second quarter. Rakuten Securities Inc. now owns 53 shares of the software maker’s stock valued at $30,000 after buying an additional 47 shares in the last quarter. Orion Porfolio Solutions LLC raised its holdings in shares of HubSpot by 2.9% in the 2nd 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 during the period. Elevation Point Wealth Partners LLC raised its holdings 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 buying an additional 55 shares during the period. Finally, Turning Point Benefit Group Inc. acquired a new position in HubSpot during the 3rd quarter worth about $25,000. Hedge funds and other institutional investors own 90.39% of the company’s stock.

HubSpot News Summary

Here are the key news stories impacting HubSpot this week:

• Positive Sentiment: HubSpot delivered a second-quarter earnings and revenue beat. Adjusted EPS was $3.26 versus the $3.02 consensus, while revenue rose approximately 20% year over year to $911.7 million, supported by subscription growth, customer additions and demand for AI-powered CRM products. HubSpot Reports Q2 2026 Results
• Positive Sentiment: Management’s third-quarter and full-year adjusted EPS outlook exceeded analyst expectations, and HubSpot outlined potential 2% to 3% non-GAAP operating-margin expansion in 2027. KeyCorp and BTIG maintained constructive ratings despite lowering their price targets.
• Neutral Sentiment: HubSpot is broadening AI product trials and lowering entry prices to accelerate adoption. The initiatives could improve long-term growth, but management said customers are taking longer to make purchasing decisions and are scrutinizing software budgets more closely. HUBS Q2 Earnings Call Highlights
• Neutral Sentiment: Jerry Dischler joined HubSpot’s board, adding experience in artificial intelligence and digital advertising. Separately, insider Erika Ashley Fisher sold 702 shares for approximately $165,000, a relatively small reduction that leaves her with 14,581 shares.
• Negative Sentiment: Third-quarter revenue guidance of $924 million to $925 million was below the $941.2 million consensus estimate. Analysts interpreted the outlook as evidence that growth is slowing, with AI-related investment, execution challenges and longer sales cycles weighing on near-term performance. HubSpot Guidance Report
• Negative Sentiment: Several analysts reduced targets or ratings after the earnings report. Stifel downgraded HUBS to “hold” and cut its target to $200, while TD Cowen lowered its target to $220 and also rated the shares “hold.” A law firm’s investigation into possible securities-law violations adds further headline risk, though it does not establish wrongdoing. HubSpot Investigation Announcement

Analysts Set New Price Targets

HUBS has been the subject of a number of analyst reports. KeyCorp cut their price objective on shares of HubSpot from $290.00 to $285.00 and set an “overweight” rating for the company in a research report on Thursday. Stephens lowered shares of HubSpot from an “overweight” rating to a “hold” rating and set a $251.00 target price on the stock. in a report on Thursday. BTIG Research lowered their target price on shares of HubSpot from $300.00 to $250.00 and set a “buy” rating on the stock in a research note on Thursday. Bank of America reissued an “underperform” rating and issued a $200.00 price target on shares of HubSpot in a report on Thursday. Finally, Zacks Research upgraded shares of HubSpot from a “hold” rating to a “strong-buy” rating in a research report on Monday, July 13th. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, fifteen have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, HubSpot has an average rating of “Hold” and an average target price of $269.13.

HubSpot Company Profile

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.