HubSpot (NYSE:HUBS) Announces Earnings Results

Key Points

• HubSpot beat Q1 expectations with adjusted EPS of $2.72 versus $2.47 expected and revenue of $881 million versus $863.3 million expected. Revenue rose 23.4% year over year.
• The company raised guidance, now projecting Q2 2026 EPS of $3.00-$3.02 and full-year 2026 EPS of $13.04-$13.12, both above Wall Street estimates.
• Despite strong results, the stock fell sharply after the report, dropping about 19% as investors weighed near-term headwinds including slower Q2 starts, longer sales cycles, and packaging changes.

HubSpot (NYSE:HUBS - Get Free Report) issued its quarterly earnings results on Thursday. The software maker reported $2.72 EPS for the quarter, topping analysts' consensus estimates of $2.47 by $0.25, FiscalAI reports. The business had revenue of $881.00 million during the quarter, compared to analysts' expectations of $863.32 million. HubSpot had a return on equity of 5.66% and a net margin of 3.04%.The business's quarterly revenue was up 23.4% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.84 earnings per share. HubSpot updated its Q2 2026 guidance to 3.000-3.020 EPS and its FY 2026 guidance to 13.040-13.120 EPS.

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

• Q1 beat on growth and margins — revenue grew ~18% in constant currency (23% as-reported), non-GAAP operating margin expanded ~4 points to ~18%, and Q1 free cash flow was $154M with $211M of share repurchases, supporting a raised full‑year margin outlook.
• AI monetization is accelerating — active core‑seat users rose ~90% YoY, total credits consumed grew 67% QoQ, and adoption of agents (Prospecting ~14k, Data ~9k, Customer Agent ~9k+) plus outcome‑based pricing/trials is driving early revenue and usage growth.
• Upmarket and platform momentum remains strong — deals >$60k ARR grew 37% YoY and >$120k ARR grew 64% YoY, multi‑hub adoption and platform consolidation continue to rise, and total customers reached nearly 300,000 with ~10,800 net adds in the quarter.
• Near‑term headwinds to linearity and bookings cadence — April pricing/packaging changes, sales retraining and longer proof‑of‑value trials have slowed Q2 starts (Q2 guide implies ~16% constant‑currency growth) and may extend sales cycles; legacy Clearbit is a ~40 bps revenue headwind for 2026.

HubSpot Stock Down 19.2%

HubSpot stock traded down $46.85 during midday trading on Friday, reaching $196.87. 6,507,823 shares of the stock traded hands, compared to its average volume of 1,544,984. The stock's fifty day moving average is $243.61 and its 200-day moving average is $317.94. HubSpot has a 12 month low of $180.50 and a 12 month high of $682.57. The stock has a market cap of $10.13 billion, a P/E ratio of 103.07, a PEG ratio of 2.69 and a beta of 1.23.

Trending Headlines about HubSpot

Here are the key news stories impacting HubSpot this week:

• Positive Sentiment: HubSpot beat Q1 estimates, with EPS of $2.72 versus $2.47 expected and revenue of $881 million versus $863.3 million expected, while revenue rose 23.4% year over year. HubSpot Reports Strong Q1 2026 Results
• Positive Sentiment: The company also raised guidance, projecting Q2 EPS of $3.00-$3.02 and FY2026 EPS of $13.04-$13.12, both above analyst expectations, which supports the long-term growth thesis. HubSpot (HUBS) Q1 Earnings and Revenues Beat Estimates
• Positive Sentiment: Several firms still maintain bullish ratings despite cutting price targets, including JPMorgan, RBC, Wells Fargo, Mizuho, Morgan Stanley and Piper Sandler, signaling Wall Street still sees upside from current levels. Analyst price target updates

Wall Street Analyst Weigh In

A number of analysts have commented on the company. UBS Group reduced their price target on HubSpot from $260.00 to $250.00 and set a "buy" rating for the company in a research report on Friday. JPMorgan Chase & Co. dropped their price objective on HubSpot from $530.00 to $425.00 and set an "overweight" rating for the company in a research note on Friday. Citigroup lowered HubSpot from a "buy" rating to a "neutral" rating and dropped their price objective for the stock from $321.00 to $230.00 in a research note on Friday. Mizuho dropped their price objective on HubSpot from $300.00 to $260.00 and set an "outperform" rating for the company in a research note on Friday. Finally, Truist Financial dropped their price objective on HubSpot from $300.00 to $230.00 and set a "buy" rating for the company in a research note on Friday. Twenty-two research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $315.85.

Insider Buying and Selling

In other news, insider Erika Ashley Fisher sold 915 shares of the firm's stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $236.66, for a total value of $216,543.90. Following the completion of the sale, the insider directly owned 16,270 shares of the company's stock, valued at $3,850,458.20. This trade represents a 5.32% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Brian Halligan sold 8,500 shares of the firm's stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $262.75, for a total value of $2,233,375.00. Following the completion of the sale, the director directly owned 370,558 shares of the company's stock, valued at $97,364,114.50. The trade was a 2.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 25,968 shares of company stock valued at $6,453,082. 4.00% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On HubSpot

Institutional investors have recently modified their holdings of the stock. Turning Point Benefit Group Inc. purchased a new stake in shares of HubSpot in the third quarter worth approximately $25,000. Rakuten Securities Inc. raised its holdings in shares of HubSpot by 783.3% in the second quarter. Rakuten Securities Inc. now owns 53 shares of the software maker's stock worth $30,000 after buying an additional 47 shares during the period. Osterweis Capital Management Inc. purchased a new stake in shares of HubSpot in the second quarter worth approximately $34,000. Hollencrest Capital Management purchased a new stake in shares of HubSpot in the fourth quarter worth approximately $40,000. Finally, Sfam LLC purchased a new stake in shares of HubSpot in the fourth quarter worth approximately $56,000. 90.39% of the stock is owned by institutional investors.

About HubSpot

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

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

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 contact@marketbeat.com.