HubSpot (NYSE:HUBS) Releases Quarterly Earnings Results, Beats Estimates By $0.24 EPS

Key Points

• HubSpot beat quarterly expectations: Adjusted EPS was $3.26 versus the $3.02 consensus, while revenue reached $911.7 million, up approximately 20% year over year and above estimates.
• AI adoption and profitability trends were strong: More than 55% of Pro Plus customers use HubSpot’s AI tools, while non-GAAP operating and free-cash-flow margins reached 20.3% and 18%, respectively. The board also authorized an additional $1 billion share-repurchase program.
• Growth guidance revealed near-term pressure: Customer additions missed expectations, net revenue retention fell to 102%, and third-quarter revenue guidance came in below analysts’ forecasts, despite an above-consensus full-year EPS outlook.

HubSpot (NYSE:HUBS - Get Free Report) announced 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 for the quarter, compared to the consensus estimate of $898.31 million. HubSpot had a return on equity of 5.66% and a net margin of 3.04%.HubSpot's 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 updated its FY 2026 guidance to 13.230-13.310 EPS and its Q3 2026 guidance to 3.250-3.270 EPS.

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

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

HubSpot Stock Performance

NYSE:HUBS traded up $2.25 during mid-day trading on Wednesday, hitting $251.14. The company had a trading volume of 4,031,521 shares, compared to its average volume of 1,510,371. HubSpot has a fifty-two week low of $169.63 and a fifty-two week high of $525.51. The firm has a market cap of $12.86 billion, a P/E ratio of 131.49, a P/E/G ratio of 2.72 and a beta of 1.19. The business's fifty day moving average is $206.87 and its two-hundred day moving average is $230.28.

Insider Buying and Selling

In related news, Director Lorrie M. Norrington purchased 1,313 shares of the stock in a transaction dated Monday, May 11th. The stock was bought at an average cost of $190.42 per share, with a total value of $250,021.46. Following the purchase, the director directly owned 2,838 shares in the company, valued at $540,411.96. The trade was a 86.10% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at this link. Also, CTO Dharmesh Shah purchased 10,000 shares of the business's stock in a transaction that occurred on Tuesday, May 12th. The stock was purchased at an average price of $181.37 per share, for a total transaction of $1,813,700.00. Following the completion of the transaction, the chief technology officer directly owned 1,295,400 shares in the company, valued at $234,946,698. This trade represents a 0.78% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders have purchased 14,063 shares of company stock valued at $2,585,781 and have sold 25,500 shares valued at $5,316,835. 3.70% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On HubSpot

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. National Bank of Canada FI grew its holdings in shares of 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 buying an additional 30 shares during the period. Rakuten Securities Inc. grew its stake in 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 acquiring an additional 47 shares during the period. Orion Porfolio Solutions LLC increased its holdings in shares of HubSpot by 2.9% in the second quarter. Orion Porfolio Solutions LLC now owns 1,784 shares of the software maker's stock worth $994,000 after acquiring an additional 51 shares in the last quarter. Elevation Point Wealth Partners LLC raised its position in shares of HubSpot by 3.3% during the fourth quarter. Elevation Point Wealth Partners LLC now owns 1,738 shares of the software maker's stock worth $697,000 after purchasing an additional 55 shares during the period. Finally, Turning Point Benefit Group Inc. acquired a new stake in shares of HubSpot during the third quarter worth about $25,000. 90.39% of the stock is owned by institutional investors.

Key Stories Impacting HubSpot

Here are the key news stories impacting HubSpot this week:

• Positive Sentiment: Q2 results exceeded expectations. HubSpot reported adjusted earnings of $3.26 per share, above the $3.02 consensus estimate, while revenue reached $911.7 million versus expectations of $898.3 million. Revenue increased approximately 20% year over year, and EPS rose from $2.19 in the prior-year quarter. HubSpot Reports Q2 2026 Results
• Positive Sentiment: Full-year profit guidance was raised relative to analyst expectations. HubSpot forecast fiscal 2026 EPS of $13.23-$13.31, well above the consensus estimate of $11.37. Full-year revenue guidance of approximately $3.7 billion was broadly in line with expectations. HubSpot Q2 Earnings and Revenues Beat Estimates
• Neutral Sentiment: An insider transaction appeared administrative. HubSpot’s chief legal officer sold 728 shares to cover tax withholding obligations. The transaction was not described as a discretionary reduction in ownership and is therefore unlikely to materially change the investment outlook. HubSpot Chief Legal Officer Sells Shares for Tax Withholding
• Negative Sentiment: Near-term revenue guidance disappointed. HubSpot projected third-quarter revenue of $924.0 million-$925.0 million, below the $941.2 million analyst consensus. Although projected EPS of $3.25-$3.27 exceeded estimates, investors appear more concerned about the pace of sales growth and the possibility of slowing demand. HubSpot Tumbles After Guidance Falls Short of Expectations

Wall Street Analyst Weigh In

HUBS has been the subject of a number of research reports. Jefferies Financial Group restated a "buy" rating and issued a $250.00 target price on shares of HubSpot in a research note on Friday, May 8th. Royal Bank Of Canada decreased their price target on shares of HubSpot from $400.00 to $350.00 and set an "outperform" rating on the stock in a research note on Friday, May 8th. Wells Fargo & Company reiterated an "equal weight" rating and issued a $225.00 price objective (down from $300.00) on shares of HubSpot in a research report on Monday, July 20th. Wall Street Zen downgraded HubSpot from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 4th. Finally, Mizuho decreased their price target on HubSpot from $300.00 to $260.00 and set an "outperform" rating on the stock in a report on Friday, May 8th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $307.86.

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.

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