HubSpot (NYSE:HUBS) Posts Quarterly Earnings Results, Beats Expectations By $0.24 EPS

HubSpot (NYSE:HUBS) posted its earnings results on Wednesday. The software maker reported $3.26 earnings per share for the quarter, topping analysts’ consensus estimates of $3.02 by $0.24, FiscalAI reports. HubSpot had a net margin of 3.04% and a return on equity of 5.66%. The company had revenue of $911.74 million for the quarter, compared to analyst estimates of $898.31 million. During the same quarter in the prior year, the business posted $2.19 EPS. The firm’s revenue was up 19.8% compared to the same quarter last year. 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 Price Performance

Shares of NYSE HUBS traded up $2.25 during mid-day trading on Wednesday, reaching $251.14. 4,031,521 shares of the company’s stock were exchanged, compared to its average volume of 1,510,371. The firm has a 50-day moving average price of $206.87 and a two-hundred day moving average price of $230.28. The firm has a market capitalization of $12.86 billion, a price-to-earnings ratio of 131.49, a price-to-earnings-growth ratio of 2.72 and a beta of 1.19. HubSpot has a 52 week low of $169.63 and a 52 week high of $525.51.

Analyst Upgrades and Downgrades

A number of analysts have commented on the company. Zacks Research raised HubSpot from a “hold” rating to a “strong-buy” rating in a report on Monday, July 13th. Jefferies Financial Group restated a “buy” rating and issued a $250.00 target price on shares of HubSpot in a report on Friday, May 8th. UBS Group restated an “overweight” rating on shares of HubSpot in a report on Tuesday, July 28th. BMO Capital Markets cut their target price on HubSpot from $285.00 to $230.00 and set an “outperform” rating on the stock in a research report on Friday, May 8th. Finally, William Blair downgraded HubSpot from an “outperform” rating to a “market perform” rating in a report on Friday, May 8th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, HubSpot has an average rating of “Moderate Buy” and a consensus target price of $307.86.

Insider Activity at HubSpot

In related news, Director Lorrie M. Norrington acquired 1,313 shares of the stock in a transaction on Monday, May 11th. The shares were acquired at an average price of $190.42 per share, with a total value of $250,021.46. Following the completion of the transaction, the director owned 2,838 shares in the company, valued at approximately $540,411.96. The trade was a 86.10% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Yamini Rangan bought 2,750 shares of the company’s stock in a transaction on Tuesday, May 12th. The stock was bought at an average price of $189.84 per share, for a total transaction of $522,060.00. Following the completion of the purchase, the chief executive officer owned 102,982 shares of the company’s stock, valued at approximately $19,550,102.88. The trade was a 2.74% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders have purchased 14,063 shares of company stock worth $2,585,781 and have sold 25,500 shares worth $5,316,835. 3.70% of the stock is owned by company insiders.

Institutional Investors Weigh In On HubSpot

Several large investors have recently modified their holdings of the stock. Invesco Ltd. raised its holdings in shares of HubSpot by 128.7% in the 4th quarter. Invesco Ltd. now owns 296,856 shares of the software maker’s stock worth $119,129,000 after purchasing an additional 167,076 shares during the period. Corient Private Wealth LLC grew its holdings in HubSpot by 40.2% during the fourth quarter. Corient Private Wealth LLC now owns 2,954 shares of the software maker’s stock valued at $1,186,000 after purchasing an additional 847 shares during the period. Alberta Investment Management Corp purchased a new stake in HubSpot in the fourth quarter worth $1,124,000. Mercer Global Advisors Inc. ADV increased its position in HubSpot by 47.3% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 8,407 shares of the software maker’s stock worth $3,374,000 after buying an additional 2,698 shares during the last quarter. Finally, Vident Advisory LLC increased its position in HubSpot by 13.3% in the fourth quarter. Vident Advisory LLC now owns 12,398 shares of the software maker’s stock worth $4,975,000 after buying an additional 1,458 shares during the last quarter. Hedge funds and other institutional investors own 90.39% of the company’s stock.

Key Headlines 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

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.