HubSpot (NYSE:HUBS) Issues Earnings Results

HubSpot (NYSE:HUBS) released its earnings results on Wednesday. The software maker reported $3.81 earnings per share for the quarter, beating the consensus estimate of $3.27 by $0.54, FiscalAI reports. The firm had revenue of $947.57 million during the quarter, compared to analyst estimates of $925.50 million. HubSpot had a net margin of 5.95% and a return on equity of 11.73%. The firm’s revenue for the quarter was up 17.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.66 earnings per share.

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

• Q3 revenue grew 17% year over year, while non-GAAP operating margin expanded three points to 23%. Free cash flow was $188 million, or 20% of revenue.
• Customer budget sensitivity and longer buying cycles intensified, particularly among smaller customers and in larger, more complex deals. HubSpot expects Q4 net additions to be below Q3’s 5,300, full-year net new ARR to decline year over year, and 2026 net revenue retention to fall about two points year over year.
• HubSpot reported rising AI engagement: Pro+ customer use of agents reached 20%, monthly agentic actions increased fivefold since the start of the year, and credit consumption rose nearly 2.5 times. Management said trials are growing, but converting them to paid adoption requires more customer support and time.
• The company is piloting simpler seats-and-credits pricing, which has brought higher Pro+ customer volume and two to three times more credit usage in pilot regions, but lower average selling prices. HubSpot is expanding the pilot across EMEA for new customers before deciding on broader rollout.

HubSpot Stock Performance

Shares of HUBS traded down $3.85 during midday trading on Friday, hitting $201.11. 2,126,994 shares of the stock traded hands, compared to its average volume of 1,740,287. HubSpot has a 1-year low of $169.63 and a 1-year high of $406.94. The firm has a market capitalization of $10.03 billion, a PE ratio of 48.00, a price-to-earnings-growth ratio of 2.20 and a beta of 1.14. The business’s 50 day moving average price is $233.19 and its two-hundred day moving average price is $230.40.

Wall Street Analyst Weigh In

Several research firms have recently commented on HUBS. Wells Fargo & Company decreased their price target on shares of HubSpot from $250.00 to $200.00 and set an “equal weight” rating for the company in a report on Thursday. Oppenheimer lowered shares of HubSpot from an “outperform” rating to a “market perform” rating in a research note on Thursday, August 6th. Capital One Financial cut shares of HubSpot from an “overweight” rating to an “equal weight” rating and set a $206.00 target price on the stock. in a report on Thursday, August 6th. JPMorgan Chase & Co. cut their target price on shares of HubSpot from $240.00 to $224.00 and set a “neutral” rating on the stock in a report on Thursday. Finally, UBS Group restated a “hold” rating on shares of HubSpot in a research note on Thursday. Eight investment analysts have rated the stock with a Buy rating, twenty-three have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $259.48.

Trending Headlines about HubSpot

Here are the key news stories impacting HubSpot this week:

• Positive Sentiment: Third-quarter revenue rose 17% year over year to $947.6 million, adjusted EPS of $3.81 topped estimates, and HubSpot added 5,300 customers. The company also raised its full-year 2026 outlook. HubSpot: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Insider Erika Fisher sold 702 shares for about $160,000, reducing her holdings by 5.19%; she retained 12,829 shares, making the sale a relatively limited signal. HubSpot insider share sale
• Negative Sentiment: HubSpot forecast Q4 revenue of $945 million to $947 million, below market expectations. Reports point to AI-related demand headwinds and a transition toward selling outcome-based AI products as factors clouding near-term growth. HubSpot Q4 revenue outlook
• Negative Sentiment: Customers reportedly want clearer proof of value before buying, potentially lengthening sales decisions and raising questions about how quickly HubSpot can convert AI interest into revenue. HubSpot customers want proof of value
• Negative Sentiment: Several firms cut price targets or downgraded the stock following the results and guidance, including Cantor Fitzgerald, Morgan Stanley, KeyCorp, BTIG, UBS, JPMorgan and TD Cowen. The broad reset in expectations adds to selling pressure. HubSpot receives multiple downgrades

Insider Transactions at HubSpot

In related news, insider Erika Fisher sold 702 shares of the stock in a transaction dated Tuesday, November 3rd. The shares were sold at an average price of $227.72, for a total value of $159,859.44. Following the sale, the insider owned 12,829 shares of the company’s stock, valued at $2,921,419.88. This trade represents a 5.19% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Gerald Dischler acquired 925 shares of the business’s stock in a transaction that occurred on 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 completion of the transaction, the director owned 1,940 shares in the company, valued at $418,904.20. The trade was a 91.13% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders sold 26,202 shares of company stock worth $6,149,894. Insiders own 3.70% of the company’s stock.

HubSpot Company Profile

HubSpot, Inc is a cloud-based customer relationship management (CRM) platform provider serving businesses that want to attract, engage and retain customers. Its platform brings together tools for marketing, sales, customer service, content management, operations and commerce, helping organizations manage customer interactions across the customer lifecycle.

The company’s offerings include marketing automation, email marketing, lead generation, website and content management, sales pipeline and engagement tools, customer support and help-desk capabilities, reporting and analytics, and payment and commerce features.