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HUBS Rides on Strong Customer Growth: Will the Uptrend Persist?
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Key Takeaways
HubSpot grew customers 16% year over year to 299,458 after adding 10,800 net new customers in Q1 2026.
HUBS saw larger ARR deals rise, more multi-Hub adoption and pricing changes support customer growth.
HubSpot expanded Breeze AI, with Core Seat users up 90% and over 25% of Pro customers buying more seats.
HubSpot, Inc. (HUBS - Free Report) is witnessing solid customer growth across its customer relationship management platform. The company added 10,800 net new customers during first-quarter 2026, increasing the total customer count 16% year over year to 299,458.
There are several factors driving this customer growth. Larger enterprises are increasingly adopting HubSpot to consolidate customer-facing operations. Deals above $60,000 in annual recurring revenues (“ARR”) increased 37% year over year, while deals above $120,000 ARR surged 64%, reflecting improving traction in the upmarket segment. Instead of buying only Marketing Hub, customers are purchasing multiple Hubs together.
63% of new Pro+ customers purchased multiple Hubs, up 3% year over year. Having one unified connected platform that combines marketing, sales and service data supports AI models with complete information and helps enterprises to streamline workflows and boost their competitive edge. Having one integrated platform instead of several disconnected tools also lowers the total cost of ownership and improves efficiency.
The company’s pricing optimization strategy, implemented in 2024, continues to support customer acquisition. This has lowered entry pricing and removed minimum seat requirements. HUBS strong partner ecosystem is another major client acquisition engine.
HubSpot’s AI strategy is increasingly contributing to customer engagement and monetization. The company continues to expand Breeze AI capabilities across its customer platform through AI assistants, agents and automation tools. Active Core Seat users increased 90% year over year during first-quarter 2026, while more than 25% of Pro+ customers purchased additional Core Seats.
How Are Competitors Faring?
In the CRM space, HubSpot faces competition from Salesforce, Inc. (CRM - Free Report) , one of the world’s leading Customer Relationship Management companies. More than 150,000 customers leverage Salesforce solutions to drive results across sales, service and marketing operations. Salesforce’s on-demand model supports standardized deployments, frequent updates and lower ownership costs for customers. The company continues to benefit as enterprises modernize customer-facing processes and reduce vendor sprawl.
Microsoft Corporation (MSFT - Free Report) is also seeing healthy demand trends in the Productivity & Business Processes segment, which includes the Office and Dynamics CRM businesses. The company's artificial intelligence capabilities are translating into tangible commercial success, with Microsoft Copilot now deployed across more than 20 million paid Microsoft 365 Copilot seats and growing adoption across productivity, coding, and security applications. Microsoft 365 Copilot paid seats now exceed 20 million. The number of customers with more than 50,000 seats quadrupled year over year, with Accenture representing the largest Copilot win to date with over 740,000 seats. Bayer, Johnson & Johnson, Mercedes and Roche each committed to 90,000 or more seats.
HUBS’ Price Performance, Valuation and Estimates
HubSpot has declined 66.7% over the past year compared to the industry’s decline of 21.7%.
Image Source: Zacks Investment Research
Going by the price/book ratio, the company's shares currently trade at 4.66 book value, higher than 4.27 of the industry average.
Image Source: Zacks Investment Research
HUBS’ earnings estimates for 2026 and 2027 have improved over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
HUBS Rides on Strong Customer Growth: Will the Uptrend Persist?
Key Takeaways
HubSpot, Inc. (HUBS - Free Report) is witnessing solid customer growth across its customer relationship management platform. The company added 10,800 net new customers during first-quarter 2026, increasing the total customer count 16% year over year to 299,458.
There are several factors driving this customer growth. Larger enterprises are increasingly adopting HubSpot to consolidate customer-facing operations. Deals above $60,000 in annual recurring revenues (“ARR”) increased 37% year over year, while deals above $120,000 ARR surged 64%, reflecting improving traction in the upmarket segment. Instead of buying only Marketing Hub, customers are purchasing multiple Hubs together.
63% of new Pro+ customers purchased multiple Hubs, up 3% year over year. Having one unified connected platform that combines marketing, sales and service data supports AI models with complete information and helps enterprises to streamline workflows and boost their competitive edge. Having one integrated platform instead of several disconnected tools also lowers the total cost of ownership and improves efficiency.
The company’s pricing optimization strategy, implemented in 2024, continues to support customer acquisition. This has lowered entry pricing and removed minimum seat requirements. HUBS strong partner ecosystem is another major client acquisition engine.
HubSpot’s AI strategy is increasingly contributing to customer engagement and monetization. The company continues to expand Breeze AI capabilities across its customer platform through AI assistants, agents and automation tools. Active Core Seat users increased 90% year over year during first-quarter 2026, while more than 25% of Pro+ customers purchased additional Core Seats.
How Are Competitors Faring?
In the CRM space, HubSpot faces competition from Salesforce, Inc. (CRM - Free Report) , one of the world’s leading Customer Relationship Management companies. More than 150,000 customers leverage Salesforce solutions to drive results across sales, service and marketing operations. Salesforce’s on-demand model supports standardized deployments, frequent updates and lower ownership costs for customers. The company continues to benefit as enterprises modernize customer-facing processes and reduce vendor sprawl.
Microsoft Corporation (MSFT - Free Report) is also seeing healthy demand trends in the Productivity & Business Processes segment, which includes the Office and Dynamics CRM businesses. The company's artificial intelligence capabilities are translating into tangible commercial success, with Microsoft Copilot now deployed across more than 20 million paid Microsoft 365 Copilot seats and growing adoption across productivity, coding, and security applications. Microsoft 365 Copilot paid seats now exceed 20 million. The number of customers with more than 50,000 seats quadrupled year over year, with Accenture representing the largest Copilot win to date with over 740,000 seats. Bayer, Johnson & Johnson, Mercedes and Roche each committed to 90,000 or more seats.
HUBS’ Price Performance, Valuation and Estimates
HubSpot has declined 66.7% over the past year compared to the industry’s decline of 21.7%.
Image Source: Zacks Investment Research
Going by the price/book ratio, the company's shares currently trade at 4.66 book value, higher than 4.27 of the industry average.
Image Source: Zacks Investment Research
HUBS’ earnings estimates for 2026 and 2027 have improved over the past 60 days.
Image Source: Zacks Investment Research
HubSpot currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.