We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
HubSpot Stock Fell 11.3% in a Week. Is the Weakness an Opportunity?
Read MoreHide Full Article
Key Takeaways
HubSpot delivered 20% revenue growth as customers rose 14% and non-GAAP EPS jumped 49%.
Enterprise deals above $120,000 in ARR grew 38%, while multi-hub adoption also advanced.
AI usage surged, but HubSpot expects slower customer additions and pressured upgrade rates in 2026.
HubSpot, Inc. (HUBS - Free Report) has come under pressure even as its second-quarter results showed continued revenue growth, customer expansion and rising AI adoption. The stock’s decline puts greater focus on whether the company can convert its AI investments and enterprise momentum into durable growth.
The near-term picture is less clear. Management expects slower customer additions, pressure on net upgrade rates and longer buying cycles through the rest of 2026, while pricing changes are designed to lower barriers to AI adoption.
HUBS Faces Slower Buying Decisions
HubSpot said larger buying committees, more C-suite and Board approvals and longer sales cycles weighed on second-quarter demand. Customers are also optimizing budgets as they assess the cost and value of AI, increasing downgrade pressure and limiting near-term visibility.
Management expects net upgrade rates to remain pressured in the second half of 2026 because of customer budget optimization. It also expects net new annual recurring revenue growth to trail constant-currency revenue growth for the year. These trends could temper the pace of expansion even as the company continues investing in AI.
HubSpot Still Delivers Strong Growth
HubSpot reported second-quarter revenue of $911.7 million, up 20% year over year, while subscription revenue rose 20%. Non-GAAP operating income increased 44% to $185.3 million, and non-GAAP earnings reached $3.26 per share, up 49% year over year.
The customer base reached 306,446, up 14% year over year, while average subscription revenue per customer rose 4% to $11,800. HubSpot also generated $222.8 million in operating cash flow and $167.9 million in non-GAAP free cash flow, giving it room to fund product development and capital returns.
HUBS Builds Its Enterprise Opportunity
Enterprise adoption remains a key part of the longer-term growth case. Deals above $120,000 in annual recurring revenue increased 38% year over year in the second quarter, showing continued demand from larger customers for a unified AI-powered customer platform.
Multi-hub adoption also advanced. About 64% of new Pro+ customers landed with multiple hubs, up 3 percentage points year over year. Salesforce, Inc. (CRM - Free Report) is similarly emphasizing agentic capabilities across its enterprise customer platform, underscoring the broader shift toward AI-enabled software consolidation.
HubSpot Expands AI Monetization
AI usage continued to build despite the pricing transition. Data Agent had more than 16,000 activated customers, up 80% sequentially, while Prospecting Agent had almost 17,000 and Customer Agent exceeded 10,000. In addition, 32% of Marketing Hub Pro+ customers activated AEO, and nearly 16,000 customers started a standalone AEO trial.
The key question is whether adoption becomes recurring revenue. HubSpot said credit consumption grew in the second quarter despite pricing changes, while management expects AI seats and credit usage to become incremental long-term revenue drivers. Microsoft Corporation (MSFT - Free Report) is also scaling AI through its cloud and productivity businesses, illustrating the broader industry focus on turning AI usage into monetized products.
HUBS Rank Signals a Mixed Setup
HubSpot currently carries a Zacks Rank #3 (Hold), with a Value Score of C, Growth Score of A, Momentum Score of A and VGM Score of A. The Rank reflects the near-term balance between growth opportunities and pressure on customer buying behavior. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Style Score framework treats Style Scores as complements to the Zacks Rank. The A Growth Score reflects favorable growth characteristics, while the A Momentum Score points to favorable price-timing characteristics under the methodology. The C Value Score indicates weaker value characteristics, and the A VGM Score reflects the combined value, growth and momentum profile. With a #3 Rank, the overall setup remains mixed rather than a clear signal that the decline alone changes the investment case.
View the Zacks #1 Rank List
Image: Shutterstock
HubSpot Stock Fell 11.3% in a Week. Is the Weakness an Opportunity?
Key Takeaways
HubSpot, Inc. (HUBS - Free Report) has come under pressure even as its second-quarter results showed continued revenue growth, customer expansion and rising AI adoption. The stock’s decline puts greater focus on whether the company can convert its AI investments and enterprise momentum into durable growth.
The near-term picture is less clear. Management expects slower customer additions, pressure on net upgrade rates and longer buying cycles through the rest of 2026, while pricing changes are designed to lower barriers to AI adoption.
HUBS Faces Slower Buying Decisions
HubSpot said larger buying committees, more C-suite and Board approvals and longer sales cycles weighed on second-quarter demand. Customers are also optimizing budgets as they assess the cost and value of AI, increasing downgrade pressure and limiting near-term visibility.
Management expects net upgrade rates to remain pressured in the second half of 2026 because of customer budget optimization. It also expects net new annual recurring revenue growth to trail constant-currency revenue growth for the year. These trends could temper the pace of expansion even as the company continues investing in AI.
HubSpot Still Delivers Strong Growth
HubSpot reported second-quarter revenue of $911.7 million, up 20% year over year, while subscription revenue rose 20%. Non-GAAP operating income increased 44% to $185.3 million, and non-GAAP earnings reached $3.26 per share, up 49% year over year.
HubSpot, Inc. Price, Consensus and EPS Surprise
HubSpot, Inc. price-consensus-eps-surprise-chart | HubSpot, Inc. Quote
The customer base reached 306,446, up 14% year over year, while average subscription revenue per customer rose 4% to $11,800. HubSpot also generated $222.8 million in operating cash flow and $167.9 million in non-GAAP free cash flow, giving it room to fund product development and capital returns.
HUBS Builds Its Enterprise Opportunity
Enterprise adoption remains a key part of the longer-term growth case. Deals above $120,000 in annual recurring revenue increased 38% year over year in the second quarter, showing continued demand from larger customers for a unified AI-powered customer platform.
Multi-hub adoption also advanced. About 64% of new Pro+ customers landed with multiple hubs, up 3 percentage points year over year. Salesforce, Inc. (CRM - Free Report) is similarly emphasizing agentic capabilities across its enterprise customer platform, underscoring the broader shift toward AI-enabled software consolidation.
HubSpot Expands AI Monetization
AI usage continued to build despite the pricing transition. Data Agent had more than 16,000 activated customers, up 80% sequentially, while Prospecting Agent had almost 17,000 and Customer Agent exceeded 10,000. In addition, 32% of Marketing Hub Pro+ customers activated AEO, and nearly 16,000 customers started a standalone AEO trial.
The key question is whether adoption becomes recurring revenue. HubSpot said credit consumption grew in the second quarter despite pricing changes, while management expects AI seats and credit usage to become incremental long-term revenue drivers. Microsoft Corporation (MSFT - Free Report) is also scaling AI through its cloud and productivity businesses, illustrating the broader industry focus on turning AI usage into monetized products.
HUBS Rank Signals a Mixed Setup
HubSpot currently carries a Zacks Rank #3 (Hold), with a Value Score of C, Growth Score of A, Momentum Score of A and VGM Score of A. The Rank reflects the near-term balance between growth opportunities and pressure on customer buying behavior. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Style Score framework treats Style Scores as complements to the Zacks Rank. The A Growth Score reflects favorable growth characteristics, while the A Momentum Score points to favorable price-timing characteristics under the methodology. The C Value Score indicates weaker value characteristics, and the A VGM Score reflects the combined value, growth and momentum profile. With a #3 Rank, the overall setup remains mixed rather than a clear signal that the decline alone changes the investment case.