HubSpot (NYSE:HUBS) Announces Earnings Results, Beats Expectations By $0.54 EPS

HubSpot (NYSE:HUBS) issued its quarterly earnings data on Wednesday. The software maker reported $3.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.27 by $0.54, FiscalAI reports. HubSpot had a net margin of 4.26% and a return on equity of 8.66%. The company had revenue of $947.57 million for the quarter, compared to the consensus estimate of $925.50 million. During the same period last year, the firm posted $2.66 EPS. HubSpot’s revenue for the quarter was up 17.1% on a year-over-year basis.

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 Down 4.0%

Shares of NYSE HUBS traded down $9.01 during mid-day trading on Wednesday, hitting $217.16. 4,246,198 shares of the company were exchanged, compared to its average volume of 1,050,416. The stock has a 50 day simple moving average of $233.82 and a 200-day simple moving average of $230.93. HubSpot has a 1-year low of $169.63 and a 1-year high of $476.64. The firm has a market cap of $10.83 billion, a price-to-earnings ratio of 71.12, a price-to-earnings-growth ratio of 2.30 and a beta of 1.14.

Analyst Ratings Changes

A number of equities research analysts have recently commented on HUBS shares. Weiss Ratings raised shares of HubSpot from a “sell (d)” rating to a “sell (d+)” rating in a report on Friday, October 2nd. Barclays downgraded shares of HubSpot from an “overweight” rating to an “equal weight” rating and set a $240.00 target price for the company. in a research note on Monday, October 12th. Cantor Fitzgerald raised their price target on HubSpot from $200.00 to $265.00 and gave the stock a “neutral” rating in a report on Friday, October 30th. Bank of America restated an “underperform” rating and issued a $200.00 price target on shares of HubSpot in a research report on Thursday, August 6th. Finally, Canaccord Genuity Group dropped their price target on HubSpot from $335.00 to $300.00 and set a “buy” rating on the stock in a research report on Thursday, August 6th. Eleven investment analysts have rated the stock with a Buy rating, twenty-one have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $272.77.

Trending Headlines about HubSpot

Here are the key news stories impacting HubSpot this week:

• Positive Sentiment: Q3 adjusted earnings were $3.81 per share, above analyst estimates of about $3.27, and up from $2.66 a year earlier. Revenue of $947.57 million also topped estimates of $925.50 million. HubSpot Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: HubSpot raised its 2026 outlook, providing some support alongside the quarterly beat. HubSpot Q3 Earnings, Revenue Rise; Q4 Guidance Issued, 2026 Outlook Lifted
• Negative Sentiment: Q4 revenue guidance missed market expectations, weighing on the results’ otherwise positive headline numbers. Coverage also characterized the quarter as showing a growth slowdown, making the forward outlook a likely focus for investors. HubSpot Dips After Q4 Guidance Comes Up Short

Insider Buying and Selling at HubSpot

In other news, Director Gerald Dischler acquired 925 shares of the company’s stock in a transaction on Monday, August 10th. The shares were bought at an average cost of $215.93 per share, with a total value of $199,735.25. Following the purchase, the director owned 1,940 shares of the company’s stock, valued at $418,904.20. This represents a 91.13% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Brian Halligan sold 8,500 shares of the company’s stock in a transaction on Tuesday, October 20th. The stock was sold at an average price of $239.57, for a total transaction of $2,036,345.00. Following the transaction, the director owned 59,500 shares of the company’s stock, valued at approximately $14,254,415. The trade was a 12.50% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 25,500 shares of company stock worth $5,990,035 over the last three months. 3.70% of the stock is currently owned by corporate insiders.

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.