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

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

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 Price Performance

Shares of HUBS stock traded down $10.99 during trading hours on Thursday, reaching $205.65. The company had a trading volume of 3,364,377 shares, compared to its average volume of 1,735,165. HubSpot has a 1-year low of $169.63 and a 1-year high of $409.31. The firm has a market cap of $10.25 billion, a price-to-earnings ratio of 72.67, a P/E/G ratio of 2.30 and a beta of 1.14. The company has a 50 day moving average of $233.82 and a 200 day moving average of $230.93.

More HubSpot News

Here are the key news stories impacting HubSpot this week:

• Positive Sentiment: HubSpot reported Q3 adjusted earnings of $3.81 per share, above the roughly $3.27 consensus, and revenue of $947.6 million versus estimates of $925.5 million. Revenue rose 17.1% year over year. HubSpot Q3 earnings results
• Neutral Sentiment: RBC kept its Outperform rating and Truist maintained Buy, though both lowered price targets—to $260 and $230, respectively. Barclays also cut its target to $222 while retaining Equal Weight, reflecting continued caution despite potential upside from current levels. RBC rating Truist rating Barclays rating
• Negative Sentiment: The main near-term concern is the Q4 outlook: reports say revenue guidance fell short of market expectations, while HubSpot navigates a “bumpy” shift toward outcome-based AI offerings. This raised concerns about the pace of growth despite the Q3 beat. Q4 guidance report AI transition outlook
• Negative Sentiment: Analyst sentiment also weakened. BTIG, Morgan Stanley, and KeyCorp downgraded the shares; Cantor Fitzgerald moved to Underweight and cut its target sharply to $170. Piper Sandler lowered its target to $200 and stayed Neutral. Cantor Fitzgerald rating Piper Sandler rating

Analyst Upgrades and Downgrades

Several research firms recently issued reports on HUBS. Capital One Financial cut HubSpot from an “overweight” rating to an “equal weight” rating and set a $206.00 price target on the stock. in a report on Thursday, August 6th. Zacks Research cut HubSpot from a “strong-buy” rating to a “hold” rating in a report on Wednesday, August 12th. Truist Financial cut their target price on shares of HubSpot from $275.00 to $230.00 and set a “buy” rating on the stock in a research report on Thursday. Wells Fargo & Company cut their target price on shares of HubSpot from $250.00 to $200.00 and set an “equal weight” rating on the stock in a research report on Thursday. Finally, Wolfe Research lowered shares of HubSpot from an “outperform” rating to a “peer perform” rating in a research note on Thursday, August 6th. Eight analysts have rated the stock with a Buy rating, twenty-three have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, HubSpot currently has an average rating of “Hold” and an average price target of $257.74.

Insiders Place Their Bets

In related news, Director Gerald Dischler acquired 925 shares of the company’s stock in a transaction that occurred on Monday, August 10th. The stock was acquired at an average price of $215.93 per share, for a total transaction of $199,735.25. Following the completion of the acquisition, the director owned 1,940 shares of the company’s stock, valued at $418,904.20. This trade represents a 91.13% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Brian Halligan sold 8,500 shares of the firm’s stock in a transaction dated Tuesday, October 20th. The stock was sold at an average price of $239.57, for a total value of $2,036,345.00. Following the transaction, the director owned 59,500 shares in the company, valued at approximately $14,254,415. This trade represents a 12.50% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 25,500 shares of company stock valued at $5,990,035. 3.70% of the stock is owned by insiders.

About HubSpot

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.