HubSpot Plunges After Earnings Beat as Soft Q2 Outlook Rattles Investors

Overview

• HubSpot, which reported results late Thursday, beat first‑quarter estimates with revenue of $880.995 million up 23% and adjusted EPS of $2.72.
• Following Thursday’s release, shares fell about 20% to 24% in after‑hours and Friday premarket trading after the company guided Q2 revenue to $897 million to $898 million, a touch below forecasts.
• The company lifted its 2026 outlook to $3.700 billion to $3.708 billion in revenue and $13.04 to $13.12 in adjusted EPS, both above prior targets.
• Core metrics pointed to steady demand, with customers up 16% to 299,458, average subscription revenue per customer up 6% to $11,722, calculated billings at $912.3 million, and cash and investments at $1.8 billion, along with $211 million of buybacks and $789 million still authorized.
• CEO Yamini Rangan said new AI tools—Customer Agent, Prospecting Agent, and Data Agent—are driving customer outcomes, while several firms cut ratings or targets citing a brief April sales retraining and longer deal cycles that could weigh on near‑term growth.