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Why HubSpot (HUBS) Is Down 11.3% After Cutting Revenue Outlook Despite Strong Q2 Profit Turnaround

Simply Wall St · 2d ago
  • In early August 2026, HubSpot reported Q2 revenue of US$911.74 million and net income of US$43.34 million, turning last year’s loss into a profit and lifting EPS to US$0.86, while also completing a US$742.88 million buyback and appointing AI-focused former Google executive Jerry Dischler to its board.
  • Despite these strong operational results and growing AI adoption, management lowered forward revenue guidance amid softer demand and slower customer additions, raising fresh questions about the durability of HubSpot’s growth profile.
  • Next, we’ll examine how HubSpot’s reduced revenue guidance and slower customer additions may reshape its AI-first, multi-hub investment narrative.

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HubSpot Investment Narrative Recap

To own HubSpot, you need to believe its AI first, multi hub CRM can keep deepening customer relationships even as growth becomes harder to win. The key near term catalyst is whether AI agents and new hubs can offset softer demand and slower customer additions. The latest guidance cut makes that catalyst less certain and heightens the biggest risk right now that SMB and mid market customers keep delaying or downsizing new subscriptions.

Among the recent announcements, the appointment of former Google executive Jerry Dischler to HubSpot’s board looks especially relevant. His background building AI agents for customer service and sales fits directly with HubSpot’s push into AI powered workflows, where over half of higher tier customers already use its agents or Breeze Assistant. For investors focused on catalysts, board level AI expertise may help sharpen product priorities just as growth expectations are being reset.

Yet behind HubSpot’s improving profitability, investors should be aware that slower customer additions and a weakening SMB budget cycle may eventually...

Read the full narrative on HubSpot (it's free!)

HubSpot's narrative projects $5.1 billion revenue and $556.4 million earnings by 2029. This requires 15.6% yearly revenue growth and about a $456 million earnings increase from $100.3 million today.

Uncover how HubSpot's forecasts yield a $277.74 fair value, a 32% upside to its current price.

Exploring Other Perspectives

HUBS 1-Year Stock Price Chart
HUBS 1-Year Stock Price Chart

Before this results shock, the most optimistic analysts were banking on about US$5.3 billion of revenue and US$774 million of earnings by 2029, while also assuming HubSpot could overcome slower AI monetization if customers stayed inside bundled credits. These upbeat views contrast sharply with today’s softer demand signals and show how differently you and other shareholders might weigh the same risks as events unfold.

Explore 12 other fair value estimates on HubSpot - why the stock might be worth over 4x more than the current price!

Form Your Own Verdict

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.