HubSpot Beats Q3 Estimates but Lowers Q4 Guidance

HubSpot Inc. reported third-quarter 2026 adjusted earnings per share of $3.81 and revenue of $947.6 million, both of which exceeded Wall Street estimates. Despite the beat, the company issued fourth-quarter guidance for customer commitment revenue growth of 12%, a decrease from the 17% growth seen in the third quarter.

Company leadership expects net new annual recurring revenue to decline year-over-year for the remainder of 2026. HubSpot attributed this slowdown to increased buying scrutiny and lower productivity following sales retraining conducted in the spring. To counter these headwinds, the company is shifting its focus toward up-market customers, with a potential recovery projected for 2027.

Wall Street analysts responded with mixed outlooks. Needham maintained a Buy rating and a $300 price target. However, other firms took a more cautious stance due to weak demand and competition from artificial intelligence startups in down-market segments. TD Cowen lowered its price target to $215, Wells Fargo reduced its target to $200, and KeyBanc Capital Markets Inc. downgraded the stock to Sector Weight. Cantor Fitzgerald downgraded the company to Underweight and lowered its price target to $170.