HubSpot’s Q2 results drew a negative market response, despite surpassing Wall Street’s revenue and non-GAAP earnings expectations. Management attributed the quarter’s underwhelming outcome to delayed customer purchases and softer net new customer growth, as businesses required more time and proof points before adopting HubSpot’s AI-driven offerings. CEO Yamini Rangan acknowledged that deliberate changes to pricing and product trials slowed conversions, stating, "April got off to a slow start and the quarter we expected did not fully materialize."
Is now the time to buy HUBS? Find out in our full research report (it’s free for active Edge members).
HubSpot (HUBS) Q2 CY2026 Highlights:
- Revenue: $911.7 million vs analyst estimates of $897.9 million (19.8% year-on-year growth, 1.5% beat)
- Adjusted EPS: $3.26 vs analyst estimates of $3.02 (8.1% beat)
- Adjusted Operating Income: $185.3 million vs analyst estimates of $173.8 million (20.3% margin, 6.7% beat)
- The company dropped its revenue guidance for the full year to $3.68 billion at the midpoint from $3.70 billion, a 0.6% decrease
- Management raised its full-year Adjusted EPS guidance to $13.27 at the midpoint, a 1.5% increase
- Operating Margin: 4.8%, up from -3.2% in the same quarter last year
- Customers: 306,446, up from 299,458 in the previous quarter
- Annual Recurring Revenue: $3.58 billion (20.1% year-on-year growth, beat)
- Billings: $929.7 million at quarter end, up 14.2% year on year
- Market Capitalization: $11 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From HubSpot’s Q2 Earnings Call
- Samad Samana (Jefferies) asked whether additional disruptive changes were made beyond pricing and trials and if further aggressive steps are needed. CEO Yamini Rangan clarified that the main headwinds were deliberate shifts to trials and pricing, emphasizing confidence in these long-term trade-offs.
- Rishi Jaluria (RBC) questioned if unpredictable AI token costs and competition from AI-native vendors are driving budget caution. Rangan explained that both new and existing customers now demand clear value and predictable costs, and highlighted HubSpot’s unified platform as a differentiator amid a competitive market.
- Brian Peterson (Raymond James) inquired about the differing adoption rates between large enterprises and SMBs. Rangan said upmarket momentum remained strong but deals took longer to close, while SMBs showed higher scrutiny but benefited from new trials and lower AI entry costs.
- Eamon Coughlin (Barclays) asked for details on paid versus trial AI usage. Rangan described leading indicators such as breadth and depth of usage, noting that trial-driven adoption is increasing, with paid consumption also trending up.
- Gabriela Borges (Goldman Sachs) sought clarity on when spending scrutiny might ease and a steady state emerge. Rangan said the industry is in an early AI adoption phase, expecting comfort and spending to improve as customers see more value and predictable outcomes.
Catalysts in Upcoming Quarters
In the coming quarters, our team will be monitoring (1) the pace of AI agent and Agent Builder adoption across customer segments, (2) the ability of new pricing and trial models to accelerate sales cycles and drive expansion, and (3) whether operating margin improvements persist even as AI investments continue. Success in translating early AI adoption into sustainable revenue and retention will also be a key signpost.
HubSpot currently trades at $218.52, down from $250.21 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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