HubSpot falls on weak fourth quarter revenue guidance

Investing.com -- HubSpot Inc (NYSE: HUBS) reported third quarter results that exceeded analyst expectations but issued fourth quarter guidance that fell short of estimates, sending shares down 7.2% in after-hours trading Wednesday.

The customer platform company posted adjusted earnings per share of $3.81 on revenue of $947.6 million for the third quarter. Earnings beat the analyst consensus of $3.27 by $0.54, while revenue surpassed estimates of $925.31 million. Revenue increased 17% YoY from the same quarter last year. However, the company's fourth quarter revenue guidance of $945.0 million to $947.0 million came in below the analyst consensus of $964.9 million, with the midpoint of $946.0 million representing a shortfall of $18.9 million.

For the fourth quarter, HubSpot expects adjusted EPS of $3.85 to $3.87, below the consensus of $4.09. The midpoint of $3.86 represents a $0.23 miss versus analyst expectations. For the full year 2026, the company guided revenue to $3.685 billion to $3.687 billion, essentially in line with the consensus of $3.683 billion. Full year adjusted EPS guidance of $13.59 to $13.61 exceeded the consensus of $13.30.

"We are still in the early stages of a massive shift with AI, and we're transforming HubSpot to lead in the Outcomes Era," said Yamini Rangan, Chief Executive Officer at HubSpot. "AI is fundamentally changing software, from tools that help people do work to agents that do the work and deliver outcomes."

The company grew its customer base to 311,704 as of September 30, 2026, up 12% YoY. Average subscription revenue per customer reached $12,038 during the quarter, up 4% YoY. Subscription revenue was $930.2 million, up 18% YoY.

HubSpot generated $238.0 million in operating cash flow during the third quarter and repurchased $237.2 million of its common stock. The company's adjusted operating margin was 22.6%, compared to 19.9% in the prior year period.

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