HubSpot, Inc. HUBS reported strong first-quarter 2026 results, with earnings and revenues beating the Zacks Consensus Estimate. Non-GAAP earnings were $2.72 per share, up 52.8% year over year and above the consensus estimate of $2.47 by 10.1%. Revenues increased 23.4% year over year to $881 million and surpassed the consensus mark of $867 million by 1.6%.
Results benefited from solid enterprise traction, multi-hub adoption and growing monetization of AI offerings. The company ended the quarter with 299,458 customers, up 16% year over year, while average subscription revenue per customer rose 6% to $11,722.
HubSpot, Inc. Price, Consensus and EPS Surprise
HubSpot, Inc. price-consensus-eps-surprise-chart | HubSpot, Inc. Quote
HUBS Delivers Broad-Based Revenue Growth
Subscription revenues increased 23% year over year to $862.3 million, driven by healthy customer additions, stronger enterprise demand and continued pricing optimization. Professional services and other revenues climbed 22% to $18.7 million.
Management highlighted strong momentum among larger customers. Deals above $60,000 in annual recurring revenues (“ARR”) increased 37% year over year, while deals above $120,000 ARR surged 64%, reflecting improving traction in the upmarket segment.
HubSpot Expands AI Monetization Momentum
HubSpot continued to gain traction with its AI-powered platform initiatives. Management stated that active core seat users jumped 90% year over year, while more than 25% of Pro+ customers purchased additional core seats.
AI credit consumption also accelerated sharply during the quarter, rising 67% sequentially. Customer Agent accounted for 53% of credits consumed, followed by Prospecting Agent and Data Agent, indicating growing enterprise adoption of AI-driven workflows.
HUBS Margins Improve Despite Higher Spending
Gross profit rose to $735.3 million from $599 million in the year-ago quarter. GAAP operating income was $27.9 million against an operating loss of $27.5 million a year earlier.
Non-GAAP operating income increased to $156.8 million from $100.3 million in the prior-year quarter, with margin expanding 380 basis points year over year to 17.8%. Higher revenues and operating discipline helped offset increased investments in research, AI innovation and sales initiatives.
HubSpot Benefits From Multi-Hub Adoption
Management noted that customers increasingly prefer HubSpot as a unified customer platform integrating marketing, sales and service operations. During the quarter, 63% of new Pro+ customers adopted multiple hubs, up 3 percentage points year over year.
The installed base also showed deeper platform penetration. Approximately 42% of Pro+ customers by ARR now use four or more hubs, up 6 percentage points year over year. The company believes integrated customer data and AI-enabled workflows are becoming important competitive differentiators.
HUBS Generates Strong Cash Flow
HubSpot generated $198.8 million in operating cash flow during the quarter compared with $161.6 million in the year-ago period. Non-GAAP free cash flow increased to $153.7 million from $122.3 million a year ago.
The balance sheet remained healthy with cash, cash equivalents and investments totaling $1.8 billion at quarter-end. During the quarter, the company repurchased approximately $211 million worth of shares, with $789 million remaining under its authorized repurchase program.
HubSpot Raises Confidence With Outlook
For the second quarter of 2026, HubSpot expects revenues between $897 million and $898 million, representing 18% reported growth year over year. Non-GAAP earnings are projected in the range of $3.00-$3.02 per share.
For full-year 2026, management forecasts revenues between $3.70 billion and $3.708 billion, indicating 18% year-over-year growth. The company expects non-GAAP operating income between $762 million and $766 million and non-GAAP earnings of $13.04-$13.12 per share.
HubSpot’s expanding AI ecosystem, increasing enterprise adoption and strong multi-hub momentum continue to support durable growth. Although competitive pressure from larger software vendors remains a concern, improving profitability and rising AI monetization position the company well for sustained long-term expansion.
Zacks Rank
HUBS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Keysight Technologies, Inc. KEYS is scheduled to release second-quarter fiscal 2026 earnings on May 19. The Zacks Consensus Estimate for earnings is pegged at $2.33 per share, suggesting growth of 37.06% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 17.45%. The company delivered an average earnings surprise of 4.58% in the last four reported quarters.
Workday, Inc. WDAY is set to release first-quarter fiscal 2027 earnings on May 21. The Zacks Consensus Estimate for earnings is pegged at $2.49 per share, implying growth of 11.7% from the year-ago reported figure.
Workday has a long-term earnings growth expectation of 20.16%. The company delivered an average earnings surprise of 8.53% in the last four reported quarters.
Analog Devices, Inc. ADI is set to release second-quarter fiscal 2026 earnings on May 20. The Zacks Consensus Estimate for earnings is pegged at $2.88 per share, implying growth of 55.7% from the year-ago reported figure.
Analog Devices has a long-term earnings growth expectation of 21.89%. The company delivered an average earnings surprise of 6.11% in the last four reported quarters.
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