• First quarter revenue was $881 million, and adjusted earnings per share were $2.72, both ahead of estimates.
• The company guided revenue between $897 million and $898 million for the second quarter, below the $902 million estimate.
• For the full year, revenue is expected between $3.700 billion and $3.708 billion, slightly ahead of the $3.698 billion estimate.

Shares of HubSpot (HUBS) are on track to open at a six-year low on Friday after the company reported first-quarter results.

While the results were largely ahead of expectations, the company said it expects a near-term impact on its net new annual recurring revenue from certain intentional pricing and packaging decisions, which it hopes will lead to growth over time. But that move by the company has increased skepticism among analysts. prompting multiple downgrades and significant price-target cuts.

At the time of writing, HUBS stock was down more than 24% in premarket trading.

Street Action On HUBS

William Blair, Jefferies, and Cantor Fitzgerald, were among firms that took action on the HUBS stock on Friday following the results.

According to TheFly, Jefferies analyst Samad Samana views the 2026 outlook as mixed after management lowered its forward revenue growth outlook due to headwinds from the April AI pricing model changes, one-time productivity losses, and longer sales cycles.

Samana said the stock is expected to remain under pressure until fundamentals inflect, and trimmed the price target to $250 from $325, implying an upside of only 2.6% as of Thursday’s close. The analyst continued to rate it a “Buy.”

HubSpot's path to a growth reacceleration "has become more uncertain," William Blair said in a research note, per TheFly. They lowered their rating to “Market Perform” from “Outperform.”

The firm believes a tougher path lies ahead to achieve near-term acceleration, noting that HubSpot's net new annual recurring revenue growth was slower than revenue growth in the first quarter (Q1), while the second quarter (Q2) saw a slow start after the company took about a week in April to retrain its sales reps.

Cantor Fitzgerald said the company's path forward "has too many bumps to confidently recommend investors put new money to work here," TheFly reported. The firm lowered its rating to “Neutral” from “Buy” and cut its price target by $125 to $200, implying an 18% downside.

The firm noted that HubSpot cited elongated sales cycles caused by several factors and believes most of these are "self-inflicted choices" made with a longer-term positive outcome expected. However, they are likely to weigh on HubSpot's growth over the next few quarters, per TheFly.

HUBS Q1 Earnings Fineprint

In Q1, revenue increased 23% to $881 million, beating the estimate of $863.34 million polled by Fiscal AI. The company’s adjusted earnings per share (EPS) were $2.72, ahead of the $2.47 per share estimate.

For Q2, the company guided revenue between $897 million and $898 million, below the $902 million estimate. It expects adjusted EPS of $3.00-$3.02, which is comparable to the $2.89 estimate.

For the full year, HubSpot forecasts revenue between $3.700 billion and $3.708 billion, slightly ahead of the $3.698 billion estimate. It guided adjusted EPS between $13.04 and $13.12, ahead of the $12.83-per-share estimate.

What Retail Traders Think Of HUBS Stock

On Stocktwits, retail sentiment about HUBS turned ‘extremely bullish’ from ‘neutral’ amid ‘extremely high’ message volumes over the last 24 hours.

Users on the platform were largely positive about the company’s Q1 print.

HUBS stock is down more than 39% so far this year and has lost over 62% in the past 12 months, underperforming the S&P 500.

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