HubSpot shares dropped 11.3% in a week even as second-quarter revenue rose 20% year over year to $911.7 million and non-GAAP earnings jumped 49% to $3.26 per share. Management warned that larger buying committees, longer sales cycles, and customer budget optimization will pressure net upgrade rates and slow customer additions through the rest of 2026. The company reported 306,446 total customers, up 14%, and average subscription revenue per customer of $11,800, up 4%, while deals above $120,000 in annual recurring revenue grew 38%. AI adoption accelerated, with Data Agent activated by more than 16,000 customers, up 80% sequentially, and Prospecting Agent nearing 17,000. HubSpot currently carries a Zacks Rank #3 (Hold) with a Value Score of C, Growth Score of A, Momentum Score of A, and VGM Score of A.
