HubSpot's stock plunges 24% after weak growth forecast rattles investors
HubSpot’s stock fell sharply after its latest financial report disappointed investors. Shares dropped by more than 24% in premarket trading following the release of quarterly results. Several major banks have since adjusted their ratings and price targets for the company. The company reported first-quarter revenue of $881 million, beating analyst expectations by $18 million. Despite this, its full-year forecast did not fully account for the strong start, raising concerns about future growth.
Extended sales cycles and a temporary restructuring of the sales team have weighed on projections. HubSpot now expects earnings per share (EPS) between $3.00 and $3.02 for the second quarter of 2026. In response, Cantor Fitzgerald cut its price target from $325 to $200 and downgraded the stock to Neutral. William Blair also lowered its rating from Outperform to Market Perform. Morgan Stanley reduced its target from $405 to $350 but maintained an Overweight stance. HubSpot currently holds a market capitalisation of $12.55 billion, with a price-to-earnings ratio of 280.16.
The downgrades and falling share price reflect investor unease over HubSpot’s revised outlook. The company’s next steps will be closely watched as it navigates sales challenges and market expectations. For now, analysts remain divided on its long-term valuation.
