The software sell-off has wiped 48% off HUBS stock, but AI-related growth prospects have eased concerns.
- The stock tumbled about 10% at the close on Wednesday, hitting $209.33, the lowest level since June 2020.
- HubSpot’s quarterly revenue rose 20% to $846.7 million, beating Wall Street expectations of $830.8 million.
- The company forecast fiscal 2026 revenue to be $3.69 billion to $3.70 billion, compared with expectations of $3.61 billion.
Shares of HubSpot jumped nearly 4% in overnight trading after the company forecast 2026 revenue and profit above Wall Street expectations, betting on strong artificial intelligence adoption and rising demand for its AI agents.
The stock tumbled about 10% on Wednesday at the close before the results, hitting $209.33, the lowest level since June 2020. However, retail traders and investors turned bullish on the company’s AI prospects after the fourth-quarter beat on both revenue and profit.
HubSpot shares have fallen nearly 48% so far this year and are likely on course for their worst year since 2022, following the broad sell-off in software stocks. On Monday, Bernstein said that HubSpot was the most impacted stock from the recent software sell-off.
AI Growth Prospects Soothe Investors
The recent sell-off in software stocks was driven by rising concerns that newly emerging, cheaper AI tools would erode demand for established software companies. However, HubSpot CEO Yamini Rangan said that what defined 2025 for the company was its AI momentum.
“We embed AI across the platform, we deliver agents that do real work, and we give teams tools like Breeze Assistant and LLM Connectors to turn their data into action,” Rangan said during a post-earnings call. “That strategy is resonating. AI natives like Lovable, Browserbase, and Squint.ai are choosing HubSpot as their platform to drive growth.”
Rangan revealed that HubSpot’s AI customer agent has seen resounding success. “More than 8,000 customers activated it last year and are seeing mid-60% resolution rates, driven by product innovation,” Rangan noted, adding that Prospecting Agent helps sales teams research accounts, personalize outreach, and engage prospects, and over 10,000 customers have activated it, up 57% quarter-over-quarter.
Earnings Snapshot
HubSpot’s quarterly revenue rose 20% to $846.7 million, beating Wall Street expectations of $830.8 million, according to data from Stocktwits. The company’s adjusted profit came in at $3.10 per share, compared with estimates of $2.99.
The company forecast fiscal 2026 revenue to be $3.69 billion to $3.70 billion, compared with expectations of $3.61 billion. HubSpot said adjusted profit for the year is estimated to be in the range of $12.38 to $12.46, above expectations of $11.46.
How Are Stocktwits Users Reacting?
Retail sentiment on HubSpot improved to ‘extremely bullish’ from ‘neutral’ a week ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.
A Stocktwits user said HUBS could reach $250. This implies a more than 19% upside to the last closing price of $209.33.
In the last 24 hours, retail message volumes on the stock jumped 1,086% on Stocktwits, and the ticker witnessed a 2% spike in followers on the platform.
Another user on the platform said that ongoing fears about software and AI are largely priced in at this point.
Shares of HubSpot have fallen nearly 75% in the last 12 months.
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