HubSpot Inc. Reports Increase in Q3 Profits
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 05 2025
0mins
Should l Buy HUBS?
Source: NASDAQ.COM
Earnings Growth: HubSpot Inc. reported a profit of $16.53 million, or $0.31 per share, for Q3, up from $8.14 million, or $0.16 per share, in the same period last year.
Revenue Increase: The company's revenue rose by 20.9% to $809.51 million compared to $669.72 million in the previous year.
Adjusted Earnings: Excluding items, HubSpot's adjusted earnings were $140.25 million, or $2.66 per share, for the quarter.
Future Guidance: For the next quarter, HubSpot expects EPS between $2.97 - $2.99 and revenue between $828.0 - $830.0 million, with full-year EPS guidance of $9.60 - $9.62 and revenue of $3.113 - $3.115 billion.
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Analyst Views on HUBS
Wall Street analysts forecast HUBS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HUBS is 582.08 USD with a low forecast of 450.00 USD and a high forecast of 800.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
27 Analyst Rating
24 Buy
3 Hold
0 Sell
Strong Buy
Current: 223.490
Low
450.00
Averages
582.08
High
800.00
Current: 223.490
Low
450.00
Averages
582.08
High
800.00
About HUBS
HubSpot, Inc. provides a customer platform that helps businesses connect and grow better. The Company delivers seamless connection for customer-facing teams with a unified platform that includes artificial intelligence (AI)-powered engagement hubs, a Smart CRM, and a connected ecosystem with over 1,700 app marketplace integrations, a community network, and educational content. Its AI-powered engagement hubs include Marketing, Sales, Service, Operations, Content, and Commerce, as well as other tools and integrations that enable companies to attract, engage, and delight customers throughout the customer lifecycle. Its customer platform features a central database of lead and customer interactions, and integrated applications designed to help businesses attract visitors to their websites, convert visitors into leads, close leads into customers, transact with those customers, and delight them so they become promoters of those businesses. Breeze is its AI that powers the customer platform.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- AI Prototype Development: CNBC's team successfully created a project management dashboard similar to Monday.com using Anthropic's AI coding tool 'Claude Code' in under an hour, showcasing AI's potential to simplify the development process.
- Cost Efficiency Analysis: The development cost using AI tools ranges from $5 to $15, and as more data centers are built, this cost is expected to decrease further, making it more accessible for users.
- Investor Focus: Analysts suggest that companies like Atlassian, Adobe, and HubSpot face significant risks as their tools are not core to business operations, prompting investors to pay attention to the market performance of these 'nice-to-have' products.
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- Intensifying Industry Competition: With the launch of new tools like Anthropic's Claude Cowork, software companies face direct competition from AI technologies, and despite efforts from Salesforce and ServiceNow to maintain market share, their valuations have fallen by about 25%, indicating weakened market confidence in traditional software.
- Shift in Investor Sentiment: While some analysts believe companies like HubSpot remain robust, the overall market sentiment towards the software sector has turned pessimistic, resulting in significant stock price declines for many firms, reflecting fears of AI replacing traditional software solutions.
- Pressure to Adapt Technologically: Box CEO Levie emphasizes that software companies must rapidly embrace AI to remain competitive, and this pressure is driving innovation in products and services to meet growing customer demands, potentially reshaping the industry landscape in the long term.
See More
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- Severe Market Drawdown: The iShares Expanded Tech-Software Sector ETF (NYSE:IGV) has fallen for seven consecutive sessions, resulting in a 16% drop, marking the worst performance since the COVID panic in 2020, indicating immense pressure on the software sector.
- Widespread Negative Returns: Year to date, 100 out of 110 constituents in the software sector have posted negative returns, with over 20 stocks down more than 30%, reflecting growing concerns about the sustainability of software business models.
- Deteriorating Technical Indicators: A striking 97 of the IGV ETF's constituents are trading below their 200-day moving average, highlighting a broad breakdown in technical momentum, while the 14-day RSI has plummeted to 16, the lowest since September 2001, indicating extreme market pessimism.
- Pressure from Business Model Shifts: Macro strategists have noted that the rise of AI tools is replacing expensive SaaS platforms, leading to pricing pressures, slower renewals, and declining customer retention, prompting investors to rethink growth and value in the AI era.
See More
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- Memory Product Surge: Memory product manufacturers crucial to AI infrastructure have seen significant stock price increases, indicating strong market expectations for AI-related hardware demand, which could drive revenue growth for these companies.
- Market Divergence Trend: A clear divergence is emerging in the AI stock market, with performance differences between software companies and hardware manufacturers, potentially prompting investors to reassess their portfolios in search of more promising investment opportunities.
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