Salesforce Reports Strong Q4 Results, Stock Drops Amid AI Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 26 2026
0mins
Should l Buy HUBS?
Source: CNBC
- Strong Performance: Salesforce reported Q4 2026 revenue of $11.2 billion, a 12% year-over-year increase that exceeded market expectations of $11.18 billion, indicating robust growth potential driven by its Agentforce AI platform.
- Adjusted EPS Beat: The adjusted earnings per share reached $3.81, surpassing the consensus estimate by 77 cents and reflecting a 37% year-over-year increase, although overall margin performance was mixed with GAAP results falling short of expectations.
- Agentforce Platform Success: Since its launch, the Agentforce platform has closed over 29,000 deals, generating $800 million in annual recurring revenue, highlighting its significance in enterprise transformation, despite ongoing market skepticism about its long-term growth potential.
- Future Guidance: Salesforce anticipates Q1 FY 2027 revenue between $11.03 billion and $11.08 billion, with adjusted EPS projected at $3.11 to $3.13, slightly above market expectations, yet overall guidance remains below analyst forecasts, reflecting concerns about growth sustainability.
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Analyst Views on HUBS
Wall Street analysts forecast HUBS stock price to rise
27 Analyst Rating
24 Buy
3 Hold
0 Sell
Strong Buy
Current: 214.690
Low
450.00
Averages
582.08
High
800.00
Current: 214.690
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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- IBM's Earnings Fail to Boost Stock: Although IBM exceeded earnings and revenue expectations, its stock dropped 9% due to maintained guidance, indicating investor caution regarding its growth potential amidst a challenging market environment.
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- International Growth Outlook: Needham analysts predict that HubSpot's international and partner growth trajectory will continue into 2026, particularly driven by larger multihub deals in the EMEA region, enhancing the company's market position.
- Self-Service Launch: HubSpot has launched self-service as part of a multi-year sales and marketing efficiency strategy, which is expected to increase the usage of Breeze Agents and drive overall sales growth.
- AI Agent Adoption: Analysts noted that the usage of Breeze Agents is growing as expected, with these AI-powered agents designed to automate complex marketing, sales, and service workflows, thereby improving customer satisfaction and operational efficiency.
- Clear Financial Targets: HubSpot aims to achieve $3.7 billion in revenue by 2026, demonstrating confidence in future growth through AI adoption and a stock repurchase plan that signals strong market positioning.
See More
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See More
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- ServiceNow Stock Crash: ServiceNow shares plummeted 17% on Thursday, marking its worst day ever, as the company narrowly beat Wall Street estimates but cited Middle East conflict as a headwind for quarterly subscription revenue, raising concerns about future growth.
- IBM's Earnings Fail to Boost Stock: Although IBM exceeded earnings and revenue expectations, its stock dropped 9% due to maintained guidance, indicating investor caution regarding its growth potential amidst a challenging market environment.
- Software Sector Under Pressure: Salesforce and HubSpot each fell about 9%, while Adobe and Intuit dropped roughly 7%, and Oracle declined about 5%, reflecting widespread market fears that AI tools could disrupt the traditional cloud subscription model, leading to significant sector-wide declines.
- ETF Performance Decline: The iShares Expanded Tech-Software ETF (IGV) fell about 5% on Thursday and is down approximately 18% this year, illustrating investor pessimism regarding the software industry's outlook, particularly in the context of rapid advancements in AI technology.
See More
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- Disappointing Earnings Impact: ServiceNow's shares plummeted 17% on Thursday, marking its worst day ever, as geopolitical tensions in the Middle East were cited as a 'headwind' affecting quarterly subscription revenue, highlighting the negative impact of global conflicts on software performance.
- Rising Market Concerns: IBM beat earnings and revenue estimates but maintained its guidance, resulting in a 9% stock drop, indicating investor fears that AI tools could disrupt traditional cloud subscription models, putting pressure on the entire software sector.
- Overall Downward Trend: Salesforce and HubSpot each fell about 9%, while Adobe and Intuit dropped roughly 7%, and Oracle declined about 5%, with Workday sliding 10% and down over 45% year-to-date, reflecting widespread pessimism in the software stock market.
- ETF Decline: The iShares Expanded Tech-Software ETF (IGV) fell about 5% on Thursday and is down approximately 18% year-to-date, indicating a lack of investor confidence in the software industry's growth prospects, especially amid intensifying AI competition.
See More
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- Chip Stocks Surge: Since the March 30 bottom, the iShares Semiconductor ETF (SOXX) has surged over 30% in 12 trading days, indicating a strong recovery in the semiconductor sector and reflecting optimistic market expectations for semiconductor demand.
- Software Stocks Rebound: Over the last four trading days, the iShares Expanded Tech-Software Sector ETF (IGV) has jumped over 12%, marking the beginning of a rebound in software stocks, although their overall performance still lags behind chip stocks.
- Notable Individual Performers: In the software sector, Oracle (ORCL) has risen nearly 30% in four days, while other companies like Atlassian (TEAM) and Cloudflare (NET) have also posted double-digit gains, indicating a recovering market confidence in the software industry.
- Market Dynamics Shift: Despite the short-term rebound in software stocks, chip stocks continue to dominate the market, with Broadcom (AVGO) and Marvell (MRVL) up over 35% and 50%, respectively, suggesting that the recovery momentum in the semiconductor sector remains strong.
See More
Analysis of SaaS Companies' Prospects Amid AI Disruption
- Market Panic Intensifies: SaaS companies are experiencing severe market panic, as evidenced by the iShares Expanded Tech-Software Sector ETF (IGV) dropping over 30% in the past six months, compared to a mere 9% decline in the NASDAQ, indicating a significant loss of investor confidence in SaaS stocks.
- Chegg's Collapse: The online homework help platform Chegg has seen its stock plummet over 99% since its peak in 2021, as its core product has been replaced by free AI tools like ChatGPT, leading to a 40% year-over-year revenue decline, highlighting the tangible threat AI poses to certain SaaS companies.
- HubSpot and Constellation's Dilemma: Despite HubSpot and Constellation Software achieving all-time highs in revenue and free cash flow, their valuations have plummeted, with HubSpot trading at a mere 4 times sales and Constellation at 3 times, reflecting a pessimistic outlook from the market regarding their futures.
- AI as a Double-Edged Sword: While AI poses a threat to SaaS companies, some experts believe it could also serve as an advantage, particularly for firms like ServiceNow and Cadence, which may leverage AI effectively to gain a competitive edge in the evolving market landscape.
See More
Needham Optimistic About HubSpot's Future Growth
- International Growth Outlook: Needham analysts predict that HubSpot's international and partner growth trajectory will continue into 2026, particularly driven by larger multihub deals in the EMEA region, enhancing the company's market position.
- Self-Service Launch: HubSpot has launched self-service as part of a multi-year sales and marketing efficiency strategy, which is expected to increase the usage of Breeze Agents and drive overall sales growth.
- AI Agent Adoption: Analysts noted that the usage of Breeze Agents is growing as expected, with these AI-powered agents designed to automate complex marketing, sales, and service workflows, thereby improving customer satisfaction and operational efficiency.
- Clear Financial Targets: HubSpot aims to achieve $3.7 billion in revenue by 2026, demonstrating confidence in future growth through AI adoption and a stock repurchase plan that signals strong market positioning.
See More
