HubSpot (HUBS) Reports Increased Revenue Guidance but Faces Continued Losses

HubSpot (HUBS) recently updated its earnings guidance, projecting Q3 2025 revenue between $785 million and $787 million alongside a year-over-year growth expectation of 17% for the full year 2025. Despite this promising outlook, the company reported an 8% decline in its stock price over the past week. This decline occurred as the broader market absorbed various earnings reports and anticipated tariff news, with major indices like the S&P 500 and Nasdaq Composite seeing gains. HubSpot's Q2 results showed improved revenue and narrower losses, which may not have been enough to counteract broader market concerns.

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HubSpot's recent revision of its earnings guidance signals an upbeat outlook, with projected Q3 2025 revenue between $785 million and $787 million. Despite this, the company has experienced an 8% decline in its stock price over the past week, as broader market conditions weigh heavily. However, in the past five years, HubSpot has achieved a total return of 92.44%, highlighting its strong longer-term performance. This should provide some context against the recent short-term price fluctuations.

Over the last year, HubSpot has underperformed compared to the US Software industry and the broader market. This suggests greater sensitivity to industry-specific challenges, although its long-term performance remains robust. The recent price decline stands in contrast to analyst expectations, which predict a price movement of nearly 49.6% from its current share price of US$492.62 towards the consensus price target of US$742.42.

Furthermore, the acquisition of frame.ai and integration of AI technologies are expected to enhance operational efficiency and customer engagement, potentially bolstering future revenue and earnings. However, execution risks associated with these strategic initiatives, alongside upcoming tariff news, could impact revenue and earnings forecasts if not managed effectively. Analysts agree that achieving anticipated earnings and revenue growth will be crucial in supporting the envisioned price target, which anticipates significant company growth by 2028.

Assess HubSpot's previous results with our detailed historical performance reports.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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