HubSpot Q3 revenue beats estimates driven by subscription growth

Overview

• Customer platform software firm's Q3 revenue rose 17%, beating analyst expectations

• Adjusted EBIT for Q3 beat analyst expectations

• Company repurchased $237.2 mln of its common stock during the quarter

Outlook

• HubSpot expects Q4 revenue between $945 mln and $947 mln, up 12% year over year

• Company sees Q4 non-GAAP net income per share of $3.85 to $3.87

• HubSpot forecasts full-year 2026 revenue of $3.685 bln to $3.687 bln, up 18% year over year

Result Drivers

• SUBSCRIPTION REVENUE - Subscription revenue grew 18% in Q3, supporting overall revenue growth

• CUSTOMER BASE EXPANSION - Number of customers increased 12% year-over-year to 311,704

• HIGHER REVENUE PER CUSTOMER - Average subscription revenue per customer rose 4% in Q3

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 12 "strong buy" or "buy", 24 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy."

• Wall Street's median 12-month price target for HubSpot, Inc. is $259.22, about 14.6% above its November 3 closing price of $226.17

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)