HubSpot (HUBS) released second quarter 2026 results on 5 August, reporting revenue of US$911.74 million and net income of US$43.34 million, alongside new guidance for the third quarter and full year.

HubSpot's latest earnings and guidance arrived after a difficult stretch for investors, with the share price return declining 40.81% year to date and the 1 year total shareholder return falling 48.95%. The recent 5.14% 1 day and 11.23% 90 day share price returns suggest short term momentum is improving as the market reacts to the move into consistent profitability, new guidance, updates on AI initiatives, and the completed share buyback.

If you are watching how software and AI themes play out beyond HubSpot, this is a useful moment to widen your search and check out 74 profitable AI stocks that aren't just burning cash

Bulls argue HubSpot's shift into consistent earnings and AI push now support a rerating. Bears see a still rich software valuation after a steep share price fall. Which case do the latest numbers and guidance lean toward as you assess value next?

Most Popular Narrative: 31.3% Undervalued

According to the most followed HubSpot narrative, the fair value estimate of $329.51 sits well above the last close at $226.24, which frames the recent earnings and guidance in a very different light for long term holders.

HubSpot is a well-positioned, product-led CRM for SMBs with clear expansion levers. I don't believe companies will build their own HubSpot equivalents, which strengthens the durability of HubSpot’s SMB moat and reduces one potential downside. The investment case still depends on execution: protecting ARPU, delivering differentiated AI, and profitable scaling.

Want to see how this narrative gets to a higher fair value than today’s share price? It leans heavily on future earnings growth, margin improvement and AI driven monetization assumptions. Curious how those pieces fit together into the projected cash flows and terminal value.

Result: Fair Value of $329.51 (UNDERVALUED)

However, HubSpot’s narrative can shift quickly if AI tools become commoditised and ARPU weakens, or if larger CRM competitors squeeze its mid market opportunity.

Another View: HubSpot Looks Expensive On Earnings

The most followed HubSpot narrative leans on future cash flows, yet the current P/E of 76.8x points in a very different direction. That multiple is far above the US Software industry at 31.4x, the peer average at 55.6x, and even the fair ratio of 48.9x. For you, that gap raises a simple question: Is the upside case strong enough to justify paying such a premium today?

Next Steps

With mixed views on HubSpot throughout this article, it helps to move quickly and weigh the upside and downside yourself using the 3 key rewards and 2 important warning signs.

Looking for more investment ideas beyond HubSpot?

Do not stop at HubSpot. Fresh ideas now can influence how your portfolio looks a year from today, so keep turning over quality stones while others hesitate.

• Target potential mispricing by reviewing companies that combine quality fundamentals with attractive valuations through the 50 high quality undervalued stocks.
• Strengthen your income stream by assessing stocks that feature robust payouts inside the 11 dividend fortresses.
• Protect your downside by focusing on companies with resilient profiles using the 79 resilient stocks with low risk scores.

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.