Upcoming Q2 earnings put Breeze AI in focus for HubSpot

HubSpot (HUBS) heads into its second quarter 2026 earnings report on 5 August with investor attention firmly on the Breeze AI platform and related tools that are shaping expectations around customer engagement.

HubSpot’s recent 1 month share price return of 26.44% and 7 day gain of 15.85% to US$237.36 point to short term momentum building ahead of earnings. However, the 1 year total shareholder return is down 52.39% and the 5 year total shareholder return is down 63.98%, which keeps the longer term picture more cautious.

If Breeze AI has you rethinking where growth in software could come from next, it may be worth scanning other AI focused opportunities using the 33 AI small caps.

HubSpot now blends a well known CRM platform with a fresh Breeze AI story and a sharp short term rebound in the share price. The real test is whether that combination is already fully reflected in today’s valuation.

Most Popular Narrative: 28% Undervalued

At a last close of $237.36, HubSpot sits below the narrative fair value of $329.51, which frames Breeze AI’s importance ahead of Q2 earnings.

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 what sits behind that $329.51 figure? The narrative leans on steady revenue compounding, rising margins and ambitious earnings growth. Curious how those threads connect?

Result: Fair Value of $329.51 (UNDERVALUED)

However, HubSpot’s story could shift quickly if Breeze AI features fail to stand out or if AI competitors pressure pricing and weaken customer upsell.

Another View on HubSpot’s Valuation

The first narrative pegs HubSpot’s fair value at $329.51, yet the SWS DCF model points to a future cash flow value of $831.34 per share, which suggests the stock is trading well below that estimate at $237.36. How comfortable are you with a gap that wide?

For a closer look at how that figure is built up, including the assumptions behind those future cash flows, Look into how the SWS DCF model arrives at its fair value.

Next Steps

With HubSpot’s story pulling in both concerns and optimism, it makes sense to move quickly and inspect the data yourself. To weigh up the key issues and potential upsides in one place, review the 3 key rewards and 1 important warning sign

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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.