There's been a major selloff in HubSpot, Inc. (NYSE:HUBS) shares in the week since it released its first-quarter report, with the stock down 20% to US$197. It was a workmanlike result, with revenues of US$881m coming in 2.0% ahead of expectations, and statutory earnings per share of US$0.62, in line with analyst appraisals. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Taking into account the latest results, the current consensus from HubSpot's 34 analysts is for revenues of US$3.71b in 2026. This would reflect a notable 12% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 91% to US$3.74. Before this earnings report, the analysts had been forecasting revenues of US$3.70b and earnings per share (EPS) of US$2.91 in 2026. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the very substantial lift in earnings per share expectations following these results.

The average the analysts price target fell 15% to US$296, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values HubSpot at US$625 per share, while the most bearish prices it at US$180. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that HubSpot's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 17% growth on an annualised basis. This is compared to a historical growth rate of 22% over the past five years. Compare this to the 432 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 17% per year. So it's pretty clear that, while HubSpot's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around HubSpot's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of HubSpot's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on HubSpot. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple HubSpot analysts - going out to 2028, and you can see them free on our platform here.

We also provide an overview of the HubSpot Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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.