HubSpot, Inc. Q1 2026 Earnings Recap

Shares dropped 16.1% after earnings as investors reacted negatively to cautious outlook signals and potential margin pressures, despite solid revenue growth and AI adoption metrics.

Key Takeaways

• Revenue grew 18.2% year over year in constant currency, highlighting ongoing top-line expansion.
• Non-GAAP operating margin expanded by 4 points year over year to 17.8%, but market skepticism suggests concerns about sustaining profitability.
• Total customer count reached nearly 300,000, with 10,800 net additions in the quarter.
• Large deals ($60K+ ARR) grew 37% and those over $120K ARR grew 64% year over year, supporting upmarket momentum.
• AI-related usage metrics showed strong user adoption, with active core seat users up 90% year over year and credit consumption growing 67% quarter over quarter, yet investors appear wary of embedded risks in AI monetization ramp.