There were high hopes that HubSpot (HUBS -21.27%) would report strong second-quarter 2026 financial results after the bell rang yesterday. With shares down more than 37% from the start of the year through the end of Wednesday's trading session, investors needed something to help the software stock pare back its 2026 decline. It didn't come to pass, though, as the stock is plunging today.

As of 11:00 a.m. ET, HubSpot shares are down 20.2%.

Image source: Getty Images.

Despite the company's strong performance, analysts are changing their tune

Reporting Q2 2026 revenue of $912 million, HubSpot beat analysts' expectations of $898 million. Similarly, the company posted adjusted earnings per share (EPS) of $3.26 -- better than the $3.02 that analysts anticipated.

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NYSE: HUBS

HubSpot

Today's Change

(-21.27%) $-53.21

Current Price

$197.00

Key Data Points

Market Cap

$13BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day's Range

$185.05 - $205.59

52wk Range

$169.63 - $525.51

Volume

4M

Avg Vol

2M

Gross Margin

83.65%

But the company's strong performance was insufficient in analysts' eyes. In the wake of the company's report yesterday, several analysts downwardly revised their price targets on HubSpot stock this morning.

• Piper Sandler downgraded HubSpot to neutral from overweight and cut its price target to $220 from $250.
• Barclays lowered its price target to $240 from $270.
• Bernstein downgraded the stock to market perform from outperform and reduced its price target to $220 from $381.

According to Thefly.com, Piper Sandler based its actions on the recognition that HubSpot added only 7,000 net customers last quarter and expects to add 5,000 to 6,000 in the third quarter. Bernstein, on the other hand, has taken a more bearish view, believing that growth expectations have dwindled following the company's April revision of its go-to-market and pricing strategies.

Is now the time to load up on HubSpot stock?

Analysts may have soured on HubSpot stock, but investors are better off placing greater weight on the company's recent performance. In Q2 2026, HubSpot grew free cash flow 44% year-over-year to $168 million, and it projects free cash flow of $750 million in fiscal 2026, a 26% year-over-year gain. Those with HubSpot stock on their radars may find that now's the right time to take a contrarian approach and pick up shares.