William Blair has reiterated an Outperform recommendation on HubSpot Inc (NYSE:HUBS), holding to a positive stance even as the shares remain under pressure. Market momentum indicators from InvestingPro show the stock's relative strength index (RSI) in levels that suggest oversold conditions.
HubSpot's stock has suffered a steep slide in recent months alongside many software companies, a move William Blair attributes in part to investor unease about how artificial intelligence will change the competitive dynamics in the sector. Over the trailing 12 months the share price has fallen 73.35% and is trading just 1% above its 52-week low of $207.20, according to InvestingPro data.
In its note, William Blair acknowledged that HubSpot produced solid quarterly results, but the firm warned that the market may require more convincing evidence to fully shake off concerns and reverse the recent price compression. Specifically, the analyst house highlighted two paths that could help restore investor confidence: a material reacceleration in growth, potentially back above 20%, or a significant acceleration in customer adoption of the company’s AI offerings.
On valuation, William Blair’s model places HubSpot at 2.2 times its 2027 revenue estimate and 10.6 times projected 2027 free cash flow. Those multiples compare with a cohort of 15%-20% growth peers that trade at 3.2 times 2027 revenue and 14.9 times 2027 free cash flow, indicating a discount for HubSpot relative to higher-growth software names.
Third-party analysis from InvestingPro’s Fair Value module flags the stock as currently undervalued and notes that the consensus analyst price target implies roughly 41% upside from current levels. The research service also offers a deeper Pro Research Report for subscribers that expands on these figures and the underlying assumptions.
Earnings snapshot
HubSpot reported fourth-quarter 2025 results that exceeded expectations on both the bottom and top lines. The company reported earnings per share of $3.10 versus a forecast of $2.99, and revenue of $846.7 million compared with a consensus projection of $830.61 million. Management issued an annual revenue outlook that came in above analyst estimates, a development that provided some support to investor sentiment.
During the accompanying earnings call, company commentary emphasized a strategic focus on artificial intelligence. Despite the beat and the upbeat revenue guide, the stock fell in regular trading hours before recovering modestly in after-hours trading.
Context and implications
The combination of recent outperformance on results and persistent share price weakness leaves a mixed picture. Analysts view the beats as evidence of execution, while the market appears to be waiting for clearer signs that growth and AI-driven monetization will accelerate materially.
For investors and market participants following enterprise software and AI adoption trends, the key signals to watch will be any sustained lift in revenue growth rates toward the levels William Blair cites and tangible pickup in AI-driven product uptake by customers.