HubSpot posts 23% revenue growth, turns GAAP profitable, and raises full-year guidance in Q1'26

HubSpot reported strong Q1'26 results with 23% revenue growth, expanded profit margins, and GAAP profitability for the first time. The company saw accelerating enterprise adoption and AI-driven revenue growth, with large-deal annual recurring revenue increasing between 37% and 64%. Management raised its full-year guidance and achieved 2027 margin targets a year early while reducing stock-based compensation as a share of revenue. Despite a recent 40% stock decline, HubSpot trades at 15 times forward non-GAAP earnings and 18% constant currency growth, making it an attractive buy according to the analyst.