Customer platform provider HubSpot (NYSE: HUBS) reported Q1 CY2026 results topping the market’s revenue expectations, with sales up 23.4% year on year to $881 million. The company expects next quarter’s revenue to be around $897.5 million, close to analysts’ estimates. Its non-GAAP profit of $2.72 per share was 10.2% above analysts’ consensus estimates.
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HubSpot (HUBS) Q1 CY2026 Highlights:
- Revenue: $881 million vs analyst estimates of $862.8 million (23.4% year-on-year growth, 2.1% beat)
- Adjusted EPS: $2.72 vs analyst estimates of $2.47 (10.2% beat)
- Adjusted Operating Income: $156.8 million vs analyst estimates of $145.2 million (17.8% margin, 8% beat)
- The company slightly lifted its revenue guidance for the full year to $3.70 billion at the midpoint from $3.70 billion
- Management raised its full-year Adjusted EPS guidance to $13.08 at the midpoint, a 5.3% increase
- Operating Margin: 3.2%, up from -3.8% in the same quarter last year
- Free Cash Flow Margin: 17.4%, down from 24.1% in the previous quarter
- Customers: 299,458
- Billings: $919.4 million at quarter end, up 19.9% year on year
- Market Capitalization: $12.11 billion
Company Overview
Born from the idea that traditional interruptive marketing was becoming less effective, HubSpot (NYSE: HUBS) provides an integrated platform that helps businesses attract, engage, and manage customer relationships through marketing, sales, service, and content management tools.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, HubSpot’s sales grew at an impressive 27.9% compounded annual growth rate over the last five years. Its growth beat the average software company and shows its offerings resonate with customers, a helpful starting point for our analysis.
Long-term growth is the most important, but within software, a half-decade historical view may miss new innovations or demand cycles. HubSpot’s annualized revenue growth of 20.1% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
This quarter, HubSpot reported robust year-on-year revenue growth of 23.4%, and its $881 million of revenue topped Wall Street estimates by 2.1%. Company management is currently guiding for a 18% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 16.4% over the next 12 months, a deceleration versus the last two years. Still, this projection is above average for the sector and indicates the market sees some success for its newer products and services.
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Billings
Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.
HubSpot’s billings punched in at $919.4 million in Q1, and over the last four quarters, its growth was impressive as it averaged 22.5% year-on-year increases. This performance aligned with its total sales growth, indicating robust customer demand. The high level of cash collected from customers also enhances liquidity and provides a solid foundation for future investments and growth. 
Customer Acquisition Efficiency
The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it’s the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability.
HubSpot is quite efficient at acquiring new customers, and its CAC payback period checked in at 30.4 months this quarter. The company’s rapid sales cycles stem from its strong brand reputation and self-serve model, where it can onboard many small customers with little to no oversight. These dynamics give HubSpot more resources to pursue new product initiatives so it can potentially move up market and serve enterprise clients, which can provide a second leg of growth. 
Key Takeaways from HubSpot’s Q1 Results
We were impressed by HubSpot’s optimistic EPS guidance for next quarter, which blew past analysts’ expectations. We were also glad its full-year EPS guidance trumped Wall Street’s estimates. On the other hand, its revenue guidance for next quarter was in line. Overall, we think this was still a solid quarter with some key areas of upside. The market seemed to be hoping for more, and the stock traded down 11.9% to $214.86 immediately after reporting.
So do we think HubSpot is an attractive buy at the current price? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
