Shares of HubSpot, Inc. (HUBS) advanced 3.4% in premarket trading on Thursday, February 12, 2026, reaching $216.40. This move represents a partial recovery following a significant 9.8% decline in the prior session, which closed at $209.33. The rebound comes as the company released its quarterly financial results and issued forward-looking guidance that captured investor attention.
Financial Performance and Strategic Initiatives
For the fourth quarter, HubSpot reported revenue of $846.7 million, marking a 20% year-over-year increase. On a constant-currency basis, which neutralizes foreign exchange fluctuations, growth was 18%. Subscription revenue, a core component, totaled $829.0 million. The company's non-GAAP net income reached $162.5 million, or $3.09 per diluted share, a substantial rise from $2.32 per share in the comparable period last year. A key operational metric, calculated billings, surged 27% to $971.4 million for the quarter, serving as a strong indicator of future revenue. HubSpot concluded its 2025 fiscal year with 288,706 total customers, a 16% increase from the previous year, and held $1.8 billion in cash and investments.
Forward Guidance and Capital Return Program
Management provided revenue guidance for the full 2026 fiscal year in the range of $3.69 billion to $3.70 billion. Non-GAAP earnings per share are projected to be between $12.38 and $12.46. For the immediate first quarter of 2026, the company anticipates revenue of $862 million to $863 million. In a significant move for shareholder returns, HubSpot's board of directors authorized a new share repurchase program permitting the buyback of up to $1.0 billion of its common stock over the next 24 months. These repurchases may be executed on the open market or through pre-arranged trading plans.
CEO Yamini Rangan characterized 2025 as a "transformative year," highlighting momentum in the company's platform and a strategic acceleration in serving larger enterprise clients. This upmarket focus is a central element of HubSpot's growth strategy but also places it squarely in competitive budget discussions within the customer relationship management (CRM) software sector.
Market Context and Analyst Sentiment
The update arrives during a period of heightened scrutiny for software valuations. A broader sell-off in cloud software stocks, as tracked by indices like the BVP Nasdaq Emerging Cloud Index, has been partly driven by investor concerns that the proliferation of generative AI and AI chatbots could potentially disrupt traditional software subscription models or pressure pricing. As a company with significant international revenue exposure, HubSpot's results also remain sensitive to currency exchange rate movements.
Initial analyst reaction to the guidance was interpreted as cautious. Wolfe Research analyst Alex Zukin noted the fiscal 2026 outlook "appears conservative," particularly in light of strong net new annual recurring revenue growth of 24% achieved in 2025. He also observed that existing consensus estimates were below the ranges provided by the company, suggesting potential for upward revisions if execution remains strong.
Investors are now closely monitoring several factors: the pace of customer additions, particularly among larger enterprises; the trajectory of billings growth; and any tangible execution of the newly authorized buyback program. The company emphasized the repurchase program is discretionary and can be modified or suspended, providing flexibility but no firm commitment. As the market opens at 9:30 a.m. Eastern Time, traders will assess whether the premarket gains hold amid broader market liquidity and continue to digest the implications of HubSpot's strategic positioning in an evolving software landscape.