HubSpot Faces Worsening Headwinds, Morgan Stanley Says

12:00 PM EST, 11/05/2026 (MT Newswires) -- HubSpot (HUBS) is faced with worsening headwinds and a sharp Q4 growth deceleration, undermining 2027 stabilization thesis, Morgan Stanley said in a note Thursday after its Q3 results. "While valuation is undemanding & we remain constructive on the long-term oppty, limited visibility into a growth recovery & increasingly distant catalysts move us to the sidelines," it said. Late Wednesday, HubSpot reported Q3 adjusted EPS of $3.81 on revenue of $947.6 million. Analysts polled by FactSet expected $3.27 and $925.5 million respectively. The company said it expects Q4 adjusted EPS of $3.85 to $3.87 on revenue of $945 million to $947 million. Analysts expect $4.09 and $964.9 million respectively. The report said the strong Q3 print was overshadowed by weaker Q4 guidance. Also, 2026 net revenue retention is now expected to fall about 2 points year on year versus flat previously, and net-new annual recurring revenue is seen declining, reducing confidence in a 2027 recovery, the note said. Morgan Stanley downgraded the stock to equal-weight from overweight and cut its price target to $229 from $287. Price: 210.28, Change: -6.36, Percent Change: -2.94