HubSpot Inc (NYSE:HUBS) shares surged more than 9% on Thursday after the customer relationship management software company reported stronger-than-expected fourth-quarter results and approved a $1 billion share buyback program.
The company reported Q4 earnings per share of $3.09, exceeding analysts’ estimate of $2.99, while revenue rose 20% year-over-year to $846.7 million, surpassing the $830.8 million consensus.
On a quarterly basis, EPS increased 16% and revenue grew 5%.
“2025 was a transformative year for HubSpot, defined by the momentum of our agentic customer platform and clear acceleration upmarket,” CEO Yamini Rangan said in a statement.
HubSpot also provided a robust outlook for fiscal 2026, raising its guidance above Wall Street expectations. The company expects revenue between $3.69 billion and $3.7 billion, versus the $3.61 billion estimated, with adjusted EPS of $12.38 to $12.46, above the consensus of $11.46. Non-GAAP operating income is projected at $736 million to $740 million, implying a 20% margin.
For the first quarter of 2026, HubSpot anticipates revenue of $862 million to $863 million, up 21% year-over-year, and adjusted EPS of $2.46–$2.48. Non-GAAP operating income is projected at $144 million to $145 million, representing a 17% margin.
Other key metrics included a non-GAAP operating margin of 22.6%, calculated billings of $971.4 million (up 27% year-over-year), and average subscription revenue per customer of $11,683, up 3% year-over-year. The company ended the quarter with $1.8 billion in cash and investments and generated $209.4 million in non-GAAP free cash flow in Q4.
HubSpot’s board authorized a share repurchase program of up to $1 billion, to be executed over the next 24 months. The company’s market capitalization is currently around $12 billion.