HubSpot (HUBS) Q2 FY26 earnings call: guidance and Q&A

Were there additional disruptive choices beyond what's known that influenced results, and are more aggressive moves needed given the fast-moving AI environment?

Yamini explained that customers are cautious due to platform shift and budget pressure. Deliberate changes (trials, outcome-based pricing, lower entry points for agents) were made to build confidence in AI adoption, accepting near-term headwinds for long-term gain. She also detailed demand environment shifts (longer sales cycles, C-suite involvement) and HubSpot's response to meet customers where they are.

“We knew that evaluations will slow deal cycles, but we would provide higher confidence for customers as they adopt AI.”

asked by Samad Samana · answered by Yamini Rangan

Has 'token burn' impacted budgets and deployment decisions, and is market confusion from new AI-native vendors contributing to higher scrutiny?

Yamini noted a more cautious spending environment, with customers seeking 'value maxing' over 'token maxing'. She highlighted increased scrutiny, larger buying committees, and C-suite involvement for new customers. Competitively, HubSpot wins by offering an easy-to-use, cohesive platform that avoids 'agent sprawl' and provides context, CRM data, and governance, despite deals taking longer to close.

“They don't want like 10 agents from 10 different vendors because, one, the predictability of cost issue becomes even worse and the ability to see the outcomes in all in one place also becomes worse.”

asked by Rishi Jaluria · answered by Yamini Rangan

Can you clarify the demand environment across customer segments, specifically how large customers versus SMBs are adopting products?

Yamini explained that downmarket saw a more cautious buying environment with higher scrutiny. Upmarket experienced larger buying committees and more approvals (CEO, CFO, Board), leading to longer deal cycles, though win rates remained solid. She reiterated that upmarket business remains strong, with deals over $120,000 ARR growing 38%, driven by consolidation and clear AI roadmaps.

“In the prepared remarks, I shared that the number of $120,000 ARR deals grew by 38%, and that means strong interest, increasing interest in a number of conversations.”

asked by Brian Peterson · answered by Yamini Rangan

When will the demand environment improve, or is the current cautious spending the 'new normal'?

Yamini stated that the current moment is about customers navigating AI adoption and budgeting. She believes that as HubSpot provides comfort through predictable costs and clear outcomes, customers will gain confidence, leading to increased adoption. She acknowledged that previous technology transitions also started with experimentation and budget concerns, but did not provide a specific timeline for when the environment would 'get better'.

“I haven't lived through previous transitions many times. You start in a place where you want to understand how this new technology is going to work and how the budgets are going to work.”

asked by Gabriela Borges · answered by Yamini Rangan

What do HubSpot's AI agents need to achieve in the next two quarters to meet H2 numbers, and when will they start significantly impacting revenue?

Yamini explained that SMB AI adoption is still early. HubSpot's strategy focuses on agents for marketing, sales, and service, with customers typically starting with internal-facing agents (e.g., data agent, smart deal progression) before adopting customer-facing ones (e.g., prospecting, customer agent). The company is optimizing every step of the adoption journey for each agent to drive value and clarity, which will eventually lead to revenue impact as customers become more comfortable.

“What takes one more jump is really making sure that the outcomes of any agent that interacts directly with customers is solid.”

asked by Ivan Radojicic · answered by Yamini Rangan

What are customers spending on instead of HubSpot, and how long will the current budget scrutiny last?

Yamini acknowledged the past 'token maxing' phase and anticipates a 'sorting phase' where customers prioritize spend based on clear impact and ROI. She believes HubSpot will win in this environment due to its platform's connection to business outcomes and flexibility in using AI models cost-efficiently. She could not provide an exact timeline for when budget scrutiny would ease.

“I can't tell you an exact month or a quarter where that happens, but we are doing everything possible to be super clear in communicating the value that we deliver and the predictability of costs that we provide for customers that will help them through the shift.”

asked by Jackson Ader · answered by Yamini Rangan

Are customers asking for discounts on core hubs to fund AI spending, and what gives confidence in NRR remaining flat, especially regarding churn for non-AI adopters?

Kate explained that NRR components include strong customer dollar retention (high 80s), seat/credit expansion (offset by agent pricing/trials), and downgrade pressure from budget optimization. Yamini added that customers fund AI either by expanding from trials or by leveraging flexibility to swap seats for credits to manage their overall budget, indicating a flexible approach rather than direct core hub discounts.

“The other pattern that we see is having flexibility to be able to swap seats for credits and managing their budget, wanting to drive AI adoption, but managing the budget across seats and credits.”

asked by Sitikantha Panigrahi · answered by Yamini Rangan