HubSpot shares tumbled 19.67% in after-hours trading on Wednesday, following the release of the company’s second-quarter earnings report. The sharp decline erased a significant portion of the stock’s recent gains, as investors reacted to a weaker-than-expected outlook for the coming quarters.

While HubSpot reported Q2 revenue of $911.74 million, beating the consensus estimate of $898.3 million, and adjusted earnings per share of $3.26, above the $3.02 expected, the company’s forward guidance fell short of Wall Street expectations. For the third quarter, HubSpot anticipates adjusted EPS of $3.25 to $3.27, well below the FactSet consensus of $3.45, and revenue of $924 million to $925 million, compared to the $942.38 million estimate. Full-year 2026 revenue guidance was also lowered to a range of $3.678 billion to $3.686 billion, missing the consensus of $3.71 billion, despite an increase in the full-year EPS forecast.

The guidance miss reignited concerns over the sustainability of HubSpot’s growth amid its ongoing business transformation toward an agent-first go-to-market strategy. Bank of America has previously flagged significant execution risk associated with this shift, and Wells Fargo downgraded the stock to equalweight in July, slashing its price target from $300 to $225. The cautious institutional sentiment, combined with the disappointing outlook, overwhelmed the positive Q2 earnings beat and a newly authorized $1 billion share repurchase program, triggering the steep post-market sell-off.