Analysts turned cautious on HubSpot, Inc (NYSE:HUBS) after the company issued weaker-than-expected first-quarter and second-quarter guidance, with BofA Securities warning that HubSpot's shift toward an AI agent-focused sales strategy could create near-term execution risks.

BofA Securities Downgrades HubSpot

BofA Securities analyst Matt Bullock downgraded HubSpot from Buy to Underperform. He slashed his price forecast to $180 from $300 after the company introduced major changes to its pricing and go-to-market strategy.

Bullock said HubSpot is repositioning its sales model around AI agents, with sales representatives now expected to prioritize AI agents over traditional software products during customer conversations.

He noted that the company also introduced a new outcomes-based pricing model for AI agents in April.

While Bullock described the long-term strategy as sensible, he warned that simultaneously changing pricing, packaging, and go-to-market execution creates significant operational risk.

He expects investor sentiment to remain pressured until HubSpot proves the strategy can gain traction, which he believes could take several quarters.

Analyst Warns About Slower Growth

Bullock said HubSpot's first-quarter results showed new net annual recurring revenue growth slightly trailing constant-currency revenue growth, and he expects a similar pattern in the second quarter because the company spent a week in April retraining sales teams on the new strategy.

The analyst reduced his 2026 revenue estimates by $18 million to align with the lower end of management's guidance after previously projecting revenue $25 million above company forecasts.

He also said the company's guidance still assumes growth acceleration in the second half of 2026. Still, he now expects a more modest "beat-and-maintain" performance instead of the stronger "beat-and-raise" pattern investors previously anticipated.

AI Transition Raises Concerns About Sales Cycles

Bullock warned that HubSpot's pivot toward an "agent-first" sales motion could lengthen sales cycles and weaken the steady momentum historically seen in its core business.

He also questioned whether customers are ready for widespread adoption of AI agents, saying uncertainty around enterprise demand could pressure near-term sales productivity and make durable growth reacceleration harder to achieve.

HUBS Price Action: HubSpot shares were down 21.25% at $191.94 at the time of publication on Friday. The stock is trading near its 52-week low of $187.45, according to Benzinga Pro data.

Image via Shutterstock