HUBS

October has brought another wave of layoffs across the tech industry.

HubSpot fundamentals are improving, with 20% revenue growth and strong cash flow, despite a 50% share price decline. HUBS is aggressively integrating AI into its platform, with increasing customer adoption of agentic AI tools and potential for future premium monetization. Management guides for slower 14% revenue growth due to AI trial changes and cautious demand but expects profitability improvements to offset top-line deceleration.

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HubSpot announced on Tuesday that it is cutting 7% of its workforce—roughly 660 employees—as it reorganizes around what it calls AI-driven customer outcomes.

HubSpot (NYSE:HUBS) is reducing its workforce by about 7%, or roughly 660 employees, while reaffirming its third-quarter and full-year 2026 guidance.  HubSpot disclosed the restructuring in an 8-K filing on Tuesday, expecting $65 million to $75 million in related charges, mostly in the fourth quarter of 2026, with role eliminations finishing by the end of the first quarter of 2027 and all payments made by the end of the second quarter of 2027.

A rebound in work management software is gathering pace, with Atlassian (NASDAQ:TEAM | TEAM Price Prediction) out in front and two of its closest rivals moving in the same direction. Shares of Atlassian trade at $189.

HubSpot trades at historic valuation lows post-‘SaaS-pocalypse,' with a forward P/E of 18.4x and forward P/S of 3x, well below historical averages. Bear fears of AI-driven CRM obsolescence appear overblown; small businesses lack the resources to DIY or trust new entrants over HubSpot's established platform. Record new business formation in 2026 and a strong TTM Rule of 40 reinforce a robust growth outlook, despite market-implied negative FCF growth.

The transaction involved 8,500 shares executed at $245.64 per share for a total value of ~$2.1 million. The shares traded were equal to 2% of the total equity holdings held before the transaction.

It's been just over a year since the iShares Software ETF peaked on September 22, 2025, and getting back to that level has been a work in progress. The ETF has since rallied 43%, bringing it back above both its 50- and 200-DMA, but it's still 9.4% below last September's peak.