HubSpot (HUBS) will cut about 7% of its workforce under a restructuring plan its board approved on 1 October 2026. The company disclosed the plan on 6 October 2026. The same filing kept its 2026 guidance unchanged. Guidance is the company's own forecast for the year.
HubSpot shares closed 1.6% lower on 6 October 2026. It was a small move in a year when the stock more than halved.
What did HubSpot announce? HubSpot will cut about 7% of its staff, nearly 660 people, at a cost of $65 million to $75 million. It kept its own forecasts for the third quarter and for 2026 unchanged.
HubSpot expects to book most of the charges in the fourth quarter of 2026. It leaves them out of its adjusted (non-GAAP) results.
At the 6 October 2026 close, the shares traded at 16.4 times HubSpot's own 2026 forecast of adjusted earnings per share (EPS).
The stock is down 53.2% over 12 months. It trades below its average price of the past 50 and 200 trading days.
What HubSpot announced
HubSpot set out the plan in an 8-K filing, the form US companies use to report major events to the Securities and Exchange Commission. It was filed before the market opened on 6 October 2026. Chief Executive Yamini Rangan's note to staff puts the departures at nearly 660.
HubSpot estimates charges of $65 million to $75 million. HubSpot expects to book most of them in the fourth quarter of 2026. It expects to make most of the cash payments by 30 June 2027.
HubSpot says the plan creates "a flatter, faster organization" built around customer outcomes. In her note, Rangan states: "This is not driven by AI-related efficiencies." She adds that it is "not simply a cost-cutting exercise."
The filing also reaffirmed the guidance from HubSpot's 5 August 2026 results.
Non-GAAP figures are the company's adjusted measures. They leave out items such as stock-based pay and restructuring costs, which GAAP (US Generally Accepted Accounting Principles) figures include.
Third-quarter revenue guidance is $924.0 million to $925.0 million. For 2026 as a whole, HubSpot guided revenue of $3.678 billion to $3.686 billion. Its full-year forecast for non-GAAP earnings per share (EPS) is $13.23 to $13.31. HubSpot added that it "remains confident in achieving its longer-term operating margin targets" from its Analyst Day on 17 September 2026.
How HUBS stock reacted and where it trades now
Source: YX Insights
The shares rose 9.8% in the five sessions to 6 October 2026. The stock has fallen 53.2% over 12 months. Its 12-month low was $169.63 on 25 June 2026.
A moving average is the mean closing price over a set number of trading days. The price sits 6.0% below its 50-day moving average of $230.89. It sits 11.3% below its 200-day moving average of $244.77.
The Relative Strength Index (RSI) is a 0 to 100 gauge of recent gains against losses. Above 70 or below 30 marks a stretched move. The 14-day RSI reads 47.2, mid-range.
The volume profile shows how many shares traded at each price over the year. Its busiest band runs from $212.43 to $229.56. The price sits inside that band.
Source: YX Insights
Each candlestick is one trading day, with a thick body from the open to the close plus a thin line spanning the day's high and low. Green means it closed above its open, red below.
On 6 October 2026 the shares opened at $219.59 against a previous close of $220.61, traded between $215.13 and $222.86, then closed at $217.09 for a red candle.
What it means for the valuation
HubSpot's market value was $10.8 billion at the 6 October 2026 close. The charges equal 0.6% to 0.7% of that.
Set against GAAP profit, the charges look much bigger. Second-quarter GAAP operating income was $43.3 million. The charges are 1.5 to 1.7 times that figure.
At $217.09, the shares traded at 16.4 times the midpoint of HubSpot's 2026 non-GAAP EPS forecast, $13.27. The market value was 2.9 times the midpoint of 2026 revenue guidance.
HubSpot has given no savings figure. It says the plan frees resources for its biggest opportunities.
The guidance has shifted during the year. In February 2026, HubSpot guided 2026 revenue of $3.69 billion to $3.70 billion. By August, it had trimmed that to $3.678 billion to $3.686 billion.
Over the same period, HubSpot raised its non-GAAP operating income guidance. The old range was $736.0 million to $740.0 million. The new range is $762.0 million to $766.0 million.
Revenue grew 20% in the second quarter. The third-quarter guidance implies growth of 14%.
Operating margin is operating income as a share of revenue. HubSpot's 2026 guidance implies a non-GAAP operating margin of 21%. The filing gives no new margin number.
What to watch next
Third-quarter results come next. HubSpot had not announced the date by 7 October 2026. The quarter had already ended on 30 September 2026 when HubSpot kept its range. The filing says the books for the quarter were not yet closed.
The shares fell 15.0% on 6 November 2025, 19.0% on 8 May 2026 and 19.1% on 6 August 2026. Each fall came the trading day after a results release.
HubSpot expects the job cuts to be substantially complete by the end of the first quarter of 2027.
HubSpot has a $1.0 billion buyback, authorised on 3 August 2026. That is equal to about 9% of its market value. The pace of buying is one to watch.
HubSpot gave its first 2026 guidance with fourth-quarter results on 11 February 2026. Its first 2027 guidance will show what margin it expects for next year.
The job cuts cost under 1% of HubSpot's market value. Even so, the charges exceed the $43.3 million of GAAP operating income HubSpot earned in the whole second quarter. Its 2026 guidance is unchanged, while third-quarter results are the next test of it.
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Common questions about HubSpot stock
Why is HubSpot laying off employees?
HubSpot says it is cutting about 7% of its staff, nearly 660 people, to build a flatter organisation around customer outcomes. Chief Executive Yamini Rangan wrote that the cut is not driven by AI-related efficiencies. HubSpot expects charges of $65 million to $75 million, mostly in the fourth quarter of 2026.
Why is HubSpot stock down so much?
Much of HubSpot's 53.2% fall over the 12 months to 6 October 2026 came on three results days. The shares fell 15.0% on 6 November 2025, 19.0% on 8 May 2026 and 19.1% on 6 August 2026. The August results came with third-quarter guidance implying 14% revenue growth, after 20% in the second quarter.
Did HubSpot change its 2026 guidance?
No. On 6 October 2026 HubSpot kept its own forecasts for the third quarter and full year 2026 unchanged. The full-year revenue range is $3.678 billion to $3.686 billion. HubSpot's forecast for adjusted (non-GAAP) earnings per share is $13.23 to $13.31. The restructuring charges are left out of the adjusted figures. They will appear in the official GAAP results.
DISCLAIMER: This article is strictly educational. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.