HubSpot: AI Pivot Is Working And The Stock Still Looks Cheap

HubSpot delivered Q1'26 results with 23% revenue growth, expanded margins, and achieved GAAP profitability for the first time. Enterprise adoption and AI monetization are accelerating, with large-deal ARR up 37-64% and AI-driven revenue streams gaining traction. Management raised full-year guidance, achieved 2027 margin targets a year early, and continues to reduce stock-based compensation as a percent of revenue.