HubSpot (HUBS) saw stronger-than-expected Q2 demand, driven by improving sales momentum, larger deal sizes and growing AI adoption, Oppenheimer said in a Thursday note, citing commentary from a leading HubSpot implementation partner.

The analyst said Q2 demand exceeded the partner's internal quota, with June marking the strongest month of the year, while Q3 pipeline trends remained above typical seasonal levels despite HubSpot's go-to-market reset.

Oppenheimer said growing adoption of HubSpot's AI products, including Customer Agent and Prospecting Agent, along with increased AI credit purchases and rising interest in Revenue Hub and Data Hub, is driving increased customer spending.

Competition with Salesforce (CRM) and macroeconomic uncertainty have not materially affected demand, while recent concerns over HubSpot's data practices have not resulted in meaningful customer churn, the report added.

Oppenheimer maintained an outperform rating on the stock with a price target of $275.

Shares of HubSpot were up 1.4% in Thursday trading.

Price: 200.87, Change: +3.05, Percent Change: +1.54