HubSpot's (HUBS) 2026 outlook points to a gradual pickup in growth through the year, with momentum hinging on steady core demand and increasing contributions from newer revenue drivers in H2, Morgan Stanley said Thursday in a report.

The company said late Wednesday that it expects 2026 adjusted earnings of $12.38 to $12.46 a share on revenue of $3.69 billion to $3.70 billion. Analysts expected EPS of $11.52 a share on revenue of $3.61 billion. HubSpot sells cloud software that helps small and midsize businesses manage marketing, sales, and customer service.

The company continues to see customers add paid users across multiple product lines at "healthy rates," Morgan Stanley said. Pricing changes are tracking as planned with 90% of legacy customers moving to the new model, and half of annual recurring revenue going through a first renewal, the report said.

Customers are beginning to exhaust embedded credits and pay for overages to unlock more functionality, a pattern expected to build into H2 as product cycles mature, the report said.

Morgan Stanley lowered its price target on HubSpot stock to $405 from $577 and maintained its overweight rating.

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