HubSpot Inc (NYSE:HUBS) shares tumbled 4.7% in after-hours trading Wednesday despite reporting fourth-quarter earnings that exceeded analyst expectations. The customer platform provider posted adjusted earnings per share of $3.10, beating the $2.99 estimate, while revenue reached $846.7 million, surpassing the $830.61 million consensus.

HubSpot's stock decline appears disconnected from its financial performance, as the company also issued guidance above analyst expectations. For fiscal year 2026, HubSpot forecasts earnings per share of $12.38 to $12.46, well above the consensus of $11.46, and revenue of $3.69 billion to $3.70 billion, exceeding the $3.61 billion consensus estimate. The company's customer base grew 16% year-over-year to 288,706, while average subscription revenue per customer increased 3% to $11,683.

The sell-off reflects broader rotation out of software stocks amid AI-related concerns rather than company-specific issues. HubSpot's board also authorized a new share repurchase program of up to $1 billion over the next 24 months. The disconnect between HubSpot's strong fundamentals and stock performance highlights the current market's sensitivity to AI disruption fears across the software sector.