11:37 AM EST, 11/06/2025 (MT Newswires) -- HubSpot ( HUBS ) delivered its third straight quarter of stabilizing growth as artificial intelligence tools and seat-based pricing start to gain momentum, Morgan Stanley said in a note Thursday.

The firm said Q3 revenue rose 21% with strong upmarket traction and multi-hub adoption continuing to drive growth.

Morgan Stanley said "core fundamentals remain solid" with 43% of professional plus customers now using three or more hubs.

"Expanding cross-hub penetration enhances retention, reduces displacement risk, and strengthens value delivery as agentic insights compound across departments and personas," the firm said.

Analysts expect the seat-based pricing model to become a key growth driver as customers on the new model add seats faster.

Morgan Stanley also noted early adopters of HubSpot's ( HUBS ) artificial intelligence platforms are already exceeding credit allotments, driving the company's consumption-based revenue model as usage grows.

Morgan Stanley reiterated its overweight rating on HubSpot ( HUBS ) and lowered its price target to $640 from $747.

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