Blackbaud (NASDAQ:BLKB) Releases Earnings Results, Beats Estimates By $0.10 EPS

Blackbaud (NASDAQ:BLKB) released its quarterly earnings data on Wednesday. The technology company reported $1.33 EPS for the quarter, beating analysts’ consensus estimates of $1.23 by $0.10, Briefing.com reports. The company had revenue of $290.60 million during the quarter, compared to analyst estimates of $292.23 million. Blackbaud had a net margin of 12.41% and a return on equity of 176.76%. Blackbaud’s revenue was up 3.3% compared to the same quarter last year. During the same period last year, the business earned $1.21 earnings per share. Blackbaud updated its FY 2026 guidance to 5.150-5.250 EPS.

Here are the key takeaways from Blackbaud’s conference call:

• Blackbaud reaffirmed its 2026 outlook at the upper half of its guidance ranges, with EPS and free cash flow expected at or above the high end. Q2 adjusted EPS rose 9% to $1.33, while free cash flow increased 46% year over year to $75 million.
• Q2 organic revenue grew 3% to $291 million and adjusted EBITDA reached $110 million, or approximately a 38% margin. Management cited strong bookings, improved win rates, new-logo momentum, and longer contract terms as supporting future growth.
• Blackbaud reported encouraging early customer results from its Development Agent, including above-industry reply and open rates and higher-than-average attributable gift sizes. Four additional AI agents are planned, although management does not expect meaningful AI revenue contribution in 2026.
• Results are expected to remain heavily weighted toward the second half, particularly Q4, partly due to the rollout of a platform fee on certain online transactions. A contractual recurring-revenue renewal cohort approximately 40% larger than last year is also expected to pressure reported gross dollar retention in the near term, though management expects it to recover to 91%–92% by the end of 2027.

Blackbaud Price Performance

Shares of NASDAQ BLKB traded up $6.25 during mid-day trading on Wednesday, reaching $42.18. 1,782,267 shares of the company were exchanged, compared to its average volume of 657,628. Blackbaud has a 52 week low of $25.58 and a 52 week high of $74.88. The company’s 50 day moving average price is $29.69 and its 200 day moving average price is $39.37. The stock has a market capitalization of $1.94 billion, a PE ratio of 14.30, a PEG ratio of 1.23 and a beta of 1.01. The company has a quick ratio of 0.74, a current ratio of 0.74 and a debt-to-equity ratio of 33.66.

Analysts Set New Price Targets

Several analysts have issued reports on the stock. Robert W. Baird upgraded shares of Blackbaud from a “neutral” rating to an “outperform” rating and lowered their target price for the stock from $60.00 to $50.00 in a research note on Thursday, April 30th. Weiss Ratings cut shares of Blackbaud from a “sell (d+)” rating to a “sell (d)” rating in a report on Thursday, July 23rd. Raymond James Financial reiterated an “outperform” rating and issued a $55.00 price objective on shares of Blackbaud in a research report on Wednesday. Stifel Nicolaus dropped their price objective on Blackbaud from $45.00 to $30.00 and set a “hold” rating for the company in a research note on Friday, July 10th. Finally, Zacks Research cut Blackbaud from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 13th. Two analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Blackbaud presently has an average rating of “Hold” and an average price target of $47.50.

Key Headlines Impacting Blackbaud

Here are the key news stories impacting Blackbaud this week:

• Positive Sentiment: Adjusted EPS beat expectations: Blackbaud reported second-quarter earnings of $1.33 per share, above the $1.23 analyst consensus and up from $1.21 a year earlier. Blackbaud Surpasses Q2 Earnings Estimates
• Positive Sentiment: FY 2026 EPS outlook exceeds consensus: Management provided earnings guidance of $5.15 to $5.25 per share, above the $4.87 analyst estimate, and said it expects to finish the year in the upper half of its revenue, adjusted EBITDA, non-GAAP EPS and free-cash-flow ranges. Blackbaud Announces 2026 Second Quarter Results
• Positive Sentiment: Recurring revenue and cash generation remained strong: Second-quarter recurring revenue rose 3.3% year over year to $285.3 million, representing 98.2% of total revenue. Operating cash flow was $91.1 million, while the company had approximately $850 million remaining in its share-repurchase authorization. Blackbaud Q2 Revenue Rises
• Neutral Sentiment: Revenue growth was modest: Quarterly revenue increased about 3% year over year to $290.6 million, broadly consistent with the company’s recurring-revenue profile but slightly below the $292.2 million analyst estimate.
• Negative Sentiment: Insider selling may temper enthusiasm: Quiver Quantitative reported eight insider sales and no insider purchases over the past six months. This is a secondary concern compared with the earnings beat and improved outlook, but could weigh on sentiment.

Insider Buying and Selling

In other Blackbaud news, CFO Chad Anderson sold 6,205 shares of the firm’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $31.31, for a total transaction of $194,278.55. Following the sale, the chief financial officer owned 62,869 shares in the company, valued at $1,968,428.39. This trade represents a 8.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.01% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Quarry LP purchased a new position in Blackbaud in the 3rd quarter worth $46,000. Kestra Advisory Services LLC bought a new position in shares of Blackbaud during the fourth quarter valued at about $47,000. iSAM Funds UK Ltd bought a new position in shares of Blackbaud during the third quarter valued at about $67,000. Quadrant Capital Group LLC purchased a new position in shares of Blackbaud in the third quarter worth about $115,000. Finally, State of Wyoming purchased a new position in shares of Blackbaud in the second quarter worth about $136,000. 94.21% of the stock is currently owned by institutional investors.

About Blackbaud

Blackbaud, Inc is a leading provider of cloud software, services and data intelligence solutions designed specifically for the social good community. The company’s main offerings include fundraising and relationship management platforms, financial management systems, grant and award management tools, and advanced analytics. Its flagship products—such as Raiser’s Edge NXT, Blackbaud Financial Edge NXT and Blackbaud NetCommunity—help nonprofit organizations, educational institutions, healthcare providers and foundations streamline donor engagement, optimize financial operations and measure program impact.

Founded in 1981 and headquartered in Charleston, South Carolina, Blackbaud has grown from a small technology startup into a global specialist in nonprofit software.