Blackbaud (NASDAQ:BLKB – Get Free Report) announced its quarterly earnings data on Wednesday. The technology company reported $1.33 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.23 by $0.10, Briefing.com reports. The firm had revenue of $290.60 million during the quarter, compared to analysts’ expectations of $292.23 million. Blackbaud had a net margin of 12.41% and a return on equity of 176.76%. The company’s revenue for the quarter was up 3.3% compared to the same quarter last year. During the same period in the prior year, the company posted $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 on Wednesday, reaching $42.18. The company’s stock had a trading volume of 1,782,112 shares, compared to its average volume of 653,170. Blackbaud has a 52-week low of $25.58 and a 52-week high of $74.88. The company has a market cap of $1.94 billion, a P/E ratio of 14.30, a PEG ratio of 1.23 and a beta of 1.01. The company has a 50-day simple moving average of $29.69 and a 200 day simple moving average of $39.37. The company has a debt-to-equity ratio of 33.66, a quick ratio of 0.74 and a current ratio of 0.74.
More Blackbaud News
- Positive Sentiment: Adjusted earnings beat expectations: Blackbaud reported quarterly adjusted EPS of $1.33, above the Zacks consensus estimate of $1.23 and up from $1.21 a year earlier. Blackbaud Surpasses Q2 Earnings Estimates
- Positive Sentiment: Full-year EPS guidance increased: Blackbaud projected fiscal 2026 EPS of $5.15 to $5.25, well above the analyst consensus of $4.87. Management also 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 flow remained solid: Second-quarter revenue rose 3.0% year over year to $290.6 million, while recurring revenue increased 3.3% to $285.3 million, representing 98.2% of total revenue. Operating cash flow was $91.1 million, and approximately $850 million remained available under the company’s stock-repurchase authorization. Blackbaud Q2 2026 Earnings
- Neutral Sentiment: GAAP and adjusted results differ: The company reported GAAP net income of $35.4 million and diluted GAAP EPS of $0.79. A separate earnings report cited $0.83 EPS against a $1.23 consensus estimate, while the $1.33 figure reflects the adjusted measure investors typically use for comparison.
- Negative Sentiment: Growth remains moderate and insider selling is a potential overhang: Revenue growth was only about 3%, and insiders made eight open-market sales with no purchases over the past six months. These factors could temper enthusiasm despite the earnings beat and stronger EPS outlook.
Insider Activity at Blackbaud
In related news, CFO Chad Anderson sold 6,205 shares of Blackbaud stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $31.31, for a total value of $194,278.55. Following the completion of the transaction, the chief financial officer owned 62,869 shares in the company, valued at approximately $1,968,428.39. This trade represents a 8.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 2.01% of the company’s stock.
Institutional Investors Weigh In On Blackbaud
Several institutional investors have recently modified their holdings of BLKB. Quarry LP purchased a new position in shares of Blackbaud in the 3rd quarter worth approximately $46,000. Kestra Advisory Services LLC purchased a new position in Blackbaud during the fourth quarter worth $47,000. iSAM Funds UK Ltd bought a new position in Blackbaud during the third quarter valued at $67,000. Quadrant Capital Group LLC bought a new position in Blackbaud during the third quarter valued at $115,000. Finally, State of Wyoming purchased a new stake in shares of Blackbaud in the second quarter valued at $136,000. 94.21% of the stock is owned by institutional investors.
Analyst Upgrades and Downgrades
A number of equities research analysts have issued reports on BLKB shares. Weiss Ratings lowered Blackbaud from a “sell (d+)” rating to a “sell (d)” rating in a research note on Thursday, July 23rd. Raymond James Financial reiterated an “outperform” rating on shares of Blackbaud in a research report on Wednesday. Zacks Research downgraded Blackbaud from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 13th. Stifel Nicolaus cut their price objective on shares of Blackbaud from $45.00 to $30.00 and set a “hold” rating for the company in a report on Friday, July 10th. Finally, Robert W. Baird raised 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 report on Thursday, April 30th. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Blackbaud has an average rating of “Hold” and a consensus price target of $48.75.
Blackbaud Company Profile
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.
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