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

Key Points

• Blackbaud beat adjusted EPS expectations: Second-quarter adjusted EPS was $1.33, exceeding the $1.23 consensus, while revenue reached $290.6 million, up 3.3% year over year but slightly below estimates.
• Management maintained a strong 2026 outlook: Full-year EPS guidance is $5.15–$5.25, with results and free cash flow expected toward the upper end of guidance ranges. Free cash flow rose 46% year over year to $75 million.
• Growth opportunities come with near-term execution risks: New customer wins and early results from the Development Agent support future growth, but AI is not expected to contribute meaningfully to 2026 revenue, while platform-fee changes and a larger renewal cohort may pressure second-half results and retention metrics.

Blackbaud (NASDAQ:BLKB - Get Free Report) issued its earnings results on Wednesday. The technology company reported $1.33 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.23 by $0.10, Briefing.com reports. The firm had revenue of $290.60 million for the quarter, compared to the consensus estimate of $292.23 million. Blackbaud had a net margin of 12.41% and a return on equity of 176.76%. The business's revenue was up 3.3% on a year-over-year basis. During the same quarter in the prior year, the firm 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 Stock Performance

BLKB traded up $6.25 during mid-day trading on Wednesday, reaching $42.18. 1,782,112 shares of the company traded hands, compared to its average volume of 653,170. The company's fifty 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 P/E ratio of 14.30, a P/E/G 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. Blackbaud has a 52-week low of $25.58 and a 52-week high of $74.88.

Blackbaud News Summary

Here are the key news stories impacting Blackbaud this week:

• 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 on 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 sale, the chief financial officer owned 62,869 shares of the company's stock, valued at $1,968,428.39. The trade was a 8.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.01% of the stock is owned by insiders.

Institutional Investors Weigh In On Blackbaud

A number of large investors have recently made changes to their positions in BLKB. Glenmede Investment Management LP boosted its holdings in shares of Blackbaud by 2.1% in the third quarter. Glenmede Investment Management LP now owns 10,492 shares of the technology company's stock worth $675,000 after buying an additional 215 shares during the last quarter. Inspire Investing LLC raised its holdings in Blackbaud by 4.4% in the 4th quarter. Inspire Investing LLC now owns 7,382 shares of the technology company's stock worth $467,000 after purchasing an additional 310 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Blackbaud by 1.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 23,434 shares of the technology company's stock valued at $1,454,000 after purchasing an additional 361 shares in the last quarter. Sei Investments Co. grew its holdings in Blackbaud by 1.5% during the second quarter. Sei Investments Co. now owns 26,850 shares of the technology company's stock valued at $1,724,000 after purchasing an additional 403 shares during the period. Finally, Natixis Advisors LLC increased its position in Blackbaud by 2.4% in the third quarter. Natixis Advisors LLC now owns 17,560 shares of the technology company's stock worth $1,129,000 after buying an additional 414 shares in the last quarter. 94.21% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on BLKB. Raymond James Financial reaffirmed an "outperform" rating on shares of Blackbaud in a research report on Wednesday. Robert W. Baird raised Blackbaud from a "neutral" rating to an "outperform" rating and dropped their price objective for the company from $60.00 to $50.00 in a research report on Thursday, April 30th. Weiss Ratings downgraded Blackbaud from a "sell (d+)" rating to a "sell (d)" rating in a report on Thursday, July 23rd. Zacks Research lowered Blackbaud from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 13th. Finally, Stifel Nicolaus lowered their target price on shares of Blackbaud from $45.00 to $30.00 and set a "hold" rating on the stock in a research note on Friday, July 10th. Two investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $48.75.

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.

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