Blackbaud (NASDAQ:BLKB) Posts Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Key Points

• Beat expectations: Blackbaud reported Q1 EPS of $1.14 versus $1.08 consensus and revenue of $281.14M (+4.2% YoY), and updated FY2026 guidance to $5.150–$5.250 EPS.
• Product launch: the company introduced its first agentic product, the Fundraising Development Agent, priced in the low tens of thousands per year with plans to cross-sell to thousands of customers to create a new subscription/transactional revenue stream.
• Capital allocation and targets: Management reaffirmed 2026 guidance and set 2026–2030 targets of ~4–6% annual organic revenue growth, 6–8% adjusted EBITDA growth with >40% EBITDA margin, >13% non‑GAAP EPS CAGR, and plans to deploy 50%+ of free cash flow to buybacks (the company repurchased ~4.5% of shares in the quarter).

Blackbaud (NASDAQ:BLKB - Get Free Report) issued its quarterly earnings results on Wednesday. The technology company reported $1.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.08 by $0.06, Briefing.com reports. The business had revenue of $281.14 million for the quarter, compared to analysts' expectations of $279.33 million. Blackbaud had a net margin of 10.19% and a return on equity of 175.57%. The business's quarterly revenue was up 4.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.96 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 launched its first agentic product, the Fundraising Development Agent, now generally available with pricing expected in the low tens of thousands per year and a plan to cross-sell subscriptions to thousands of existing and new customers, creating a new subscription and potential transactional revenue stream.
• Q1 results: organic revenue grew 4.2% to $281M, non‑GAAP adjusted EBITDA was $99M, non‑GAAP EPS rose to $1.14 (+20% YoY), free cash flow was $37M, and the company repurchased roughly 4.5% of shares outstanding.
• Management reaffirmed 2026 guidance and set 2026–2030 targets of ~4–6% annual organic revenue growth, 6–8% adjusted EBITDA growth with >40% EBITDA margin, a >13% non‑GAAP EPS CAGR, and plans to deploy 50%+ of 2026–2030 free cash flow to buybacks.
• They warned Q2 adjusted EBITDA dollars may decline slightly due to planned AI investments and noted 2026 results are back‑loaded, but also highlighted gross‑margin upside from closing legacy data centers and internal AI productivity gains across engineering and operations.

Blackbaud Stock Up 4.1%

NASDAQ:BLKB traded up $1.53 during mid-day trading on Wednesday, hitting $39.04. The stock had a trading volume of 953,496 shares, compared to its average volume of 530,863. The stock has a 50-day simple moving average of $42.16 and a two-hundred day simple moving average of $53.09. The company has a market capitalization of $1.80 billion, a PE ratio of 16.40, a PEG ratio of 1.28 and a beta of 1.18. Blackbaud has a twelve month low of $33.95 and a twelve month high of $74.88. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 12.78.

Insider Activity at Blackbaud

In related news, EVP Kevin Mcdearis sold 15,462 shares of the firm's stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $46.43, for a total value of $717,900.66. Following the sale, the executive vice president owned 91,756 shares of the company's stock, valued at $4,260,231.08. This trade represents a 14.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Kevin P. Gregoire sold 2,000 shares of the firm's stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $50.02, for a total transaction of $100,040.00. Following the completion of the sale, the executive vice president directly owned 135,194 shares in the company, valued at approximately $6,762,403.88. This trade represents a 1.46% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 39,801 shares of company stock valued at $1,893,874 over the last 90 days. 1.97% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Blackbaud

Several hedge funds have recently added to or reduced their stakes in BLKB. Entropy Technologies LP acquired a new stake in shares of Blackbaud during the fourth quarter worth $316,000. Vise Technologies Inc. acquired a new stake in shares of Blackbaud during the third quarter worth $303,000. Walleye Capital LLC acquired a new stake in shares of Blackbaud during the fourth quarter worth $298,000. Captrust Financial Advisors lifted its holdings in shares of Blackbaud by 45.2% during the fourth quarter. Captrust Financial Advisors now owns 4,676 shares of the technology company's stock worth $296,000 after purchasing an additional 1,455 shares during the period. Finally, Virtu Financial LLC acquired a new stake in shares of Blackbaud during the third quarter worth $280,000. 94.21% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on BLKB shares. Stifel Nicolaus reduced their price target on shares of Blackbaud from $50.00 to $45.00 and set a "hold" rating on the stock in a research report on Tuesday. Raymond James Financial set a $60.00 price target on shares of Blackbaud in a research report on Tuesday, February 10th. Zacks Research cut shares of Blackbaud from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 13th. Weiss Ratings cut shares of Blackbaud from a "sell (d+)" rating to a "sell (d)" rating in a report on Tuesday, April 21st. Finally, Evercore set a $55.00 target price on shares of Blackbaud in a report on Wednesday, February 11th. Two equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus price target of $55.00.

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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