Blackbaud (NASDAQ:BLKB) Releases Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• Blackbaud beat quarterly earnings expectations, reporting adjusted EPS of $1.36 versus the $1.33 consensus estimate. Revenue rose 4.1% year over year to approximately $292.6 million, slightly below analyst forecasts.
• The company reaffirmed its 2026 outlook, projecting performance toward the upper end of its revenue and adjusted EBITDA ranges while targeting at least 50% of cumulative 2026–2030 free cash flow for share repurchases.
• Blackbaud launched new philanthropy-focused AI initiatives, but near-term revenue is uncertain; meanwhile, a larger renewal cohort is expected to pressure retention and recurring-revenue growth through the first half of 2027.

Blackbaud (NASDAQ:BLKB - Get Free Report) issued its quarterly earnings results on Wednesday. The technology company reported $1.36 earnings per share for the quarter, topping the consensus estimate of $1.33 by $0.03, FiscalAI reports. The company had revenue of $292.64 million for the quarter, compared to analyst estimates of $293.93 million. During the same period in the prior year, the business earned $1.10 earnings per share. Blackbaud's revenue for the quarter was up 4.1% compared to the same quarter last year.

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

• Q3 results exceeded expectations, with revenue up 4.1% to $293 million, adjusted EBITDA of $111 million, non-GAAP EPS up 24% to $1.36, and free cash flow of $126 million.
• Blackbaud reaffirmed its 2026 outlook, expecting revenue and adjusted EBITDA in the upper half of their ranges and EPS and free cash flow at or above the high end; the company also plans to deploy at least 50% of cumulative 2026–2030 free cash flow toward share repurchases.
• The company announced Platform for Good and Lantern, a philanthropy-focused AI model developed with Databricks, with Lantern expected to begin powering products in 2027. Management said 2026 guidance assumes no meaningful revenue from new AI products, making near-term monetization uncertain but potentially creating longer-term upside.
• A renewal cohort roughly 40% larger than last year is weighing on reported retention and recurring-revenue growth through the first half of 2027, although management expects the smaller 2027 cohort to support normalization and gross dollar retention of 91%–92% by year-end 2027.
• Blackbaud expects efficiency gains from closing its remaining company-operated data centers by year-end and expanding its India global capability center, with most financial benefits beginning in 2027; the company also reduced debt leverage to just under 2.3 times in Q3.

Blackbaud Stock Performance

BLKB stock traded down $4.13 on Wednesday, reaching $49.57. The company had a trading volume of 174,850 shares, compared to its average volume of 599,917. The company's fifty day moving average is $46.76 and its 200 day moving average is $41.62. The company has a market cap of $2.25 billion, a P/E ratio of 15.50 and a beta of 1.04. Blackbaud has a 1 year low of $25.58 and a 1 year high of $70.71.

Insider Buying and Selling

In related news, CFO Chad Anderson sold 2,000 shares of the firm's stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $47.56, for a total value of $95,120.00. Following the transaction, the chief financial officer owned 59,883 shares in the company, valued at approximately $2,848,035.48. This trade represents a 3.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP David J. Benjamin sold 2,086 shares of the firm's stock in a transaction on Monday, August 31st. The shares were sold at an average price of $48.27, for a total transaction of $100,691.22. Following the sale, the executive vice president directly owned 71,038 shares of the company's stock, valued at approximately $3,429,004.26. The trade was a 2.85% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 43,086 shares of company stock valued at $2,001,761 over the last three months. Insiders own 2.01% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. Raymond James Financial reissued an "outperform" rating and set a $55.00 price target on shares of Blackbaud in a report on Wednesday, July 29th. Robert W. Baird boosted their target price on Blackbaud from $54.00 to $58.00 and gave the stock an "outperform" rating in a research report on Tuesday, September 15th. Stifel Nicolaus cut their target price 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, Weiss Ratings raised Blackbaud from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, October 19th. Two research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $49.50.

Blackbaud Company Profile

Blackbaud, Inc NASDAQ: BLKB develops cloud-based software and services for nonprofit organizations, educational institutions, healthcare and other social-impact organizations. Its technology helps customers manage fundraising, donor relationships, financial operations, grantmaking, marketing, ticketing, payments and community engagement.

The company's product portfolio includes solutions such as Raiser's Edge NXT for nonprofit fundraising and constituent relationship management, Financial Edge NXT for nonprofit accounting, Luminate for online fundraising and advocacy, Grantmaking, Blackbaud Tuition Management, and Altru for cultural organizations.

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