Blackbaud Q2 EPS beats estimates on cost discipline

Overview

• AI-powered social impact platform's Q2 revenue rose 3% but slightly missed analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Company repurchased over 6% of shares year-to-date, expects 2026 buybacks to reach up to 10%

Outlook

• Blackbaud expects FY26 revenue of $1.173 bln to $1.179 bln

• Company sees FY26 adj EBITDA of $430 mln to $438 mln

• Company expects FY26 non-GAAP EPS of $5.15 to $5.25

Result Drivers

• AI INVESTMENT - Co said ongoing investment in AI and product innovation contributed to operational efficiency and productivity gains

• COST DISCIPLINE - Co cited execution against its operating plan and efficiency initiatives as supporting results

Company press release: ID:nPn7RgG9ba

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Blackbaud Inc is $47.50, about 32.2% above its July 28 closing price of $35.93

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)