Blackbaud (NASDAQ:BLKB) Posts Earnings Results, Beats Expectations By $0.04 EPS

Blackbaud (NASDAQ:BLKB) issued its quarterly earnings results on Tuesday. The technology company reported $1.19 EPS for the quarter, beating the consensus estimate of $1.15 by $0.04, Briefing.com reports. Blackbaud had a negative net margin of 22.57% and a positive return on equity of 137.13%. During the same period in the prior year, the firm posted $1.08 earnings per share. The company’s revenue was down 2.3% compared to the same quarter last year. Blackbaud updated its FY 2026 guidance to 5.150-5.250 EPS.

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

• Blackbaud reached its goal of becoming a Rule of 40 company two years ahead of plan, attributing the milestone to operational efficiencies, go-to-market improvements, and AI-enabled product investment.
• Management is “all in” on AI — launching Blackbaud AI Chat and an Agents for Good roadmap; the first product (a fundraising development agent) is a new subscription revenue line with cross-sell and payments upside.
• 2026 guidance and five-year aspirations target organic revenue growth of 4–6%, Adjusted EBITDA growth of 6–8% with a margin target of > 40%, strong free cash flow, and an EPS CAGR goal above 13% (2026 EPS guide $5.15–$5.25).
• Management’s guidance excludes potential upside from AI products and viral giving and warns that a ~40% larger renewal cohort will reduce 2026 revenue growth by roughly 0.5–0.75 percentage points and push more growth into H2, creating tougher near-term comps.
• Capital allocation prioritizes shareholder returns — management plans to deploy at least 50%+ of cumulative free cash flow from 2026–2030 to buybacks (after repurchasing ~8% of shares in 2025) while retaining capacity for deleveraging and tuck-in M&A.

Blackbaud Stock Up 1.6%

NASDAQ BLKB opened at $48.25 on Tuesday. Blackbaud has a 1 year low of $45.81 and a 1 year high of $81.39. The stock has a market capitalization of $2.31 billion, a PE ratio of -9.28, a PEG ratio of 1.75 and a beta of 1.10. The company has a debt-to-equity ratio of 9.63, a current ratio of 0.69 and a quick ratio of 0.69. The business’s 50-day moving average is $58.98 and its 200 day moving average is $61.98.

Insider Buying and Selling at Blackbaud

In related news, Director Rupal S. Hollenbeck sold 1,600 shares of the company’s stock in a transaction on Friday, November 21st. The stock was sold at an average price of $56.49, for a total value of $90,384.00. Following the sale, the director directly owned 6,366 shares of the company’s stock, valued at $359,615.34. This represents a 20.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders own 1.97% of the company’s stock.

Hedge Funds Weigh In On Blackbaud

Several large investors have recently made changes to their positions in the business. Mariner LLC raised its position in Blackbaud by 63.5% during the third quarter. Mariner LLC now owns 5,765 shares of the technology company’s stock valued at $371,000 after purchasing an additional 2,240 shares during the period. Virtu Financial LLC purchased a new stake in Blackbaud during the 3rd quarter valued at $280,000. Vise Technologies Inc. bought a new stake in Blackbaud in the third quarter worth $303,000. Bank of Nova Scotia bought a new stake in Blackbaud in the second quarter worth $394,000. Finally, Jump Financial LLC purchased a new stake in shares of Blackbaud in the second quarter valued at $372,000. 94.21% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on BLKB. Zacks Research lowered shares of Blackbaud from a “strong-buy” rating to a “hold” rating in a report on Monday, December 29th. Wall Street Zen raised shares of Blackbaud from a “hold” rating to a “buy” rating in a research note on Sunday, November 9th. Weiss Ratings restated a “sell (d)” rating on shares of Blackbaud in a research report on Wednesday, January 21st. Finally, Stifel Nicolaus set a $70.00 price objective on Blackbaud in a report on Wednesday, October 29th. Three investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Reduce” and a consensus price target of $73.00.

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.