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

Blackbaud (NASDAQ:BLKB) posted its earnings results on Tuesday. The technology company reported $1.19 earnings per share for the quarter, beating analysts’ consensus estimates 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%. The business’s revenue was down 2.3% on a year-over-year basis. During the same period in the previous year, the company earned $1.08 EPS. 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 Trading Up 1.0%

BLKB opened at $48.74 on Tuesday. Blackbaud has a 12 month low of $45.81 and a 12 month high of $81.39. The firm’s fifty day simple moving average is $58.98 and its 200 day simple moving average is $61.98. The stock has a market capitalization of $2.33 billion, a P/E ratio of -9.61, a P/E/G ratio of 1.75 and a beta of 1.10. The company has a current ratio of 0.69, a quick ratio of 0.69 and a debt-to-equity ratio of 9.63.

Analysts Set New Price Targets

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

Insider Activity at Blackbaud

In other Blackbaud news, Director Rupal S. Hollenbeck sold 1,600 shares of the business’s stock in a transaction that occurred on Friday, November 21st. The stock was sold at an average price of $56.49, for a total transaction of $90,384.00. Following the transaction, the director owned 6,366 shares of the company’s stock, valued at $359,615.34. The trade was a 20.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 1.97% of the stock is currently owned by company insiders.

Institutional Trading of Blackbaud

Institutional investors have recently modified their holdings of the stock. Shapiro Capital Management LLC lifted its position in Blackbaud by 248.3% during the third quarter. Shapiro Capital Management LLC now owns 419,189 shares of the technology company’s stock worth $26,958,000 after purchasing an additional 298,839 shares during the period. Jane Street Group LLC lifted its holdings in shares of Blackbaud by 886.2% during the 1st quarter. Jane Street Group LLC now owns 159,729 shares of the technology company’s stock worth $9,911,000 after acquiring an additional 143,533 shares during the period. Marshall Wace LLP boosted its position in shares of Blackbaud by 419.0% during the 3rd quarter. Marshall Wace LLP now owns 172,576 shares of the technology company’s stock worth $11,098,000 after acquiring an additional 139,326 shares in the last quarter. BNP Paribas Financial Markets boosted its position in shares of Blackbaud by 329.1% during the 3rd quarter. BNP Paribas Financial Markets now owns 122,973 shares of the technology company’s stock worth $7,908,000 after acquiring an additional 94,315 shares in the last quarter. Finally, HRT Financial LP raised its position in Blackbaud by 358.3% during the second quarter. HRT Financial LP now owns 111,214 shares of the technology company’s stock valued at $7,141,000 after purchasing an additional 86,950 shares in the last quarter. 94.21% of the stock is currently owned by institutional investors.

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.