AI solutions firm Blackbaud Q3 revenue slightly misses estimates
Overview
AI solutions provider's Q3 revenue grew 4.1% yr/yr, slightly missing analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company repurchased more than 7% of outstanding shares year-to-date
Outlook
Blackbaud reaffirms 2026 full-year GAAP revenue guidance of $1.173 bln to $1.179 bln
Company expects 2026 non-GAAP adjusted EBITDA of $430 mln to $438 mln
Company sees 2026 non-GAAP diluted EPS of $5.15 to $5.25
Result Drivers
AI INVESTMENTS - Co said ongoing investments in AI and related innovations drove results, per CEO Mike Gianoni
PRODUCTIVITY IMPROVEMENTS - Co attributed results to ongoing productivity improvements and execution discipline, per CFO Chad Anderson
CAPITAL ALLOCATION - Co said purposeful capital allocation, including share repurchases and reduced leverage, contributed to results, per CFO Chad Anderson
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Miss* | $292.60 mln | $293.93 mln (4 Analysts) |
Q3 Adjusted EPS | Beat | $1.36 | $1.33 (4 Analysts) |
Q3 Adjusted Net Income | $61.20 mln | ||
Q3 Adjusted EBITDA | $111.10 mln | ||
Q3 Adjusted Income From Operations | $94.60 mln | ||
Q3 Adjusted Operating Margin | 32.30% |
*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 3 "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 $55.00, about 2.4% above its October 27 closing price of $53.70
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 5 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.)