GET DAILY SIGNALSBlackbaud (BLKB) Delivers Q3 Beat with +24% EPS Growth and Strong Cash Flow
Key Takeaways
- Blackbaud reported third-quarter 2026 GAAP revenue of $292.6 million, up 4.1% year over year.
- Non-GAAP diluted earnings per share (EPS) rose 24% to $1.36, topping consensus estimates of roughly $1.32 to $1.33.
- Non-GAAP adjusted EBITDA reached $111 million, a 38% margin.
- Free cash flow came in at $126 million, exceeding management's expectations for the period.
- The company reaffirmed full-year 2026 guidance and now expects revenue and adjusted EBITDA in the upper half of its ranges.
- For more detail on Blackbaud's Major News, Today's Price Move, Price Targets, and Forecast, explore the dedicated pages for the ticker.
- Discover automated trading strategies and market insights by exploring Trending AI Robots.
Earnings Context and Why It Matters
Blackbaud is a leading software provider for social-impact organizations, serving nonprofits, foundations, education institutions, and healthcare organizations. Its third-quarter 2026 report matters because it tests whether the company can keep delivering a balanced financial profile, pairing steady recurring revenue with expanding profitability and cash flow. In recent quarters, Blackbaud has leaned on efficiency gains, a fast-growing payments business, and an aggressive share repurchase program. I’m watching organic growth, customer retention, and early traction in artificial intelligence (AI) products closely, all of which shape the company’s ability to sustain double-digit EPS growth while navigating a larger 2026 contract renewal cycle. From what I see, checking comparable names with Tickeron’s AI Screener helps put these trends in perspective.
Reported Results
Blackbaud reported GAAP revenue of $292.6 million for the three months ended September 30, 2026, up 4.1% from $281.1 million a year earlier. GAAP net income was $46.1 million, with diluted EPS of $1.02.
On a non-GAAP basis, which management emphasizes for comparability, diluted EPS increased 24% to $1.36, ahead of consensus estimates of about $1.32 to $1.33. Non-GAAP adjusted EBITDA climbed to $111 million, representing a 38% margin. Free cash flow was a standout at $126 million, coming in above the company’s expectations.
Recurring revenue remained the core of the business, representing 98.1% of total revenue at $287.0 million. Management reaffirmed its full-year 2026 outlook, signaling results in the upper half of guidance ranges for revenue and adjusted EBITDA, and at or above the high end for EPS and free cash flow.
Market Reaction and Investor Sentiment
Despite the earnings beat, Blackbaud shares slipped roughly 2% following the report, reflecting a market more focused on the pace of top-line growth than on profitability. Investors appeared to weigh the company’s 4.1% revenue expansion against its increasingly rich margin and cash-flow profile, signaling some caution about how quickly AI products and payments can accelerate growth. Sentiment heading into the report had been constructive after several consecutive EPS beats, but the stock’s reaction suggests the bar has risen for a clearer reacceleration in organic revenue, even as the bottom line continues to impress.
Forward Outlook and Key Factors to Monitor
Blackbaud reaffirmed its 2026 guidance, which calls for GAAP revenue of $1.173 billion to $1.179 billion, non-GAAP adjusted EBITDA of $430 million to $438 million, non-GAAP diluted EPS of $5.15 to $5.25, and non-GAAP free cash flow of $280 million to $290 million. Management now expects to finish in the upper half of these ranges for revenue and EBITDA, with EPS and free cash flow at or above the high end.
Investors should watch three areas. First, the company’s new AI offerings, including the Platform for Good and Lantern, a fundraising-focused language model built with Databricks, are not expected to contribute meaningfully to 2026 revenue but represent potential upside over time. Second, Blackbaud’s 2026 renewal cohort is roughly 40% larger than 2025, creating a near-term headwind to retention metrics that management expects to normalize by the end of 2027.
Finally, capital returns remain a key theme. The company had about $832 million remaining under its repurchase program and has reduced shares outstanding by roughly 16% since late 2023. Longer-term, Blackbaud is targeting 4% to 6% annual organic revenue growth and 6% to 8% adjusted EBITDA growth through 2030, with a 40%-plus EBITDA margin and double-digit EPS growth.
Using Tickeron Tools in My Analysis
In my research process, I often rely on Tickeron’s AI Screener to quickly filter software and payments stocks by fundamentals, technical patterns, and AI signals. It helps surface comparable ideas efficiently when evaluating names like Blackbaud, giving a clearer view of relative strength without manual effort. The tool supports customizable scans across industries and performance metrics, which I find useful for staying on top of sector trends.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
BLKB sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for BLKB moved above the 200-day moving average on September 24, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 05, 2026. You may want to consider a long position or call options on BLKB as a result. In 45 of 79 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 57%.
The Moving Average Convergence Divergence (MACD) for BLKB just turned positive on October 07, 2026. Looking at past instances where BLKB's MACD turned positive, the stock continued to rise in 24 of 39 cases over the following month. The odds of a continued upward trend are 62%.
BLKB moved above its 50-day moving average on October 09, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for BLKB crossed bullishly above the 50-day moving average on October 15, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 47%.
Following a +5.43% 3-day Advance, the price is estimated to grow further. Considering data from situations where BLKB advanced for three days, in 180 of 312 cases, the price rose further within the following month. The odds of a continued upward trend are 58%.
The Aroon Indicator entered an Uptrend today. In 95 of 184 cases where BLKB Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 52%.
Bearish Trend Analysis
The 10-day RSI Indicator for BLKB moved out of overbought territory on October 27, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 29 similar instances where the indicator moved out of overbought territory. In 20 of the 29 cases, the stock moved lower in the following days. This puts the odds of a move lower at 69%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 14 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BLKB declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 70%.
BLKB broke above its upper Bollinger Band on October 07, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 11 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 35 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 36 (best 1 - 100 worst), indicating steady price growth. BLKB’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 61 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 88 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (35.558) is normal, around the industry mean (-0.834). P/E Ratio (16.207) is within average values for comparable stocks, (15.481). Projected Growth (PEG Ratio) (0.448) is also within normal values, averaging (2.824). Dividend Yield (0.009) settles around the average of (0.077) among similar stocks. P/S Ratio (1.831) is also within normal values, averaging (71.128).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BLKB’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock worse than average.
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General Information
a provider of software and related services for non-profit organizations
Industry PackagedSoftware
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