Key Highlights

  • BLKB shares are indicated down 8.75% at $49.00 in premarket, against a prior close of $53.70.
  • Q3 non-GAAP EPS of $1.36 beat the $1.33 consensus, but revenue of $292.6 million missed.
  • Blackbaud reaffirmed 2026 guidance and expects to finish in the upper half of all four ranges.
  • Adjusted EBITDA margin expanded 260 basis points to 38.0%.
  • The stock had run above the mean analyst target of $51.50.

Blackbaud (NASDAQ:BLKB) shares are indicated down 8.75% at $49.00 in premarket after a mixed third quarter. Non-GAAP EPS of $1.36 beat the $1.33 consensus, but revenue of $292.6 million, up 4.1%, came in slightly below the roughly $293.9 million estimate. Shares closed Tuesday at $53.70, down 2.49%.

Blackbaud, headquartered in Charleston, South Carolina, builds cloud-based software for the social impact market, including fundraising and donor management, financial management, grantmaking and payment processing. Its products include Raiser's Edge NXT, Financial Edge NXT, JustGiving and YourCause, and it is led by CEO Michael Gianoni.

Reaffirmed Rather Than Raised

Blackbaud reaffirmed its 2026 guidance and said it expects to finish in the upper half of all four ranges. Investors had been looking for evidence that AI products such as Platform for Good and Lantern can lift growth beyond the mid-single-digit framework, so a reaffirmation fell short. Guidance sits at or just below the $5.25 EPS consensus, and the small revenue miss tempered enthusiasm.

Margins and Buybacks Hold Up

Adjusted EBITDA margin expanded 260 basis points to 38.0%, and leverage fell to 2.3x. More than 7% of shares have been repurchased this year, with about $832 million of buyback capacity left.

AI Platform Plans Take Shape

At its BBCon conference, Blackbaud announced Platform for Good, a unified operating system for social impact built on a data core, an intelligence layer and an action layer of assistants, agents and workflows. It requires no action from existing customers.

Lantern, a domain-specific language model for fundraising developed with Databricks, will begin powering Raiser's Edge NXT and Agents for Good in 2027. Agents for Good is expanding with a data health agent, and agentic previews were shown for accounts payable in Financial Edge NXT and for education. Management stressed that AI spending is in addition to, not instead of, investment in core products.

Stock Had Outrun Targets

The stock ran above the mean analyst target of $51.50 into the print, and Stifel's Hold rating carries a $45 target. The technology sector ETF is up about 0.6% in premarket, so the decline is stock-specific. The 52-week range runs from $25.58 to $70.71.