Blackbaud Q3 2026: EPS Beats on Buybacks, Revenue Misses Narrowly
As seen on the 24/7 Wall St. homepage on October 28, 2026.
Buybacks are carrying the earnings line at Blackbaud: EPS beat expectations with per-share earnings up 23.6% year over year while revenue growth came in below estimates. Management reaffirmed full-year guidance at the upper half of its key ranges, and 2026 repurchases are set to retire 7% to 10% of shares outstanding.
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Blackbaud posted adjusted non-GAAP diluted EPS of $1.36 for the third quarter of 2026, exceeding expectations and up 23.6% year over year. A share repurchase program has already retired more than 7% of common stock outstanding since the end of 2025.
Revenue of $292.64 million grew 4.1% from a year ago, missing expectations. Recurring revenue, at 98.1% of the total, points to a business that remains sticky even as headline growth trails investor expectations.
Non-GAAP operating margin expanded 240 basis points to 32.3%, reflecting ongoing productivity improvements and operating discipline. The Rule of 40 score came in at 42.1%, a metric closely watched in software investing.
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Management reaffirmed full-year 2026 guidance and expects to land in the upper half of all four key ranges, including non-GAAP diluted EPS of $5.15 to $5.25. With roughly $832 million left under the repurchase authorization, the buyback lifting per-share results is unlikely to slow into the fourth quarter.
Blackbaud unveiled AI initiatives at its bbcon conference in September, including Platform for Good, a unified operating system for social impact, and Lantern, a fundraising intelligence language model built with Databricks and set to be embedded in Platform for Good starting in 2027. New integrations with Microsoft 365 Copilot and Intuit Mailchimp for Raiser's Edge NXT show how the company intends to compete as nonprofit AI adoption accelerates.
Mentioned: BLKB