Blackbaud Reports Third Quarter Revenue Growth and Strategic AI Integration
Blackbaud (BLKB) reported third-quarter revenue of $293 million, representing a 4.1% year-over-year increase. During its Q3 2026 earnings call, management announced that full-year adjusted earnings per share and free cash flow are expected to meet or exceed the high end of previous guidance. The company is focusing on margin expansion through infrastructure modernization, specifically by migrating tasks to public cloud providers and closing its final two company-operated data centers by year-end. To drive future growth, Blackbaud has launched Lantern, a specialized AI language model developed with Databricks to enhance its Raiser's Edge NXT platform. While a large renewal cohort created recent headwinds for gross dollar retention, management expects retention to normalize between 91% and 92% in 2027 as the renewal volume decreases by approximately 25%. The company also remains committed to shareholder returns, planning to deploy at least 50% of cumulative free cash flow through 2030 toward share repurchases.
Tickers: $BLKB
Topics: artificial intelligence contract renewals revenue growth stock buyback