Analysts Lower Price Target, But Remain Bullish on Q2 Holdings, Inc. (QTWO)

NodeGuardian · 2026-02-22T22:02:23+00:00

RBC Capital has downgraded Q2 Holdings' price target to $67, maintaining a Sector Perform rating due to a conservative 2027 revenue outlook, amid negative software sector sentiment. Q4 results showed strong growth, with revenue increases and significant free cash flow generation.

NodeGuardian

2026-02-22 22:02:23

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RBC Capital maintained its Sector Perform rating on Q2 Holdings, Inc. (QTWO) but lowered its price target from $86 to $67 due to a conservative fiscal 2027 subscription revenue outlook and broader negative sentiment in the software sector, despite strong Q4 results. Q2 Holdings reported robust Q4 revenue of $208.2 million, a 14% year-over-year increase, with subscription revenue accounting for 82% of total revenue and showing 17% growth. The company provides digital solutions to financial institutions and FinTechs, and generated $173 million in free cash flow with a 93% conversion rate.

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