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

Jabran Kundi

Mon, February 23, 2026 at 3:53 AM GMT+9 2 min read

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Q2 Holdings, Inc. (NYSE:QTWO) is one of the 11 best 52-week low technology stocks to buy now. On February 11, RBC Capital maintained its Sector Perform rating on Q2 Holdings, Inc. (NYSE:QTWO) while lowering its price target. Analyst Daniel Perlin reduced the firm’s price target on the stock from $86 to $67. The analyst said that the company’s Q4 results showed improving margins and a strong bookings performance. However, an initial outlook for fiscal 2027 subscription revenue growth of 12.5% to 13% put pressure on the stock. According to the firm, the more conservative outlook, along with the broader negative sentiment across the software space, contributed to the recent pullback in the shares.

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

In the fourth quarter, Q2 Holdings, Inc. (NYSE:QTWO) reported total revenue worth $208.2 million, representing a 14% year-over-year and 3% quarter-over-quarter increase. Full-year revenue came in at $794.8 million, up 14% from the last year. Subscription revenue accounted for 82% of total revenue and grew by 17% for the year. Total Annual Recurring Revenue (ARR) reached $921 million, representing a 12% annual growth, while subscription ARR rose 14% to $780 million. Gross margin grew to 58.6% during the quarter, slightly up from 57.4% in the previous year. However, for the full-year gross margins went up from 56% to 58%. Reflecting a solid 93% conversion rate, the company generated $173 million in free cash flow during the year.

Q2 Holdings, Inc. (NYSE:QTWO) operates as a provider of digital solutions. The company offers its solutions to financial technology companies, alternative finance companies (Alt-FIs), financial institutions, and FinTechs across the United States. It also provides a Digital Banking Platform and risk and fraud solutions.

While we acknowledge the potential of QTWO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.

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