Blackbaud's stock price soared 5.08% during intraday trading on Wednesday, following the release of its first-quarter financial results.

The social impact software provider reported adjusted earnings per share of $1.14 for the quarter, beating analyst estimates of $1.12. Revenue rose to $281.1 million, also surpassing expectations of $279.8 million and representing a 4.2% year-over-year increase. Key drivers included a 5% growth in recurring revenue, which now constitutes 98.3% of total revenue, and early customer interest in the company's new AI product, Development Agent.

Additionally, Blackbaud reaffirmed its full-year 2026 guidance, expecting adjusted EPS in the range of $5.15 to $5.25 and revenue between $1.173 billion and $1.179 billion. This combination of better-than-expected quarterly performance and maintained optimistic outlook for the year ahead appears to have fueled investor confidence, driving the stock's significant upward movement.