Q2 Holdings Inc (QTWO) stock is soaring 5.73% in pre-market trading on Thursday following the release of its impressive first-quarter earnings report and raised full-year guidance. The digital banking technology company has surpassed analyst expectations, demonstrating strong financial performance and growth prospects.

Q2 Holdings reported Q1 earnings of $0.54 per diluted share, significantly beating the analyst consensus of $0.47 and marking a substantial improvement from the $0.30 per share reported in the same quarter last year. The company's revenue for the quarter reached $189.7 million, surpassing the expected $186.7 million and showing a 14.6% year-over-year increase. In light of these strong results, Q2 Holdings has raised its 2025 revenue guidance to between $776 million and $783 million, up from its previous forecast of $772 million to $779 million.

The positive earnings report has prompted several analysts to adjust their price targets for Q2 Holdings. While Raymond James slightly lowered its target to $105 from $110, other firms have raised their expectations. Morgan Stanley increased its target price to $93.00 from $89.00, and Stifel raised its target to $105 from $100. Needham, despite cutting its target to $110 from $125, maintained a Buy rating on the stock. The current average analyst rating remains a "Buy," with a median 12-month price target of $101.00, reflecting continued confidence in the company's growth trajectory and market position in the digital banking technology sector.