Cantor Fitzgerald lowered its 12-month price target on Q2 Holdings (NYSE: QTWO) to $80.00 from $90.00 on Thursday, while retaining an Overweight recommendation on the financial technology provider. At the time the research note was published, the stock was trading at $54.59, close to its 52-week low of $54.63, and had fallen 21.54% year-to-date.
The brokerage highlighted Q2’s recent operating momentum, pointing to one of the company’s best-ever bookings quarters that included eight Tier-1/Enterprise deals. Cantor noted a healthy mix of new client wins and expansion activity across all of Q2’s business segments. Those wins are consistent with the company’s 13.93% revenue growth over the trailing twelve months, and analysts cited in the note expect Q2 to remain profitable this year.
In its assessment, Cantor Fitzgerald emphasized the widening functionality of Q2’s platform as a key element supporting the firm’s outlook. The research team called out notable momentum in Q2’s Commercial offering and reported rising attach rates for two add-ons - Fraud Tech and the Innovation Studio. Cantor framed the company as well-positioned to supply financial institutions with an expanding suite of tools as they adopt next-generation, AI-enabled capabilities - with Q2’s embedded customer data serving as contextual input for those tools.
Management at Q2 responded to the quarter by increasing its prior subscription revenue guidance for 2026 and providing what Cantor described as "constructive 2027 targets." Those upward revisions and forward targets were cited by Cantor as supporting its retained Overweight rating, even as the firm trimmed its price target.
Q2’s fourth-quarter results produced a mixed picture. The company reported a notable miss on earnings per share relative to analysts’ expectations. Despite that EPS shortfall, several operating metrics exceeded forecasts. Total revenue and adjusted EBITDA came in above DA Davidson’s projections by 5% and 12%, respectively. Subscription revenue grew 16% year-over-year, and Q2 continued to expand both gross and adjusted EBITDA margins.
Broker responses to the quarterly report varied. DA Davidson reiterated a Buy rating and set a price target of $82. Truist Securities also kept a Buy rating but trimmed its price target to $75, citing concerns about valuation compression in the software sector. Needham lowered its target to $70 from $90, attributing the move to multiple compression while maintaining a Buy stance. Taken together, these moves show divergent analyst views on valuation and near-term prospects despite consistent acknowledgement of revenue and margin progress.
The juxtaposition of strong bookings and subscription growth against an EPS miss has produced a nuanced reception from the market and sell-side analysts. Cantor Fitzgerald’s reduction in price target, paired with continued conviction in Q2’s platform momentum and raised subscription guidance, encapsulates the mixed signals investors are weighing.