Q2 (NYSE:QTWO) Reaches New 1-Year Low on Analyst Downgrade

Q2 Holdings, Inc. (NYSE:QTWO)’s stock price hit a new 52-week low during mid-day trading on Thursday after Truist Financial lowered their price target on the stock from $110.00 to $75.00. Truist Financial currently has a buy rating on the stock. Q2 traded as low as $53.54 and last traded at $54.92, with a volume of 10272 shares trading hands. The stock had previously closed at $56.62.

Several other research firms have also issued reports on QTWO. Stifel Nicolaus lowered their price target on shares of Q2 from $110.00 to $90.00 and set a “buy” rating on the stock in a research report on Wednesday, October 15th. Royal Bank Of Canada lowered their price target on Q2 from $102.00 to $86.00 and set a “sector perform” rating on the stock in a research report on Thursday, November 6th. Cantor Fitzgerald reduced their price objective on Q2 from $110.00 to $90.00 and set an “overweight” rating on the stock in a research note on Wednesday, October 29th. Needham & Company LLC dropped their price target on shares of Q2 from $90.00 to $70.00 and set a “buy” rating for the company in a research report on Thursday. Finally, DA Davidson upgraded shares of Q2 from a “neutral” rating to a “buy” rating and set a $82.00 price target on the stock in a report on Tuesday, February 3rd. Nine investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, Q2 currently has a consensus rating of “Moderate Buy” and a consensus price target of $88.60.

Insider Buying and Selling at Q2

In related news, COO Himagiri K. Mukkamala sold 3,024 shares of the firm’s stock in a transaction that occurred on Wednesday, December 10th. The stock was sold at an average price of $73.68, for a total transaction of $222,808.32. Following the completion of the transaction, the chief operating officer owned 96,046 shares of the company’s stock, valued at $7,076,669.28. This trade represents a 3.05% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Kirk L. Coleman sold 8,559 shares of Q2 stock in a transaction on Wednesday, December 10th. The shares were sold at an average price of $73.68, for a total value of $630,627.12. Following the transaction, the insider owned 269,128 shares of the company’s stock, valued at $19,829,351.04. The trade was a 3.08% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 20,883 shares of company stock valued at $1,547,778. Corporate insiders own 0.31% of the company’s stock.

Q2 News Summary

Here are the key news stories impacting Q2 this week:

• Positive Sentiment: Strong top-line growth: Q4 revenue was $208.2M, up ~14% year‑over‑year; full‑year 2025 revenue was $794.8M (+14%). These results underline continued subscription expansion and higher recurring revenue. Business Wire: Q2 Results
• Positive Sentiment: Revenue guidance modestly constructive: FY‑2026 revenue was guided to $871.0M–$878.0M (roughly in line with the ~$873M consensus) and Q1‑2026 revenue was guided to $212.5M–$216.5M (above the ~$209.7M consensus) — signaling continued top‑line momentum.
• Neutral Sentiment: Operational catalysts remain: analysts and coverage pieces highlight subscription growth, cloud migration and AI initiatives as the multi‑year growth drivers and cross‑sell opportunities to expand margins over time. Yahoo Finance: Q4 Deep Dive
• Negative Sentiment: Mixed/weak earnings metrics pressured the stock: headlines show a GAAP EPS miss versus analyst expectations while adjusted/non‑GAAP metrics reportedly beat — the inconsistency created investor concern and volatility. Coverage noted the stock sell‑off despite the revenue beat. Investing.com: Shares Tumble
• Negative Sentiment: Management did not provide clear EPS guidance in the update (EPS fields were left blank in the initial guidance entries), which increases short‑term uncertainty around profitability and analyst modeling assumptions.
• Neutral Sentiment: Investor takeaway: the story remains revenue‑led with attractive secular drivers (SaaS + AI + cross‑sell), but near‑term stock moves are being driven by earnings clarity, GAAP vs. adjusted results, and the absence of explicit EPS guidance. For traders, the reaction reflects short‑term risk around margin/earnings visibility; for longer‑term investors the revenue/growth commentary remains constructive. Seeking Alpha: Earnings Call Transcript

Hedge Funds Weigh In On Q2

Hedge funds have recently bought and sold shares of the company. Swiss National Bank raised its holdings in Q2 by 2.0% in the 4th quarter. Swiss National Bank now owns 123,100 shares of the technology company’s stock worth $8,883,000 after acquiring an additional 2,400 shares during the last quarter. Nuveen LLC increased its position in Q2 by 19.0% in the fourth quarter. Nuveen LLC now owns 638,312 shares of the technology company’s stock worth $46,061,000 after buying an additional 101,986 shares in the last quarter. Inceptionr LLC bought a new stake in Q2 during the 4th quarter worth approximately $321,000. Illinois Municipal Retirement Fund purchased a new position in shares of Q2 during the 4th quarter valued at $2,360,000. Finally, Deutsche Bank AG lifted its holdings in shares of Q2 by 4.1% in the fourth quarter. Deutsche Bank AG now owns 54,105 shares of the technology company’s stock worth $3,904,000 after buying an additional 2,110 shares in the last quarter.

Q2 Stock Down 2.6%

The company has a market capitalization of $3.45 billion, a PE ratio of 113.97 and a beta of 1.36. The company’s 50 day moving average is $68.50 and its two-hundred day moving average is $71.17.

Q2 Company Profile

Q2 Holdings, Inc develops and delivers cloud-based digital banking solutions that enable banks and credit unions to enhance customer and member experiences. The company’s core offerings include the Q2 Platform, a comprehensive suite of online and mobile banking applications for retail and commercial customers, as well as digital onboarding, payments, and fraud prevention tools. Q2’s platform also provides analytics and reporting capabilities designed to help financial institutions tailor products, optimize workflows, and drive engagement.

Founded in 2004 and headquartered in Austin, Texas, Q2 serves hundreds of financial institutions across the United States and Canada.