Q2 (US:QTWO) ZACKS·2025-11-06 01:16Core Insights - Q2 Holdings reported quarterly earnings of $0.57 per share, exceeding the Zacks Consensus Estimate of $0.55 per share, and showing a significant increase from $0.28 per share a year ago, resulting in an earnings surprise of +3.64% [1][2] - The company achieved revenues of $201.7 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.15% and up from $175.02 million year-over-year [2] - Q2 Holdings has outperformed consensus revenue estimates four times over the last four quarters, although it has underperformed the market with a 39.9% decline in share price since the beginning of the year compared to the S&P 500's gain of 15.1% [2][3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.57 on revenues of $203.1 million, and for the current fiscal year, it is $2.21 on revenues of $785.44 million [7] - The estimate revisions trend for Q2 Holdings was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Internet - Software industry, to which Q2 Holdings belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting that stocks in the top 50% of Zacks-ranked industries tend to outperform those in the bottom 50% by more than 2 to 1 [8]