Here is Why Piper Sandler Named Q2 Holdings (QTWO) Its Top Pick

On September 10, Piper Sandler analyst Bill Carcache began covering Q2 Holdings, Inc. (NYSE:QTWO), designating the stock as its top pick in the payments and consumer finance sector. The research firm assigned an Overweight rating and set a price target of $82 per share. According to Piper Sandler, Q2 Holdings, Inc. stands out among its competitors due to its strong combination of subscription revenue growth, visibility into annual recurring revenue, and improving free cash flow conversion.

The firm also noted the company's growing margins and its debt-free balance sheet, which they believe represent the clearest path to durable growth in the sector. Q2 Holdings, Inc. reported robust financial performance in Q2 2026, with revenue rising 13% year-over-year to $219.8 million, and GAAP net income increasing to $29.9 million.

Adjusted EBITDA hit a record $62.8 million, up 37% compared to the previous year. The company's subscription annualized recurring revenue grew 15% year-over-year to $825.5 million. Q2 Holdings, Inc. also secured eight Tier 1 and enterprise wins during the quarter, indicating strong demand for its solutions. However, total non-subscription revenue remained relatively flat as higher transactional revenue was offset by continued pressure in discretionary professional services.

Operating expenses also increased year-over-year due to higher research and development costs for product and AI investments. Despite a decline in hedge fund interest in Q2 Holdings, Inc. during the second quarter, analysts maintain a bullish outlook on the stock. As of September 11, the consensus rating for Q2 Holdings, Inc. was a Buy, with a median 12-month price target of $75, representing a potential upside of approximately 23.17% from the current stock price.