5 Best Underperforming Tech Stocks to Buy for a Turnaround

3. Q2 Holdings, Inc. (NYSE:QTWO)

Short Percentage of Float: 3.87%

Q2 Holdings, Inc. (NYSE:QTWO) is one of the best underperforming tech stocks to buy for a turnaround. The digital banking software company fits the setup after a sharp reset: QTWO closed at $46.88 on May 18, compared with a 52-week high of $96.68, while analysts still carried a Buy rating and an average price target of $74.31. That leaves the stock priced for skepticism, but not without recovery fuel.

The latest fundamental support came on April 29, when Q2 reported first-quarter revenue of $216.5 million, up 14% year-over-year, and adjusted EBITDA of $60.0 million, up from $40.7 million a year earlier. The company also said it signed nine Enterprise and Tier 1 contracts in the quarter, posted record first-quarter bookings, and lifted its 2026 guidance to revenue of $875 million to $882 million and adjusted EBITDA of $237 million to $242 million.

Q2 has also been pushing the AI angle into practical banking use cases. On April 28, it launched Q2 Treasury Fulfillment to automate treasury-service onboarding for commercial clients, and on April 27, it added AI-enabled account takeover protection tools for real-time fraud detection and response. Earlier, on April 16, Q2 announced Q2 Code, a governed AI development environment built with Anthropic’s Claude Code and Amazon Bedrock to help financial institutions build platform extensions faster.

Q2 Holdings, Inc. (NYSE:QTWO) provides digital transformation solutions for banks, credit unions, alternative finance companies, and fintechs, including digital banking, fraud prevention, and data-driven engagement tools for consumer, small-business, and commercial clients.