<div id="readability-page-1"><div><p>Arlo Technologies (ARLO) drew fresh attention after Q1 2026 results topped Wall Street expectations, with 26% year over year revenue growth, stronger subscriptions and services, and a new US$50 million share buyback.</p> <p>See our latest analysis for Arlo Technologies.</p> <p>The Q1 beat and buyback news landed against a backdrop of firm momentum, with a 90 day share price return of 20.16% and a 1 year total shareholder return of 40.04%, while the 3 year total shareholder return of 111.35% points to a stock that has already rewarded patient holders.</p> <p>If Arlo’s recent move has you rethinking where growth might come from next, it could be worth lining up other opportunities in AI driven infrastructure using the 40 AI infrastructure stocks</p> <p>With Q1 numbers ahead of forecasts, a turnaround from last year’s loss to a US$14.9 million profit, and the stock still trading around a 43% discount to one valuation estimate, investors may be wondering whether there is genuine upside left here or whether the market is already pricing in future growth.</p> <h2>Most Popular Narrative: 30.7% Undervalued</h2> <p>With Arlo trading at $14.90 against a narrative fair value of $21.50, the widely followed view sees a gap that hinges on subscriptions and ecosystem growth.</p> <blockquote> <p><em>Continual migration of subscribers to higher-priced AI-driven service tiers (Arlo Secure 6) and the corresponding increase in ARPU (now over $15, up 26% y/y) reinforces the long-term shift to recurring, high-margin (85% non-GAAP service margin) subscription revenue, supporting expanding net margins and earnings visibility.</em></p> </blockquote> <p><em>Read the complete narrative.</em></p> <p>Want to see why this narrative leans so heavily on subscription mix, margin expansion, and future earnings power, rather than hardware sales alone? The full story joins revenue assumptions, profit margin targets, and a future earnings multiple that is far from conservative into one tight valuation case.</p> <p><strong>Result: Fair Value of $21.50 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, this hinges on consumers sticking with recurring fees and international revenue stabilizing, as weaker demand or pricing pressure could quickly challenge the current thesis.</p> <p>Find out about the key risks to this Arlo Technologies narrative.</p> <h2>Another Take: Rich P/E Against Peers</h2> <p>The narrative fair value of $21.50 presents Arlo as undervalued. However, the current P/E of 108.8x is far higher than both the US Electronic industry at 27.7x and the peer average at 62.9x, and also more than double the fair ratio of 51.4x. That gap points to meaningful valuation risk if sentiment cools or growth expectations reset. Which signal do you trust most?</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/3ef3fddd-b656-40e5-995b-965d7a58ccb8/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTA1LTEw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/3ef3fddd-b656-40e5-995b-965d7a58ccb8/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTA1LTEw"/><figcaption>NYSE:ARLO P/E Ratio as at May 2026</figcaption></figure><h2>Next Steps</h2> <p>With mixed signals on valuation, growth, and risk, the real question is how this all lines up for you. If you want to weigh both sides before reacting to the latest move, start by reviewing the 4 key rewards and 2 important warning signs.</p> <h2>Ready to hunt for your next opportunity?</h2> <p>If Arlo has your attention, do not stop here, your next strong idea could be sitting in plain sight among other stocks with very different profiles.</p> <ul> <li>Target resilient balance sheets by scanning companies in the solid balance sheet and fundamentals stocks screener (44 results) so you are not caught off guard by hidden financial strain.</li> <li>Spot potential value candidates early by reviewing the 51 high quality undervalued stocks before other investors start paying closer attention.</li> <li>Lock in income focused ideas by checking the 12 dividend fortresses and make sure you are not missing out on reliable cash returns.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data         and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your         financial situation. We aim to bring you long-term focused analysis driven by fundamental data.         Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.         Simply Wall St has no position in any stocks mentioned.</em></p><div><h3><strong>New: </strong>Manage All Your Stock Portfolios in One Place</h3><p>We've created the <strong>ultimate portfolio companion</strong> for stock investors, <strong>and it's free.</strong></p><p>• Connect an unlimited number of Portfolios and see your total in one currency<br/>• Be alerted to new Warning Signs or Risks via email or mobile<br/>• Track the Fair Value of your stocks<br/></p><p>Try a Demo Portfolio for Free</p></div></div></div>

ARLO

<p>Arlo Technologies (ARLO) reported strong Q1 2026 results, exceeding Wall Street expectations with a 26% year-over-year revenue growth and a new US$50 million share buyback. The stock has shown a 20.16% return over 90 days and a 40.04% return over the past year. Despite being undervalued at a fair value of $21.50, Arlo's high P/E ratio of 108.8x raises concerns about valuation risks. Investors are advised to consider both growth potential and risks before making decisions.</p>

A Look At Arlo Technologies (ARLO) Valuation After Strong Q1 Beat And New US$50 Million Buyback