Opera’s Q1 Beat and Capital Return Plans Put Focus on AI and Cash Use

Opera (OPRA) reported Q1 2026 revenue and adjusted EBITDA above the high end of its guidance, raised full year forecasts, and announced a US$300 million buyback alongside its recurring dividend.

Despite the Q1 beat and new AI browser features, Opera’s share price has eased about 3% over the past month but is still up roughly 21% over 90 days and 28% year to date, while the five year total shareholder return of about 120% points to a very different long term experience.

If Opera’s AI push has caught your attention, it could be a good moment to see what else is shaping the space through our screener of 62 profitable AI stocks that aren't just burning cash

With Opera trading at US$18.17, sitting on annual revenue of US$647.941 million, net income of US$114.785 million, and a value score of 6, is the current price a mispricing, or is the market already baking in future growth?

Most Popular Narrative: 15.5% Undervalued

Opera’s most followed valuation narrative pegs fair value at $21.50, above the last close at $18.17. This puts the spotlight on what is driving that gap.

While Opera is well positioned to capture the proliferation of AI-powered browsing and cross-platform synergy with upcoming launches like Neon and continued feature innovations, escalating competition from both incumbent browsers and AI services natively integrated into operating systems may quickly commoditize these advantages, potentially limiting Opera's capacity to grow average revenue per user and compressing long-term earnings growth.

Curious what has to happen for that $21.50 fair value to hold up? The narrative leans on steady top line expansion, firmer margins, and a future earnings multiple that sits below many software peers.

Result: Fair Value of $21.50 (UNDERVALUED)

However, there are still clear pressure points, including heavier AI and MiniPay investment needs, as well as Opera’s reliance on a small group of search and advertising partners.

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Next Steps

Does the mix of optimism and concern in this story match your own read of Opera's numbers? If you want a sharper view of what could go right and what could go wrong from here, take a moment to review the 5 key rewards and 1 important warning sign.

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This article by Simply Wall St is general in nature. 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. 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.