Xometry (XMTR) is back in focus after its 4 August 2026 earnings report, which showed higher quarterly and year to date sales, narrower net losses and an updated outlook for the rest of 2026.

Despite a 1 day share price return of down 5.7% to US$87.09 after the 4 August earnings release, Xometry’s year to date share price return of 38.8% and 1 year total shareholder return of 102.2% suggest momentum has been building over a longer window. The 3 year total shareholder return above 4x adds important context to the recent pullback.

If you like the AI angle behind Xometry’s marketplace, it can be useful to widen your watchlist to other AI focused opportunities through the 56 AI infrastructure stocks

The business case around Xometry looks strong after the latest results and guidance. After such a sharp multi year share price run and a 1 day pullback, the key question now is how that quality aligns with today’s valuation.

Most Popular Narrative: 9.5% Undervalued

The most followed narrative currently places Xometry’s fair value at $96.25, compared with the $87.09 last close, and frames that gap through aggressive growth and margin assumptions.

Accelerated adoption of digital platforms for manufacturing procurement, highlighted by growing enterprise engagement, robust increases in active buyers, and technology innovations such as instant quoting, expanded Teamspace, and deeper system integrations, is driving meaningful revenue growth and supporting expectations for continued top-line expansion.

The rapid deployment of AI and machine learning across pricing, supplier selection, and workflow automation is substantially improving efficiency, optimizing gross margin, and providing significant operating leverage, positioning the company for margin expansion and improving EBITDA.

Want to see what sits behind that fair value gap for Xometry? The narrative leans on robust revenue compounding, rising margins and a punchy earnings multiple. Curious which assumptions really move the model.

Result: Fair Value of $96.25 (UNDERVALUED)

However, the Xometry narrative also faces pressure if high tech spending fails to translate into sustained profitability, or if rising competition compresses marketplace margins faster than expected.

Another View on Xometry’s Valuation

The earlier narrative frames Xometry as undervalued against a fair value of $96.25 and also notes SWS DCF work that places future cash flow value at $114.34 with the stock at $87.09. That is a wide gap. It raises the question of which set of assumptions you find more realistic.

Next Steps

After considering the mixed sentiment around Xometry, it may be useful to move quickly, review the data yourself and decide where you stand using the 4 key rewards and 2 important warning signs

Looking for more investment ideas beyond Xometry?

If Xometry has sharpened your interest in fresh opportunities, do not stop here. Broaden your watchlist and give yourself more options to compare and consider.

• Target value first and see which companies combine quality fundamentals with pricing that may look appealing through the 51 high quality undervalued stocks.
• Prioritise resilience by scanning stocks that show sturdier financial footing using the solid balance sheet and fundamentals stocks screener (49 results).
• Hunt for potential future standouts by reviewing the screener containing 19 high quality undiscovered gems before the market starts paying closer attention.

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.