What AvePoint’s latest earnings mean for shareholders

AvePoint (AVPT) reported material first quarter 2026 results, combining double digit organic growth in annual recurring revenue with wider operating margins and higher profitability, while raising full year guidance and tying that outlook to demand for AI ready data management.

AvePoint’s recent earnings beat and AI focused product updates have come after a weak spell. A 7 day share price return of 5.85% contrasts with a year to date share price return of 21.94% decline and a 1 year total shareholder return of 40.69% decline, while the 3 year total shareholder return of 100% shows how volatile the journey has been.

If AvePoint’s AI ready data story has your attention, it can be useful to see what else is gaining traction in the space using our screener for 40 AI infrastructure stocks

With AvePoint trading at US$10.32 and internal estimates implying a sizeable intrinsic discount, along with a large gap to the average analyst target, you have to ask: is this an overlooked AI data play or is the market already pricing in future growth?

Most Popular Narrative: 37.4% Undervalued

With AvePoint last closing at $10.32 against a widely followed fair value estimate of $16.48, the central question is whether the growth and AI governance story can support that gap.

The accelerating enterprise adoption of AI tools like Microsoft Copilot, alongside increasing security and data governance challenges, is positioning AvePoint's data management and governance solutions as mission-critical, driving robust customer expansions and higher spending per customer, which is described as a catalyst for sustained revenue growth and stronger net retention rates.

Want to understand why this narrative points to a much higher fair value? The story leans on ambitious revenue compounding, fatter profit margins, and a punchy future earnings multiple. Curious which assumptions have to hold for that to add up?

Result: Fair Value of $16.48 (UNDERVALUED)

However, the story can break if Microsoft reduces reliance on third party tools, or if lower margin services keep outpacing software. This would challenge the current upside case.

Another Angle on Valuation

The narrative points to AvePoint trading 37.4% below a fair value estimate of $16.48, yet the current P/E of 64x tells a sharper story. That is more than double the US Software industry at 29.3x, above peers at 29.7x, and also ahead of a 32.2x fair ratio. For investors, that gap can look like optimism baked into the price as much as opportunity. The key question is which signal earns more of your trust?

Next Steps

With mixed signals on value and expectations running high, it helps to check the underlying data yourself and see which side of the story feels stronger, then weigh 3 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.