Deluxe (DLX) is in focus after raising its full year 2026 revenue guidance to a range of $2.095b to $2.120b, along with fresh quarterly earnings and a reaffirmed cash dividend.

Alongside the updated 2026 guidance, Deluxe’s stock has cooled in the short term, with the 1 month share price return down 5.8% and the 7 day share price return down 3.8%. However, the 1 year total shareholder return of 31.6% and 3 year total shareholder return of 41.9% indicate that longer term investors have still seen meaningful gains.

If these guidance changes have you thinking about where else you might find opportunity, this is also a good time to scan the market for other payment and data focused firms and check out 20 top founder-led companies

Deluxe has raised its 2026 revenue guidance, yet the share price has eased back. This leaves a wide gap to published fair value estimates. Is the stock pricing in too much caution or too little?

Most Popular Narrative: 26.4% Undervalued

At a last close of $24.05 versus a narrative fair value of $32.67, Deluxe is framed as materially undervalued, with the thesis leaning heavily on its shift toward payments and data driven revenue.

Ongoing shift to electronic and cloud based B2B payments offers Deluxe scalable long term growth via its Digital Payment Network and recent bolt on acquisition (Check Match), positioning the company to benefit as physical check usage declines and digital payment volumes increase, supporting future recurring revenue streams and higher gross margins.

Want to see what underpins that valuation gap? The core story revolves around changing revenue mix, higher margins and a future earnings profile that looks very different to today.

Result: Fair Value of $32.67 (UNDERVALUED)

However, Deluxe still faces meaningful print related pressure and rising competition from fintechs, which could limit the extent to which payments and data can reshape the story.

Next Steps

Mixed messages around Deluxe can make the next step feel uncertain, so do not wait around. Review both sides of the story and weigh up the 6 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.