Does Strong Q1 Metrics and BradyScan Launch Change The Bull Case For Brady (BRC)?

• In the past quarter, Brady reported 8% growth in adjusted diluted EPS and a 42.5% increase in operating cash flow for Q1 fiscal 2026, raised the lower end of its full-year EPS guidance, and unveiled its new BradyScan app to strengthen its connected product suite.
• Beyond the headline earnings lift, the combination of tighter cost controls and the BradyScan launch highlights how Brady is pairing efficiency gains with digital product innovation to support its longer-term transition toward higher-value, software-enabled identification solutions.
• Next, we’ll examine how the EPS guidance increase and BradyScan launch influence Brady’s existing investment narrative around innovation and margins.

These 12 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.

Brady Investment Narrative Recap

To own Brady, you have to believe it can steadily shift from traditional labels toward higher value, software-enabled identification while keeping margins resilient despite trade and tariff headwinds. The latest quarter’s EPS growth, stronger cash generation, and slightly higher EPS guidance support the near term margin story, but do not remove the key risk that low single digit organic growth and weakness in Europe and Australia could cap the upside if demand softens further.

The BradyScan launch is the clearest recent proof point for that higher value, connected-solutions narrative, because it ties together barcode creation, scanning, printing, and location tracking in a single workflow. If Brady can keep layering similar software and data capabilities onto its installed base of printers and consumables, that could gradually ease concerns that around 40% of revenue is still tied to more traditional, potentially slower growth labeling categories.

Yet behind the solid cash flow and new app launch, there is a risk investors should be aware of if...

Read the full narrative on Brady (it's free!)

Brady's narrative projects $1.7 billion revenue and $271.5 million earnings by 2028. This requires 4.1% yearly revenue growth and an earnings increase of about $83 million from $188.5 million today.

Uncover how Brady's forecasts yield a $95.00 fair value, a 21% upside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community span roughly US$38 to US$132 per share, showing how far apart individual views can be. When you set those side by side with Brady’s reliance on cost cuts and facility consolidation to support margins, it becomes even more important to examine several independent perspectives on how durable its earnings power really is.

Explore 3 other fair value estimates on Brady - why the stock might be worth as much as 68% more than the current price!

Build Your Own Brady Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Brady research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Brady research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Brady's overall financial health at a glance.

No Opportunity In Brady?

The market won't wait. These fast-moving stocks are hot now. Grab the list before they run:

• We've found 14 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
• The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 24 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.
• Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com