Pitney Bowes Inc. PBI is seeing improving trends within its SendTech segment, raising the question of whether stronger bookings can support a broader recovery in the business.
The segment has faced pressure for several years as traditional mail-related activity continued to decline. However, recent results suggest that some of those headwinds may be moderating. SendTech revenues declined less than 1% year over year in the first quarter of 2026, while bookings increased from the prior-year period for the first time in several years. Growth in paid software subscriptions also points to improving customer demand and a larger base of recurring revenues.
The improvement appears to be supported by several operational initiatives. Greater emphasis on customer retention, including outreach to customers considering cancellation and the use of predictive analytics to identify at-risk accounts, could help reduce customer losses. At the same time, renewed efforts around customer acquisition and sales execution may be contributing to stronger booking trends.
Shipping software is emerging as another area of focus. Pitney Bowes is simplifying its product offerings and aligning product development more closely with customer needs. The company is also leveraging its banking platform to provide financing-related solutions that many competitors cannot easily match. These efforts could enhance the value proposition of SendTech’s software offerings and support recurring revenue growth.
The significance of stronger bookings extends beyond the current quarter. New bookings create opportunities for future stream revenues, including software subscriptions and other recurring services. Improving sales pipelines and higher booking activity also suggest that customer engagement is moving in a favorable direction.
Although SendTech continues to operate in a challenging market, improving bookings, subscription growth and stronger sales activity indicate that business conditions may be becoming more favorable. Continued progress in these areas could determine whether the segment moves from stabilization toward sustainable growth.
PBI’s Stock Price Performance & Valuation Trend
Shares of Pitney Bowes have increased 70.1% in the past six months, outperforming the Zacks Computer and Technology sector’s 19.1% rise. In the same time frame, other industry players like FedEx FDX and United Parcel Service UPS have gained 18.6% and 15.4%, respectively.
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PBI stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 9.97, as evidenced by the chart below. Conversely, industry players, such as FedEx and United Parcel Service, have P/E multiples of 16.68 and 14.81, respectively.
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Earnings Estimate Revision of PBI
PBI’s earnings estimates for 2026 and 2027 have trended upward in the past 30 days to $1.62 and $1.76 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 20% and 8.4%, respectively.
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PBI currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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This article originally published on Zacks Investment Research (zacks.com).