Pernod Ricard SA (EPA:RI) Yearly Results: Here's What Analysts Are Forecasting For This Year

Shareholders might have noticed that Pernod Ricard SA (EPA:RI) filed its yearly result this time last week. The early response was not positive, with shares down 2.5% to €97.20 in the past week. It was a credible result overall, with revenues of €11b and statutory earnings per share of €6.45 both in line with analyst estimates, showing that Pernod Ricard is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus, from the 17 analysts covering Pernod Ricard, is for revenues of €10.2b in 2026. This implies a noticeable 6.7% reduction in Pernod Ricard's revenue over the past 12 months. Statutory earnings per share are expected to reduce 4.6% to €6.16 in the same period. Before this earnings report, the analysts had been forecasting revenues of €10.3b and earnings per share (EPS) of €6.28 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for Pernod Ricard

The analysts reconfirmed their price target of €110, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Pernod Ricard analyst has a price target of €156 per share, while the most pessimistic values it at €87.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 6.7% by the end of 2026. This indicates a significant reduction from annual growth of 7.0% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 1.8% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Pernod Ricard is expected to lag the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Pernod Ricard's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €110, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Pernod Ricard going out to 2028, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 2 warning signs for Pernod Ricard (1 can't be ignored!) that you need to be mindful of.

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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.