Stock Analysis

Analysts Have Made A Financial Statement On Wise plc's (LON:WISE) Yearly Report

LSE:WISE
Source: Shutterstock

Last week saw the newest annual earnings release from Wise plc (LON:WISE), an important milestone in the company's journey to build a stronger business. The result was positive overall - although revenues of UK£1.6b were in line with what the analysts predicted, Wise surprised by delivering a statutory profit of UK£0.40 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

earnings-and-revenue-growth
LSE:WISE Earnings and Revenue Growth June 21st 2025

Taking into account the latest results, the most recent consensus for Wise from 14 analysts is for revenues of UK£1.84b in 2026. If met, it would imply a decent 12% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to fall 14% to UK£0.35 in the same period. In the lead-up to this report, the analysts had been modelling revenues of UK£1.83b and earnings per share (EPS) of UK£0.35 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.

View our latest analysis for Wise

The analysts reconfirmed their price target of UK£11.84, 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 Wise analyst has a price target of UK£14.20 per share, while the most pessimistic values it at UK£7.50. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wise's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Wise's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 12% growth on an annualised basis. This is compared to a historical growth rate of 33% over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 18% annually. So it's clear that despite the slowdown in growth, Wise is still expected to grow meaningfully faster than the wider industry.

Advertisement

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that Wise's revenue is expected to perform better than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Wise. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Wise going out to 2028, and you can see them free on our platform here..

We also provide an overview of the Wise Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

Valuation is complex, but we're here to simplify it.

Discover if Wise might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

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

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.