Earnings Update: Here's Why Analysts Just Lifted Their GlaxoSmithKline Pharmaceuticals Limited (NSE:GLAXO) Price Target To ₹3,072

GlaxoSmithKline Pharmaceuticals Limited (NSE:GLAXO) just released its latest full-year results and things are looking bullish. The company beat expectations with revenues of ₹39b arriving 3.6% ahead of forecasts. Statutory earnings per share (EPS) were ₹54.76, 3.5% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the most recent consensus for GlaxoSmithKline Pharmaceuticals from four analysts is for revenues of ₹41.1b in 2026. If met, it would imply a reasonable 5.5% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 12% to ₹61.38. In the lead-up to this report, the analysts had been modelling revenues of ₹41.3b and earnings per share (EPS) of ₹59.40 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

View our latest analysis for GlaxoSmithKline Pharmaceuticals

The consensus price target rose 17% to ₹3,072, suggesting that higher earnings estimates flow through to the stock's valuation as well. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic GlaxoSmithKline Pharmaceuticals analyst has a price target of ₹3,500 per share, while the most pessimistic values it at ₹2,600. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting GlaxoSmithKline Pharmaceuticals' growth to accelerate, with the forecast 5.5% annualised growth to the end of 2026 ranking favourably alongside historical growth of 3.1% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 10% per year. So it's clear that despite the acceleration in growth, GlaxoSmithKline Pharmaceuticals is expected to grow meaningfully slower than the industry average.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around GlaxoSmithKline Pharmaceuticals' earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that GlaxoSmithKline Pharmaceuticals' revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on GlaxoSmithKline Pharmaceuticals. Long-term earnings power is much more important than next year's profits. We have forecasts for GlaxoSmithKline Pharmaceuticals going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - GlaxoSmithKline Pharmaceuticals has 1 warning sign we think you should be aware 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.