Hexaware Technologies Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Investors in Hexaware Technologies Limited (NSE:HEXT) had a good week, as its shares rose 8.5% to close at ₹486 following the release of its first-quarter results. The result was positive overall - although revenues of ₹36b were in line with what the analysts predicted, Hexaware Technologies surprised by delivering a statutory profit of ₹5.71 per share, modestly greater than expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Hexaware Technologies after the latest results.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Following the latest results, Hexaware Technologies' 15 analysts are now forecasting revenues of ₹152.1b in 2026. This would be a notable 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 7.6% to ₹24.62. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹149.1b and earnings per share (EPS) of ₹23.61 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

View our latest analysis for Hexaware Technologies

Despite these upgrades,the analysts have not made any major changes to their price target of ₹560, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Hexaware Technologies analyst has a price target of ₹830 per share, while the most pessimistic values it at ₹455. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Hexaware Technologies' growth to accelerate, with the forecast 14% annualised growth to the end of 2026 ranking favourably alongside historical growth of 11% per annum over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Hexaware Technologies is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Hexaware Technologies following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at ₹560, 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. We have estimates - from multiple Hexaware Technologies analysts - going out to 2028, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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.