LTIMindtree Limited (NSE:LTIM) Third-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For Next Year

LTIMindtree Limited (NSE:LTIM) shareholders are probably feeling a little disappointed, since its shares fell 3.8% to ₹5,890 in the week after its latest quarterly results. It looks like the results were a bit of a negative overall. While revenues of ₹97b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.0% to hit ₹36.59 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for LTIMindtree

Following the latest results, LTIMindtree's 40 analysts are now forecasting revenues of ₹426.7b in 2026. This would be a meaningful 15% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 22% to ₹189. Before this earnings report, the analysts had been forecasting revenues of ₹427.2b and earnings per share (EPS) of ₹195 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹6,265, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 LTIMindtree analyst has a price target of ₹7,700 per share, while the most pessimistic values it at ₹4,595. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await LTIMindtree shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that LTIMindtree'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 29% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.1% annually. So it's pretty clear that, while LTIMindtree's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for LTIMindtree. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple LTIMindtree analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for LTIMindtree you should know about.

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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.