Oracle Financial Services Software Limited Just Missed Earnings - But Analysts Have Updated Their Models

The analyst might have been a bit too bullish on Oracle Financial Services Software Limited (NSE:OFSS), given that the company fell short of expectations when it released its third-quarter results last week. Oracle Financial Services Software missed earnings this time around, with ₹17b revenue coming in 3.0% below what the analyst had modelled. Statutory earnings per share (EPS) of ₹61.99 also fell short of expectations by 13%. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Oracle Financial Services Software after the latest results.

Check out our latest analysis for Oracle Financial Services Software

Taking into account the latest results, the current consensus from Oracle Financial Services Software's solitary analyst is for revenues of ₹76.2b in 2026. This would reflect a solid 13% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 17% to ₹309. In the lead-up to this report, the analyst had been modelling revenues of ₹79.0b and earnings per share (EPS) of ₹326 in 2026. The analyst are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

The analyst made no major changes to their price target of ₹11,400, suggesting the downgrades are not expected to have a long-term impact on Oracle Financial Services Software's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Oracle Financial Services Software's past performance and to peers in the same industry. The analyst is definitely expecting Oracle Financial Services Software's growth to accelerate, with the forecast 9.9% annualised growth to the end of 2026 ranking favourably alongside historical growth of 7.2% 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 15% per year. So it's clear that despite the acceleration in growth, Oracle Financial Services Software is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at ₹11,400, with the latest estimates not enough to have an impact on their price target.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Oracle Financial Services Software going out as far as 2027, 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 1 warning sign for Oracle Financial Services Software that you need to be mindful of.

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.