₹3,890: That's What Analysts Think Tata Consultancy Services Limited (NSE:TCS) Is Worth After Its Latest Results

Tata Consultancy Services Limited (NSE:TCS) shareholders are probably feeling a little disappointed, since its shares fell 2.1% to ₹3,232 in the week after its latest full-year results. Results were roughly in line with estimates, with revenues of ₹2.6t and statutory earnings per share of ₹134. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the consensus forecast from Tata Consultancy Services' 43 analysts is for revenues of ₹2.65t in 2026. This reflects an okay 4.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 6.6% to ₹143. Before this earnings report, the analysts had been forecasting revenues of ₹2.72t and earnings per share (EPS) of ₹150 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

View our latest analysis for Tata Consultancy Services

It'll come as no surprise then, to learn that the analysts have cut their price target 8.5% to ₹3,890. 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. Currently, the most bullish analyst values Tata Consultancy Services at ₹5,420 per share, while the most bearish prices it at ₹3,000. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Tata Consultancy Services' revenue growth is expected to slow, with the forecast 4.0% annualised growth rate until the end of 2026 being well below the historical 11% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.1% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Tata Consultancy Services.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Tata Consultancy Services. 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 fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Tata Consultancy Services' future valuation.

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 Tata Consultancy Services analysts - going out to 2028, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Tata Consultancy Services 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.