Analysts Have Made A Financial Statement On Tata Consultancy Services Limited's (NSE:TCS) Yearly Report

As you might know, Tata Consultancy Services Limited (NSE:TCS) recently reported its yearly numbers. Tata Consultancy Services reported in line with analyst predictions, delivering revenues of ₹2.5t and statutory earnings per share of ₹126, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Tata Consultancy Services

After the latest results, the 39 analysts covering Tata Consultancy Services are now predicting revenues of ₹2.61t in 2025. If met, this would reflect a reasonable 6.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 11% to ₹141. In the lead-up to this report, the analysts had been modelling revenues of ₹2.63t and earnings per share (EPS) of ₹141 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of ₹4,130, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Tata Consultancy Services at ₹4,787 per share, while the most bearish prices it at ₹2,960. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. We would highlight that Tata Consultancy Services' revenue growth is expected to slow, with the forecast 6.2% annualised growth rate until the end of 2025 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.0% per year. Factoring in the forecast slowdown in growth, it seems obvious that Tata Consultancy Services is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 in mind, we wouldn't be too quick to come to a conclusion on Tata Consultancy Services. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Tata Consultancy Services analysts - going out to 2027, 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.

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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.