Results: Kubota Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts

Kubota Corporation (TSE:6326) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of JP¥749b, some 3.1% above estimates, and statutory earnings per share (EPS) coming in at JP¥43.50, 38% ahead of expectations. 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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Following the latest results, Kubota's 13 analysts are now forecasting revenues of JP¥3.09t in 2026. This would be a satisfactory 5.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 5.3% to JP¥162. In the lead-up to this report, the analysts had been modelling revenues of JP¥3.08t and earnings per share (EPS) of JP¥160 in 2026. 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.

View our latest analysis for Kubota

The analysts reconfirmed their price target of JP¥2,135, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values Kubota at JP¥2,700 per share, while the most bearish prices it at JP¥1,700. 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 Kubota shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Kubota's revenue growth is expected to slow, with the forecast 4.0% annualised growth rate until the end of 2026 being well below the historical 10% 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 5.0% per year. Factoring in the forecast slowdown in growth, it seems obvious that Kubota 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. The consensus price target held steady at JP¥2,135, 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. At Simply Wall St, we have a full range of analyst estimates for Kubota going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Kubota that you should be aware of.

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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.