Fanuc Corporation Just Beat EPS By 13%: Here's What Analysts Think Will Happen Next

Fanuc Corporation (TSE:6954) investors will be delighted, with the company turning in some strong numbers with its latest results. Fanuc beat earnings, with revenues hitting JP¥408b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 13%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following last week's earnings report, Fanuc's 22 analysts are forecasting 2026 revenues to be JP¥819.6b, approximately in line with the last 12 months. Statutory per share are forecast to be JP¥171, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥817.2b and earnings per share (EPS) of JP¥166 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for Fanuc

There's been no major changes to the consensus price target of JP¥5,080, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Fanuc at JP¥6,000 per share, while the most bearish prices it at JP¥4,100. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Fanuc's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Fanuc's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 0.7% growth on an annualised basis. This is compared to a historical growth rate of 7.5% 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 4.9% per year. Factoring in the forecast slowdown in growth, it seems obvious that Fanuc is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Fanuc's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Fanuc's revenue is expected to 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.

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 estimates - from multiple Fanuc analysts - going out to 2028, and you can see them free on our platform here.

Even so, be aware that Fanuc is showing 1 warning sign in our investment analysis , 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.