Earnings Update: LY Corporation (TSE:4689) Just Reported Its Yearly Results And Analysts Are Updating Their Forecasts

The full-year results for LY Corporation (TSE:4689) were released last week, making it a good time to revisit its performance. LY reported in line with analyst predictions, delivering revenues of JP¥1.9t and statutory earnings per share of JP¥21.00, 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the most recent consensus for LY from twelve analysts is for revenues of JP¥2.06t in 2026. If met, it would imply a credible 7.7% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 12% to JP¥24.14. In the lead-up to this report, the analysts had been modelling revenues of JP¥2.07t and earnings per share (EPS) of JP¥23.50 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for LY

There's been no major changes to the consensus price target of JP¥541, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on LY, with the most bullish analyst valuing it at JP¥650 and the most bearish at JP¥300 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the LY's past performance and to peers in the same industry. It's pretty clear that there is an expectation that LY's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 7.7% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.3% annually. Factoring in the forecast slowdown in growth, it looks like LY is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards LY following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 LY. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for LY going out to 2028, and you can see them free on our platform here..

You can also see whether LY is carrying too much debt, and whether its balance sheet is healthy, for free 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.