Daiichi Sankyo Company, Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

As you might know, Daiichi Sankyo Company, Limited (TSE:4568) just kicked off its latest yearly results with some very strong numbers. The company beat forecasts, with revenue of JP¥1.9t, some 2.0% above estimates, and statutory earnings per share (EPS) coming in at JP¥156, 21% 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've discovered 2 warning signs about Daiichi Sankyo Company. View them for free.

Taking into account the latest results, the consensus forecast from Daiichi Sankyo Company's 15 analysts is for revenues of JP¥2.10t in 2026. This reflects a solid 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decrease 2.6% to JP¥155 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥2.12t and earnings per share (EPS) of JP¥146 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

View our latest analysis for Daiichi Sankyo Company

There's been no major changes to the consensus price target of JP¥5,936, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. There are some variant perceptions on Daiichi Sankyo Company, with the most bullish analyst valuing it at JP¥6,900 and the most bearish at JP¥4,600 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Daiichi Sankyo Company's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 15% 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) 3.6% per year. Even after the forecast slowdown in growth, it seems obvious that Daiichi Sankyo Company is also expected to grow faster than 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 Daiichi Sankyo Company following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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 Daiichi Sankyo Company analysts - going out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - Daiichi Sankyo Company has 2 warning signs (and 1 which is a bit concerning) we think 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.