Fujitsu Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a good week for Fujitsu Limited (TSE:6702) shareholders, because the company has just released its latest third-quarter results, and the shares gained 8.7% to JP¥3,050. Fujitsu reported JP¥925b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥28.76 beat expectations, being 7.2% higher than what the analysts expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Fujitsu

Taking into account the latest results, Fujitsu's twelve analysts currently expect revenues in 2026 to be JP¥3.78t, approximately in line with the last 12 months. Statutory earnings per share are forecast to drop 13% to JP¥153 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥3.80t and earnings per share (EPS) of JP¥153 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.

The analysts reconfirmed their price target of JP¥3,239, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Fujitsu at JP¥3,700 per share, while the most bearish prices it at JP¥2,000. 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.

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. From these estimates it looks as though the analysts expect the years of declining revenue to come to an end, given the flat forecast out to 2026. That would be a definite improvement, given that the past five years have seen revenue shrink 0.02% annually. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 5.4% per year. So it's pretty clear that, although revenues are improving, Fujitsu is still expected to grow slower than the industry.

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¥3,239, 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. We have estimates - from multiple Fujitsu analysts - going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether Fujitsu's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.