Earnings Update: NTT DATA Group Corporation (TSE:9613) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts

NTT DATA Group Corporation (TSE:9613) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. The result was positive overall - although revenues of JP¥1.2t were in line with what the analysts predicted, NTT DATA Group surprised by delivering a statutory profit of JP¥27.58 per share, modestly greater than expected. 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.

View our latest analysis for NTT DATA Group

Taking into account the latest results, the most recent consensus for NTT DATA Group from twelve analysts is for revenues of JP¥4.88t in 2026. If met, it would imply a credible 6.0% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 28% to JP¥134. Before this earnings report, the analysts had been forecasting revenues of JP¥4.88t and earnings per share (EPS) of JP¥132 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.

There were no changes to revenue or earnings estimates or the price target of JP¥3,060, suggesting that the company has met expectations in its recent result. 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. There are some variant perceptions on NTT DATA Group, with the most bullish analyst valuing it at JP¥3,500 and the most bearish at JP¥2,550 per share. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that NTT DATA Group's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 4.8% growth on an annualised basis. This is compared to a historical growth rate of 18% 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) 5.5% annually. So it's pretty clear that, while NTT DATA Group's revenue growth is expected to slow, it's expected to grow roughly in line with 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. 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.

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 forecasts for NTT DATA Group going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for NTT DATA Group that you need to be mindful 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.