Results: NTT DATA Group Corporation Exceeded Expectations And The Consensus Has Updated Its Estimates

NTT DATA Group Corporation (TSE:9613) defied analyst predictions to release its half-yearly results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 2.5% to hit JP¥2.2t. NTT DATA Group also reported a statutory profit of JP¥26.07, which was an impressive 23% above what the analysts had forecast. 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.

View our latest analysis for NTT DATA Group

Taking into account the latest results, the current consensus from NTT DATA Group's eleven analysts is for revenues of JP¥4.62t in 2025. This would reflect an okay 2.1% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be JP¥99.95, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥4.62t and earnings per share (EPS) of JP¥99.67 in 2025. 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¥2,798, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic NTT DATA Group analyst has a price target of JP¥3,300 per share, while the most pessimistic values it at JP¥2,110. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that NTT DATA Group's revenue growth is expected to slow, with the forecast 4.2% annualised growth rate until the end of 2025 being well below the historical 17% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.3% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than NTT DATA Group.

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¥2,798, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on NTT DATA Group. 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 NTT DATA Group going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for NTT DATA Group (1 is concerning!) that you need to take into consideration.

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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.