NTT, Inc. (TSE:9432) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

It's been a good week for NTT, Inc. (TSE:9432) shareholders, because the company has just released its latest first-quarter results, and the shares gained 2.6% to JP¥160. NTT reported in line with analyst predictions, delivering revenues of JP¥3.3t and statutory earnings per share of JP¥3.14, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the twelve analysts covering NTT are now predicting revenues of JP¥14t in 2026. If met, this would reflect a satisfactory 2.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 12% to JP¥13.30. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥14t and earnings per share (EPS) of JP¥13.43 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.

View our latest analysis for NTT

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥175. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on NTT, with the most bullish analyst valuing it at JP¥215 and the most bearish at JP¥150 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the NTT's past performance and to peers in the same industry. We would highlight that NTT's revenue growth is expected to slow, with the forecast 2.9% annualised growth rate until the end of 2026 being well below the historical 3.7% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.2% annually. Factoring in the forecast slowdown in growth, it looks like NTT is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥175, 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. 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 going out to 2028, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for NTT you should be aware 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.