SoftBank Corp. Just Missed EPS By 8.1%: Here's What Analysts Think Will Happen Next

Investors in SoftBank Corp. (TSE:9434) had a good week, as its shares rose 2.7% to close at JP¥209 following the release of its quarterly results. It looks like the results were a bit of a negative overall. While revenues of JP¥1.7t were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 8.1% to hit JP¥2.33 per share. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for SoftBank

Taking into account the latest results, the current consensus from SoftBank's twelve analysts is for revenues of JP¥6.79t in 2026. This would reflect a reasonable 6.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 9.8% to JP¥11.99. In the lead-up to this report, the analysts had been modelling revenues of JP¥6.74t and earnings per share (EPS) of JP¥11.63 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at JP¥213, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. Currently, the most bullish analyst values SoftBank at JP¥270 per share, while the most bearish prices it at JP¥183. 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.

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. We can infer from the latest estimates that forecasts expect a continuation of SoftBank'shistorical trends, as the 5.0% annualised revenue growth to the end of 2026 is roughly in line with the 5.9% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.6% per year. So it's pretty clear that SoftBank is forecast to grow substantially faster than its 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 SoftBank following these results. Happily, there were no major changes to revenue forecasts, with the business still 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for SoftBank going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for SoftBank that we have uncovered.

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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.