BrightSpring Health Services, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

As you might know, BrightSpring Health Services, Inc. (NASDAQ:BTSG) just kicked off its latest quarterly results with some very strong numbers. Results were good overall, with revenues beating analyst predictions by 5.3% to hit US$3.3b. Statutory earnings per share (EPS) came in at US$0.26, some 9.2% above whatthe analysts had 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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After the latest results, the 13 analysts covering BrightSpring Health Services are now predicting revenues of US$14.3b in 2026. If met, this would reflect a credible 7.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 101% to US$1.07. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$14.2b and earnings per share (EPS) of US$1.04 in 2026. So the consensus seems to have become somewhat more optimistic on BrightSpring Health Services' earnings potential following these results.

View our latest analysis for BrightSpring Health Services

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 14% to US$37.46. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on BrightSpring Health Services, with the most bullish analyst valuing it at US$45.00 and the most bearish at US$28.50 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await BrightSpring Health Services shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the BrightSpring Health Services' past performance and to peers in the same industry. It's pretty clear that there is an expectation that BrightSpring Health Services' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 6.1% growth on an annualised basis. This is compared to a historical growth rate of 17% 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) 5.3% annually. So it's pretty clear that, while BrightSpring Health Services' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around BrightSpring Health Services' earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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. At Simply Wall St, we have a full range of analyst estimates for BrightSpring Health Services going out to 2027, and you can see them free on our platform here..

Even so, be aware that BrightSpring Health Services is showing 2 warning signs in our investment analysis , and 1 of those is potentially serious...

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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.