Renesas Electronics Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

Investors in Renesas Electronics Corporation (TSE:6723) had a good week, as its shares rose 3.7% to close at JP¥1,911 following the release of its third-quarter results. It looks like a credible result overall - although revenues of JP¥335b were what the analysts expected, Renesas Electronics surprised by delivering a (statutory) profit of JP¥58.04 per share, an impressive 141% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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After the latest results, the 15 analysts covering Renesas Electronics are now predicting revenues of JP¥1.43t in 2026. If met, this would reflect a decent 14% improvement in revenue compared to the last 12 months. Renesas Electronics is also expected to turn profitable, with statutory earnings of JP¥135 per share. Before this earnings report, the analysts had been forecasting revenues of JP¥1.44t and earnings per share (EPS) of JP¥118 in 2026. Although the revenue estimates have not really changed, we can see there's been a substantial gain in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

See our latest analysis for Renesas Electronics

The consensus price target was unchanged at JP¥2,417, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. The most optimistic Renesas Electronics analyst has a price target of JP¥3,000 per share, while the most pessimistic values it at JP¥1,850. 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 Renesas Electronics shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Renesas Electronics'historical trends, as the 11% annualised revenue growth to the end of 2026 is roughly in line with the 11% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.8% annually. So although Renesas Electronics is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider 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 Renesas Electronics following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥2,417, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Renesas Electronics going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for Renesas Electronics (1 is a bit concerning!) that 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.