DBS Group Holdings Ltd Just Beat EPS By 8.6%: Here's What Analysts Think Will Happen Next

As you might know, DBS Group Holdings Ltd (SGX:D05) just kicked off its latest quarterly results with some very strong numbers. Results were good overall, with revenues beating analyst predictions by 3.8% to hit S$5.9b. Statutory earnings per share (EPS) came in at S$1.03, some 8.6% 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the 14 analysts covering DBS Group Holdings are now predicting revenues of S$23.7b in 2026. If met, this would reflect a satisfactory 6.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 2.1% to S$3.99. Yet prior to the latest earnings, the analysts had been anticipated revenues of S$23.7b and earnings per share (EPS) of S$3.99 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 DBS Group Holdings

The analysts reconfirmed their price target of S$55.08, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values DBS Group Holdings at S$64.50 per share, while the most bearish prices it at S$46.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. It's pretty clear that there is an expectation that DBS Group Holdings' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 4.9% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.0% per year. Factoring in the forecast slowdown in growth, it seems obvious that DBS Group Holdings is also expected to grow slower than other industry participants.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that DBS Group Holdings' revenue is expected to perform worse 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple DBS Group Holdings analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for DBS Group Holdings you should know about.

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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.