Shell plc (LON:SHEL) Analysts Just Slashed This Year's Revenue Estimates By 12%
Market forces rained on the parade of Shell plc (LON:SHEL) shareholders today, when the analysts downgraded their forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.
Following this downgrade, Shell's 17 analysts are forecasting 2026 revenues to be US$270b, approximately in line with the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$307b in 2026. The consensus view seems to have become more pessimistic on Shell, noting the substantial drop in revenue estimates in this update.
View our latest analysis for Shell
There was no particular change to the consensus price target of US$49.73, with Shell's latest outlook seemingly not enough to result in a change of valuation. 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. The most optimistic Shell analyst has a price target of US$59.99 per share, while the most pessimistic values it at US$40.69. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 1.7% growth on an annualised basis. That is in line with its 1.7% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 1.8% per year. So although Shell is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The most important thing to take away is that analysts cut their revenue estimates for this year. They're also forecasting for revenues to grow at about the same rate as companies in the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Shell after today.
Thirsting for more data? We have estimates for Shell from its 17 analysts out until 2028, and you can see them free on our platform here.
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