It's been a pretty great week for Corsair Gaming, Inc. (NASDAQ:CRSR) shareholders, with its shares surging 14% to US$7.88 in the week since its latest first-quarter results. It looks like a credible result overall - although revenues of US$355m were what the analysts expected, Corsair Gaming surprised by delivering a (statutory) profit of US$0.11 per share, an impressive 267% above what was forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Following the recent earnings report, the consensus from seven analysts covering Corsair Gaming is for revenues of US$1.43b in 2026. This implies a small 2.2% decline in revenue compared to the last 12 months. Per-share earnings are expected to leap 46% to US$0.13. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.42b and earnings per share (EPS) of US$0.20 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 10% to US$8.81, suggesting the revised estimates are not indicative of a weaker long-term future for the business. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Corsair Gaming analyst has a price target of US$11.00 per share, while the most pessimistic values it at US$7.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2026 compared to the historical decline of 7.1% per annum 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 revenue grow 10% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Corsair Gaming to suffer worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Corsair Gaming. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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. We have forecasts for Corsair Gaming going out to 2028, and you can see them free on our platform here.

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.