As you might know, OneSpan Inc. (NASDAQ:OSPN) just kicked off its latest first-quarter results with some very strong numbers. The company beat forecasts, with revenue of US$66m, some 7.6% above estimates, and statutory earnings per share (EPS) coming in at US$0.30, 40% ahead of expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Following last week's earnings report, OneSpan's five analysts are forecasting 2026 revenues to be US$246.4m, approximately in line with the last 12 months. Statutory earnings per share are forecast to plummet 49% to US$0.96 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$246.1m and earnings per share (EPS) of US$0.81 in 2026. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the solid gain to earnings per share expectations following these results.

There's been no major changes to the consensus price target of US$16.25, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on OneSpan, with the most bullish analyst valuing it at US$22.00 and the most bearish at US$12.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that OneSpan's revenue growth is expected to slow, with the forecast 0.3% annualised growth rate until the end of 2026 being well below the historical 3.7% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 16% annually. Factoring in the forecast slowdown in growth, it seems obvious that OneSpan is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around OneSpan's earnings potential next year. 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 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.

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 estimates - from multiple OneSpan analysts - going out to 2027, 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.