The second-quarter results for Saudi Telecom Company (TADAWUL:7010) were released last week, making it a good time to revisit its performance. Revenues were ر.س20b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of ر.س0.73 were also better than expected, beating analyst predictions by 10%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Taking into account the latest results, the most recent consensus for Saudi Telecom from 16 analysts is for revenues of ر.س81.4b in 2026. If met, it would imply a reasonable 2.6% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to decrease 4.1% to ر.س2.83 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of ر.س82.1b and earnings per share (EPS) of ر.س2.79 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.

The analysts reconfirmed their price target of ر.س48.13, showing that the business is executing well and in line with expectations. 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 Saudi Telecom analyst has a price target of ر.س55.00 per share, while the most pessimistic values it at ر.س41.10. This is a very narrow spread of estimates, implying either that Saudi Telecom is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 5.4% growth on an annualised basis. That is in line with its 5.2% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.8% annually. So although Saudi Telecom is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

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, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ر.س48.13, 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. We have forecasts for Saudi Telecom going out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - Saudi Telecom has 1 warning sign we think you should be aware of.

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.