The Sherwin-Williams Company (NYSE:SHW) defied analyst predictions to release its second-quarter results, which were ahead of market expectations. Results were good overall, with revenues beating analyst predictions by 2.9% to hit US$6.8b. Statutory earnings per share (EPS) came in at US$3.43, some 3.0% above whatthe analysts had expected. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Following the latest results, Sherwin-Williams' 22 analysts are now forecasting revenues of US$25.1b in 2026. This would be a reasonable 2.8% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$11.23, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$24.7b and earnings per share (EPS) of US$10.91 in 2026. So the consensus seems to have become somewhat more optimistic on Sherwin-Williams' earnings potential following these results.

There's been no major changes to the consensus price target of US$390, 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. The most optimistic Sherwin-Williams analyst has a price target of US$420 per share, while the most pessimistic values it at US$340. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Sherwin-Williams' rate of growth is expected to accelerate meaningfully, with the forecast 5.8% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 3.8% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 5.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Sherwin-Williams is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sherwin-Williams' earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Sherwin-Williams. Long-term earnings power is much more important than next year's profits. We have forecasts for Sherwin-Williams going out to 2028, and you can see them free on our platform here.

Even so, be aware that Sherwin-Williams is showing 1 warning sign in our investment analysis , you should know about...

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.