Shareholders of Lululemon Athletica Inc. (NASDAQ:LULU) will be pleased this week, given that the stock price is up 19% to US$400 following its latest third-quarter results. The result was positive overall - although revenues of US$2.4b were in line with what the analysts predicted, Lululemon Athletica surprised by delivering a statutory profit of US$2.87 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Following the latest results, Lululemon Athletica's 33 analysts are now forecasting revenues of US$11.3b in 2026. This would be a meaningful 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 5.7% to US$15.06. In the lead-up to this report, the analysts had been modelling revenues of US$11.2b and earnings per share (EPS) of US$14.88 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 15% to US$365despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Lululemon Athletica's earnings by assigning a price premium. 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 Lululemon Athletica analyst has a price target of US$440 per share, while the most pessimistic values it at US$194. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. We would highlight that Lululemon Athletica's revenue growth is expected to slow, with the forecast 8.9% annualised growth rate until the end of 2026 being well below the historical 22% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.1% per year. So it's pretty clear that, while Lululemon Athletica's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Lululemon Athletica. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Lululemon Athletica analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Lululemon Athletica's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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