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Today is shaping up negative for Wolfspeed, Inc. (NYSE:WOLF) shareholders, with the analysts delivering a substantial negative revision to next year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.
Following the downgrade, the current consensus from Wolfspeed's ten analysts is for revenues of US$855m in 2026 which - if met - would reflect a notable 12% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 51% to US$3.51 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$960m and losses of US$3.39 per share in 2026. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.
See our latest analysis for Wolfspeed
The consensus price target fell 30% to US$4.00, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 9.8% growth on an annualised basis. That is in line with its 11% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 16% annually. So although Wolfspeed is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that analysts increased their loss per share estimates for next year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Wolfspeed's future valuation. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Wolfspeed after today.
There might be good reason for analyst bearishness towards Wolfspeed, like a short cash runway. Learn more, and discover the 2 other concerns we've identified, for free on our platform here.