The investors in Advantage Solutions Inc.'s (NASDAQ:ADV) will be rubbing their hands together with glee today, after the share price leapt 30% to US$44.43 in the week following its quarterly results. Revenues of US$870m beat expectations by a respectable 4.5%, although statutory losses per share increased. Advantage Solutions lost US$5.49, which was 47% more than what the analysts had included in their models. 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.

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Taking into account the latest results, Advantage Solutions' dual analysts currently expect revenues in 2026 to be US$3.58b, approximately in line with the last 12 months. Losses are predicted to fall substantially, shrinking 46% to US$9.98. Before this earnings announcement, the analysts had been modelling revenues of US$3.53b and losses of US$7.53 per share in 2026. So it's pretty clear the analysts have mixed opinions on Advantage Solutions even after this update; although they reconfirmed their revenue numbers, it came at the cost of a sizeable expansion in per-share losses.

View our latest analysis for Advantage Solutions

Despite expectations of heavier losses next year,the analysts have lifted their price target 51% to US$42.50, perhaps implying these losses are not expected to be recurring over the long term.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 0.5% annualised decline to the end of 2026. That is a notable change from historical growth of 0.5% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.5% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Advantage Solutions is expected to lag the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Advantage Solutions. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Advantage Solutions that you should be aware of.