International Paper Stock Performance and Analyst Sentiment

International Paper (IP) has underperformed the broader market over the past year, with a 26 bps uptick over the past 52 weeks and a 14.4% decline in 2025. Analysts expect IP to deliver an adjusted EPS of $1.92 for the full fiscal 2025, up 69.9% YoY. The stock has a consensus "Moderate Buy" rating with seven "Strong Buys," one "Moderate Buy," two "Holds," and two "Strong Sells."

Title: International Paper (IP) Underperforms in Q2 CY2025, but Analysts Remain Optimistic

International Paper (NYSE: IP), a packaging and materials company, reported its Q2 CY2025 financial results, revealing mixed performance that has investors and analysts closely monitoring the stock. The company's revenue grew by 42.9% year-on-year to $6.77 billion, beating Wall Street's estimates by 1.9% [1]. However, its non-GAAP profit of $0.20 per share missed analysts' consensus estimates by 51.1% [1].

The company's operating margin declined to 1.7% from 5.2% in the same quarter last year, and its free cash flow margin decreased to 0.8% from 3.5% [1]. The earnings per share (EPS) of $0.20 also fell short of expectations, posting a 48.72% negative surprise [2]. These results have led to a significant decline in the stock's price, with the stock trading down 7.6% to $49.62 immediately after reporting [1].

Analysts at JPMorgan downgraded International Paper from Overweight to Neutral, citing the earnings miss and concerns about the company's 2027 guidance range [2]. Despite the downgrade, the stock remains fairly valued, according to InvestingPro's Fair Value analysis [2].

Looking ahead, sell-side analysts expect International Paper's revenue to grow by 23.2% over the next 12 months, an improvement over its recent performance [1]. The company's strong revenue growth in the second quarter suggests that its newer products and services are driving better top-line performance.

International Paper's stock has underperformed the broader market over the past year, with a 26 bps uptick over the past 52 weeks and a 14.4% decline in 2025. The stock has a consensus "Moderate Buy" rating with seven "Strong Buys," one "Moderate Buy," two "Holds," and two "Strong Sells" [3]. Analysts expect IP to deliver an adjusted EPS of $1.92 for the full fiscal 2025, up 69.9% year-over-year [3].

In conclusion, International Paper's Q2 CY2025 results were mixed, with strong revenue growth but disappointing earnings per share. The stock has declined significantly following the earnings report, but analysts remain optimistic about the company's future performance. Investors should continue to monitor the company's progress and adjust their investment strategies accordingly.

References:
1. [https://finance.yahoo.com/news/international-paper-nyse-ip-surprises-115215632.html](https://finance.yahoo.com/news/international-paper-nyse-ip-surprises-115215632.html)
2. [https://www.investing.com/news/analyst-ratings/jpmorgan-downgrades-international-paper-stock-rating-to-neutral-on-earnings-miss-93CH-4169330](https://www.investing.com/news/analyst-ratings/jpmorgan-downgrades-international-paper-stock-rating-to-neutral-on-earnings-miss-93CH-4169330)
3. [https://www.prnewswire.com/news-releases/international-paper-reports-second-quarter-2025-results-302517927.html](https://www.prnewswire.com/news-releases/international-paper-reports-second-quarter-2025-results-302517927.html)