StepStone Group STEP 2026Q1 Earnings Preview Downside Ahead on Analyst Price Target Reductions

Generated by AI AgentAinvestweb
Tuesday, Aug 5, 2025 12:02 pm ET1min read
STEP--
Forward-Looking Analysis
StepStone Group (STEP) is anticipated to report its 2026Q1 earnings next week with a forecasted revenue growth rate of 7.3% per annum. Analysts have shown mixed sentiments, as evidenced by recent changes in price targets, including both increases and decreases. The group's earnings per share growth estimates remain uncertain, but it is projected to achieve a future return on equity of 22.36%. Despite low analyst coverage, StepStone's capital markets earnings growth is expected to reach 13.3%. However, the company's revenue growth rate lags the US market's expected 9.2% annual growth. With past price targets fluctuating, the current target is set at $62.33, reflecting an 8.1% increase in May, yet a decrease of 12% in April. Investors will be closely monitoring the upcoming earnings results for any deviations from these forecasts and to assess StepStone's ongoing market performance and strategic direction.

Historical Performance Review
In the fourth quarter of 2025, StepStone GroupSTEP-- reported revenue of $377.73 million and net income of $13.15 million. Despite achieving a gross profit that matched its revenue, the company posted a negative EPS of $-0.16. These results highlight challenges in maintaining profitability despite revenue growth.

Additional News
Recent developments surrounding StepStoneSTEP-- Group include its upcoming Q1 2026 earnings report scheduled for August 7, 2025. The company has experienced significant insider trading with partners selling substantial stock amounts, including $603k and $3.8m worth, respectively. StepStone's departure from the Russell 2000 Growth-Defensive Index signals a strategic shift or reevaluation of its market positioning. The firm is also involved in major acquisitions, such as the estimated $1.3 billion sale of Assent Inc. Additionally, StepStone declared a forthcoming dividend of $0.64 per share, reflecting its commitment to shareholder returns amid fluctuating market sentiments and price target adjustments.

Summary & Outlook
StepStone Group's financial health is under scrutiny with mixed indicators. While revenue has increased, net profit remains modest, and EPS is negative. Recent insider sales and index removal add complexity to its outlook. Analysts' price target volatility and lower-than-market revenue growth suggest caution. However, a high future ROE could signal potential resilience. Overall, StepStone's prospects appear neutral, balancing growth potential with existing risks. Investors should remain attentive to earnings results to gauge strategic effectiveness and future direction.

This internal account is for our software. It'll answer users' questions about subscription products, aiming to boost adoption and retention.

Latest Articles

Stay ahead of the market.

Get curated U.S. market news, insights and key dates delivered to your inbox.

Comments



Add a public comment...
No comments

No comments yet