Author: admin

Last week, you might have seen that Cameco Corporation (TSE:CCO) released its third-quarter result to the market. The early response was not positive, with shares down 9.7% to CA$129 in the past week. Cameco’s revenues suffered a miss, falling 18% short of forecasts, at CA$615m. Statutory earnings per share (EPS) however performed much better, reaching break-even. This is an important time for investors, as they can track a company’s performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

After the latest results, the 14 analysts covering Cameco are now predicting revenues of CA$3.71b in 2026. If met, this would reflect a modest 7.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 79% to CA$2.16. Before this earnings report, the analysts had been forecasting revenues of CA$3.72b and earnings per share (EPS) of CA$2.38 in 2026. So it looks like there’s been a small decline in overall sentiment after the recent results – there’s been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

View our latest analysis for Cameco

It might be a surprise to learn that the consensus price target was broadly unchanged at CA$146, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Cameco analyst has a price target of CA$175 per share, while the most pessimistic values it at CA$100.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Cameco shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It’s pretty clear that there is an expectation that Cameco’s revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.6% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.0% per year. Even after the forecast slowdown in growth, it seems obvious that Cameco is also expected to grow faster than the wider industry.

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Cameco. Fortunately, they also reconfirmed their revenue numbers, suggesting that it’s tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates – from multiple Cameco analysts – going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we’ve discovered 1 warning sign for Cameco that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Mentions of artificial intelligence (AI) have surged on earnings calls, yet only a small fraction of firms have applied it in ways that have meaningfully affected their business. A 2025 multi-method study from MIT NANDA (Networked Agents and Decentralized AI) found that just 5% of organizations report measurable ROI from their investment in generative AI. While the study may not represent all organizations and industries, it reveals that enthusiasm for AI does not always guarantee business value.

Gallup’s own research finds a similar conclusion. Even as the availability of AI technologies has accelerated in the past two years, access does not necessarily lead to AI adoption among employees or a return on investment. Bottlenecks often stem from unclear localized use cases and resistance from middle managers and frontline employees. “The irony of labour-saving automation,” writes The Economist, “is that people often stand in the way.”

Gallup’s research on AI adoption suggests that managers who actively encourage AI use not only generate higher AI adoption but also help their teams identify applications that fit existing workflows and solve real problems, creating greater value from AI tools. Within organizations that are investing in AI technology, employees who strongly agree their manager supports AI use are nearly nine times as likely to strongly agree that it helps them do what they do best every day.

What Prevents AI Adoption? The Top Barriers

Even in organizations that have begun implementing AI, many employees are unsure how it fits into their work. When asked to identify the greatest barrier to AI adoption in their workplace, the top response was an unclear use case or value proposition (16%). AI adoption challenges like this may reflect situations where an AI’s utility is immediately unclear but also concerns about whether AI can evolve or integrate with existing processes or tools. Concerns about legal or privacy risks ranked a close second at 15%, followed by a lack of training or necessary knowledge (11%).

###Embeddable###

Many Employees Still See AI as Irrelevant to Their Work

Input from those who do not use AI in their role reinforces that showing the job-specific value and benefits of AI use is fundamental to adoption. Nearly half (44%) of these employees say the main reason they do not use AI tools in their role is that they don’t believe AI can assist with the work they do.

Just 16% percent of non-users say they don’t use AI primarily because they do not have access to AI tools at their organization. Others cite resistance to change in the way they do their job (11%), lack of knowledge of how to use AI tools (10%), feeling unsafe using AI tools (8%), or some other reason (10%). These data underscore that real AI adoption and value depend on addressing the barriers employees face when using AI tools and showing how those tools can improve their work.

###Embeddable###

What Makes a Difference in the Adoption of AI

The top barriers to AI adoption in business present real challenges, but leaders can address them with targeted strategies. Gallup identified four AI adoption best practices associated with higher AI usage and stronger evaluations of its benefits among employees:

1. Communicate a clear strategy for AI integration. Employees are more likely to engage with AI when they see that their organization has a defined approach, understands AI risks and concerns, and is prepared to address them. This signals that AI adoption is intentional and connected to broader business goals.
2. Champion AI use at the team level. Managers play a vital leadership role in translating the AI adoption strategy into action. By actively supporting AI use, modeling its application, and connecting it to the work employees actually do, managers make organizational plans relevant and practical.
3. Provide role-specific training that maximizes value and mitigates risk. Organizations should design training based on employees’ actual tasks and include guidance for secure use. This builds skill and confidence in using AI effectively.
4. Establish clear policies and guidelines for responsible use. Well-defined, accessible policies and guidelines give employees the confidence to explore AI’s potential while staying within organizational, legal, and ethical boundaries. Strong policies also address safety concerns that often deter adoption.

When combined, these AI adoption strategies help employees see AI’s value in the context of their own role and build the confidence to use it regularly. They also position managers to deliver the ongoing guidance and encouragement that turn access into sustained application.

Managers Lead the Way to AI Adoption

Because of their day-to-day connection with employees, managers are uniquely positioned to champion AI by modeling its use, answering questions and showing how it connects to employees’ daily work. Gallup data show that manager support has the strongest association with measurable differences in how employees use and value AI. Within organizations that are investing in AI technology, employees who strongly agree their manager actively supports their team’s use of AI are:

• 2.1 times as likely to use AI a few times a week or more
• 6.5 times as likely to strongly agree that the AI tools provided by their organization are useful for their work
• 8.8 times as likely to strongly agree that AI gives them more opportunities to do what they do best every day

Despite these clear benefits, many employees report a lack of active support from their managers when it comes to using AI. Only 28% of employees in organizations that have begun implementing AI technologies strongly agree their manager actively supports their team’s use of the technology, leaving significant room for improvement. This adoption gap continues to hold down overall AI adoption rates.

###Embeddable###

Turn AI Access Into Results

The potential of AI in the workplace remains for many organizations, but its value depends on more than availability. Adoption and results are most likely when employees clearly understand how they can apply AI to their work and see its relevance to what they do. Managers play a central role in illustrating this relevance, guiding their teams in using AI effectively and making it a meaningful factor in performance.

Learn more about how the Gallup Panel works. View complete question responses and trends (PDF download).

###Embeddable###

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly, we’ll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. Ultimately, this demonstrates that it’s a business that is reinvesting profits at increasing rates of return. So on that note, JD.com (NASDAQ:JD) looks quite promising in regards to its trends of return on capital.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

For those who don’t know, ROCE is a measure of a company’s yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for JD.com:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)

0.08 = CN¥31b ÷ (CN¥707b – CN¥323b) (Based on the trailing twelve months to June 2025).

Thus, JD.com has an ROCE of 8.0%. Ultimately, that’s a low return and it under-performs the Multiline Retail industry average of 11%.

See our latest analysis for JD.com

In the above chart we have measured JD.com’s prior ROCE against its prior performance, but the future is arguably more important. If you’re interested, you can view the analysts predictions in our free analyst report for JD.com .

While in absolute terms it isn’t a high ROCE, it’s promising to see that it has been moving in the right direction. The numbers show that in the last five years, the returns generated on capital employed have grown considerably to 8.0%. The company is effectively making more money per dollar of capital used, and it’s worth noting that the amount of capital has increased too, by 113%. So we’re very much inspired by what we’re seeing at JD.com thanks to its ability to profitably reinvest capital.

On a side note, JD.com’s current liabilities are still rather high at 46% of total assets. This effectively means that suppliers (or short-term creditors) are funding a large portion of the business, so just be aware that this can introduce some elements of risk. Ideally we’d like to see this reduce as that would mean fewer obligations bearing risks.

To sum it up, JD.com has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific. Given the stock has declined 62% in the last five years, this could be a good investment if the valuation and other metrics are also appealing. With that in mind, we believe the promising trends warrant this stock for further investigation.

If you want to know some of the risks facing JD.com we’ve found 2 warning signs (1 is significant!) that you should be aware of before investing here.

While JD.com may not currently earn the highest returns, we’ve compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.