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Survey Finds Investor Headiness for Growth Persists with Expectations Intact for 2026 Expansion; Frothy Valuations, Policy Impact, Geopolitics, and AI Bubble Curb Enthusiasm Somewhat
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Long-term Financial Targets
When thoughtfully utilized, long-term targets influence key decisions and help shape the trajectory for growth and stability at a company. These targets are not just numbers; they represent a commitment to shareholders, a roadmap to fulfilling the company’s vision, and a benchmark against which The Street can measure progress. They also serve as an internal motivator.
To better understand long-term financial target trends, we analyzed 100 investor days that have occurred in 2023 across market caps and sectors.
Key Findings
- The majority, 82%, of companies that hosted investor days provided long-term financial targets
- At least 80% of companies across all market cap ranges provided long-term financial targets with small caps the highest at 86%
- Three-year (2025) and four-year (2026) are the most prevalent timeframes, at 20% and 26% respectively
- Most companies provided three long-term financial metrics
Revenue growth (78%) and operating margins (73%) are the most oft-cited metrics provided, followed by EPS growth (34%), FCF (33%)
Selected Best Practices…
- Introduce targets in a public forum that allows for management voiceover
- Do not over commit by providing too many metrics or ones that are hard to predict
- Provide achievable financial goals and communicate ranges where appropriate
- Outline baseline assumptions and scenario analyses
- In the absence of long-term targets, articulate strategy milestones
Corbin Advisors is a strategic investor relations and investor communications advisory firm with a track record of supporting our publicly traded clients in creating sustained shareholder value. Our approach leverages decades of Voice of Investor® (VOI) research and data-driven insights; capital markets expertise and deep best practice knowledge; and a proven playbook and passion for client outperformance. We are a trusted advisor and partner to boards of directors, executive leaders, and investor relations professionals, serving a broad range of companies globally across sectors, sizes, and situations. Through defining the standard of excellence and challenging conventional thinking, we enable our clients to boldly differentiate their equity brand, maximize valuation, and build more durable franchises.
Corbin Advisors. Outperformance Built on Trust®.