Eastman Chemical Company (NYSE: EMN), headquartered in Kingsport, Tennessee, reported disappointing quarterly results for the second quarter of 2025, reflecting the sustained challenges facing the specialty chemicals sector both domestically and globally. The company posted adjusted earnings per share of $1.60, falling short of analyst expectations, which had centered on a consensus estimate of $1.72. Total revenue declined year-over-year to $2.29 billion from $2.36 billion in the same period last year. In addition, operating cash flow for the quarter fell to $233 million, down from $367 million a year prior (Nasdaq.com).
The underperformance was widely attributed to a challenging global macroeconomic climate. Eastman CEO Mark Costa cited ongoing weaknesses in demand across key end markets and persistent tariff-related headwinds, noting that seasonal improvement signals remain elusive. These dynamics have led analysts to revise expectations downward in recent weeks, contributing to a more negative consensus regarding the company’s short-term financial prospects (Yahoo Finance).
Despite recent history of positive surprises—Eastman Chemical has surpassed consensus estimates in three of the last four quarters—current analyst sentiment reflects caution. According to industry observers, recent downward revisions to earnings and revenue estimates suggest that outperforming expectations this quarter will be challenging. The latest broker outlooks have mirrored this apprehension. Mizuho analyst John Roberts reduced his price target for EMN from $92 to $80 while maintaining his "Outperform" rating. Barclays analyst Michael Leithead similarly downgraded his target to $85 from $108 with an "Equal Weight" rating, highlighting operational difficulties in the company’s Fibers division as a contributing factor. Wells Fargo further revised its target down to $70 from $90 but kept an "Overweight" stance, acknowledging unexpectedly soft demand that has weighed on the short-term outlook (GuruFocus - Mizuho, GuruFocus - Barclays, GuruFocus - Wells Fargo).
The broader chemical industry is entering its 38th month of downturn, a slump intensified by increased ethylene capacity in China, which has resulted in a global supply glut. This glut, compounded by soft industrial demand and ongoing trade-related tariffs, is putting pressure on U.S. chemical manufacturers, Eastman included. Experts forecast continued earnings pressure for the sector at least in the near term (Reuters).
Reflecting these mounting pressures, Eastman Chemical’s share price closed at $63.78 on Monday, October 27, 2025, up slightly by $1.09 or 0.02% from the previous close. The latest trade was recorded at 23:15:00 UTC, underlining the company’s equity performance in the U.S. market as it continues to navigate an unpredictable global economic landscape.
Given the uncertain outlook, analysts suggest that investors consider a broad range of factors—including consensus estimates, last-minute forecast revisions, and broader macroeconomic developments—before making decisions regarding Eastman Chemical stock (full report).