Estee Lauder Q4 2026: Fourth Straight Beat and a Bullish FY2027 Outlook
As seen on the 24/7 Wall St. homepage on August 19, 2026.
The turnaround has legs: management guided fiscal 2027 adjusted EPS to $3.10-$3.35, growth of 24% to 34%, and raised the operating margin outlook to 12.7%-13.5%. Fragrance grew 10% organically for the year and mainland China sales rose 12% in the quarter, while the GAAP loss carries $306 million of restructuring charges from a program that is now finished.
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Estée Lauder posted adjusted EPS of $0.39 in its fiscal fourth quarter, beating expectations for a fourth straight quarter, with revenue up 6.5% year over year as the Beauty Reimagined strategy gains traction.
Management raised its fiscal 2027 adjusted EPS guidance to $3.10 to $3.35, representing 24% to 34% growth, and lifted the operating margin outlook above the preliminary range, evidence the cost discipline behind the turnaround is holding.
Fragrance organic net sales grew 10% for the full fiscal year, led by Le Labo, TOM FORD, and KILIAN PARIS, while Mainland China revenue gained 12% in the quarter, an acceleration that counters the stalled-China-recovery narrative for prestige beauty.
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The quarterly GAAP net loss includes $306 million in restructuring charges tied to the now-concluded Profit Recovery and Growth Plan, which delivered $1.2 billion in gross benefits and a net reduction of 10,000 positions. CEO Stéphane de La Faverie said the quarter ended "on a high note" with organic sales growth accelerating to 5%, and named North America growth a fiscal 2027 priority.
IEEPA tariffs represented a $102 million gross impact for the full fiscal year, and management does not expect the Middle East conflict to have a material impact in fiscal 2027. Tariffs remain the live variable as the company pursues 3% to 5% organic net sales growth.
Mentioned: EL