Estee Lauder Cos. Inc - Class A
Q4 2026 Earnings
Q4 GAAP diluted net loss per share of $(0.32) includes $306 million ($258 million net of tax) of restructuring and other charges equal to $0.71 per diluted share, and $0.08 dilutive impact from Middle East conflict disruptions
Market Reaction
Did EL Beat Earnings? Q4 2026 Results
Estée Lauder Companies posted a decisive fourth-quarter beat in fiscal Q4 2026, with adjusted EPS of $0.39 clearing the $0.32 consensus by 22.99% and marking the company's fourth consecutive quarter of beating analyst expectations. Revenue of $3.63 billion topped estimates by 2.31% and climbed 6.5% year over year, underscoring the tangible traction of the company's Beauty Reimagined strategy and its Profit Recovery and Growth Plan, which concluded having delivered $1.20 billion in gross benefits and a net reduction of 10,000 positions. On a GAAP basis, the quarter carried a diluted net loss of $0.32 per share, reflecting $306 million in restructuring and other charges tied to the now-completed program. Fragrance was the standout engine for the full year, with organic net sales growing 10%, led by double-digit gains from Le Labo, TOM FORD, and KILIAN PARIS. Looking ahead, management raised its fiscal 2027 adjusted operating margin outlook to 12.7% to 13.5% and guided for adjusted EPS of $3.10 to $3.35, representing 24% to 34% growth, with continued expansion in shade-matching innovation signaling a push to deepen product differentiation across key categories.
- Organic net sales growth of 5% in Q4 and 3% for full year
- Fragrance category led with 10% organic net sales growth for full year, driven by luxury brands Le Labo, TOM FORD, KILIAN PARIS
- Skin Care organic net sales grew 4% for full year, led by La Mer, The Ordinary, and Estée Lauder
- Gross margin expanded 150 basis points to 75.5% driven by PRGP benefits
- Adjusted operating margin expanded 320 basis points to 11.2%
- Mainland China delivered high-single-digit net sales growth for full year
- North America returned to growth in Q4
- PRGP restructuring concluded with total gross benefits of $1.2 billion
- $38 million in IEEPA tariff refunds received in Q4
“I am incredibly proud of our team for delivering fiscal 2026 results ahead of the expectations we had to start the year. We reignited growth with organic sales rising 3%, driven by the breadth of growth across brands, and achieved significant operating margin expansion.”
Estee Lauder Companies CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2027, the company affirms organic net sales growth of 3% to 5%, with greater increase in the first half versus second half. As reported net sales growth is also expected at 3% to 5%. Adjusted operating margin is expected at 12.7% to 13.5% (raised from preliminary outlook of 12.5% to 13.0%). Adjusted diluted EPS is forecast at $3.10 to $3.35, representing 24% to 34% growth. GAAP EPS is forecast at $2.52 to $2.85. Adjusted effective tax rate expected at approximately 33% to 34%. Diluted weighted-average shares outstanding expected at approximately 368 million. Net cash flows from operating activities expected between $1.3 billion and $1.4 billion. Capital expenditures expected at approximately 4% of projected sales. The company expects continued growth in Fragrance and Skin Care, a return to growth in Makeup, and more diversified growth across geographic regions. The company does not expect the Middle East conflict to have a material impact on fiscal 2027 results.
EL YoY Financials
EL Revenue by Segment
EL Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.