TLDR
- Q4 net sales rose 6.3% to $3.63 billion, beating Wall Street’s estimate of $3.55 billion
- Adjusted EPS came in at $0.39, topping the $0.32 analyst consensus
- Quarterly loss narrowed sharply to $116 million from $546 million a year ago
- Company confirmed net reduction of 10,000 jobs, hitting the high end of its guided range
- Adjusted operating margin guidance raised to 12.7%-13.5%, up from 12.5%-13%
Estée Lauder stock jumped roughly 7% in premarket trading Wednesday, hitting $90.81, after the beauty company posted quarterly results that topped analyst expectations and showed its turnaround continuing to take shape.
The Estée Lauder Companies Inc., EL
Net sales for the fiscal fourth quarter ended June 30 climbed 6.3% to $3.63 billion. That beat Wall Street’s estimate of $3.55 billion. Adjusted earnings per share came in at $0.39, ahead of the $0.32 analysts had expected.
The quarterly loss narrowed to $116 million, or $0.32 per share, from $546 million, or $1.51 per share, in the same quarter a year ago.
ESTÉE LAUDER $EL Q4’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $3.6B (Est. $3.54B) 🟢; +6% YoY
🔹 Adj. EPS: $0.39; +100% YoY
🔹 Adjusted Operating Income: $267M; +95% YoYFY27 Guide:
🔹 Adj. EPS: $3.10-$3.35 (Est. $3.18) 🟢
🔹 Organic Net Sales Growth: 3% to 5%
🔹 Adjusted Operating… pic.twitter.com/1feH2FxqRK— Wall St Engine (@wallstengine) August 19, 2026
Skin care was a strong performer, with sales up 8.7% to $1.85 billion. Fragrance jumped 10% to $618 million. Makeup rose 2.9% to $1.01 billion. Hair care was the one soft spot, dipping 0.7% to $140 million.
The results ended three straight years of annual revenue declines, which had wiped out roughly $100 billion in market value since the company’s post-Covid peak in early 2022.
Turnaround Picks Up Speed
CEO Stéphane de La Faverie, who took the helm in 2025, has been pushing hard on profitability. The company said it delivered $1.2 billion in total gross benefits under its profit recovery and growth plan, hitting the high end of its previously disclosed range.
Estée Lauder confirmed a net reduction of 10,000 positions, also at the top of its guided range. The company said those cuts will drive a 50% increase in productivity among corporate employees. Total cumulative charges came in slightly above the high end of the $1.5 billion to $1.7 billion guided range.
“We ended the year on a high note, as organic sales growth accelerated to 5% for our fourth consecutive quarter of growth and stronger profitability,” de La Faverie said.
Outlook Raised
For the year ahead, Estée Lauder maintained its organic net sales growth guidance of 3% to 5%, driven by continued strength in fragrance and skin care, along with an expected return to growth in makeup.
The company raised its adjusted operating margin outlook to a range of 12.7% to 13.5%, up from the earlier preliminary range of 12.5% to 13%.
Estée Lauder also reaffirmed its full-year 2027 sales outlook.
The company has been expanding its reach to younger consumers through Amazon and TikTok Shop, while also speeding up product launches across its brand portfolio, which includes La Mer, Jo Malone London, MAC, Smashbox and Kilian Paris.
At the close on August 18, EL was trading at $84.27.
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