Estee Lauder Companies (NYSE:EL) Posts Quarterly Earnings Results, Beats Expectations By $0.25 EPS

Estee Lauder Companies (NYSE:EL) issued its earnings results on Friday. The company reported $0.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.66 by $0.25, Briefing.com reports. Estee Lauder Companies had a positive return on equity of 17.59% and a negative net margin of 1.21%.The firm had revenue of $3.71 billion for the quarter, compared to analysts’ expectations of $3.69 billion. During the same period in the previous year, the firm posted $0.65 earnings per share. The business’s revenue was up 4.6% compared to the same quarter last year. Estee Lauder Companies updated its FY 2026 guidance to 2.330-2.430 EPS.

Here are the key takeaways from Estee Lauder Companies’ conference call:

• Management raised fiscal 2026 guidance to about 3% organic sales growth, an operating margin of 10.7%–11% and EPS of $2.35–$2.45, and issued a preliminary fiscal 2027 view of 3%–5% organic growth with a 12.5%–13% operating margin.
• Third‑quarter results showed underlying momentum: organic sales +2%, gross margin expanded ~140 bps, operating margin widened to 15% (vs. 11.4% a year ago) and diluted EPS rose 40%, with strong online growth (double‑digit in Q3; ~10% YTD) and outperformance in Mainland China, Hainan travel retail and priority emerging markets.
• The company is rolling out its One ELC operating model and tech partnerships (Accenture, Shopify, WPP), with enterprise business services already live across key systems and full deployment targeted by end of calendar 2026 to unify data, improve activation and drive efficiency.
• Estée Lauder expanded its PRGP restructuring program and now expects total restructuring and other charges of $1.5–$1.7 billion before taxes, including planned exits of select unproductive department‑store and freestanding doors and anticipated impacts to beauty advisor roles.
• Geopolitical and travel‑retail headwinds persist: the Middle East conflict reduced Q3 EMEA growth by ~1 percentage point and is expected to hurt Q4 by ~2 points of sales and ~<$0.06 in EPS, while travel retail recovery is uneven despite strong Hainan performance.

Estee Lauder Companies Price Performance

EL opened at $79.03 on Friday. The business has a fifty day moving average of $83.69 and a 200 day moving average of $96.46. The stock has a market cap of $28.59 billion, a P/E ratio of -112.90, a PEG ratio of 0.92 and a beta of 1.22. The company has a quick ratio of 1.00, a current ratio of 1.36 and a debt-to-equity ratio of 1.82. Estee Lauder Companies has a 52-week low of $56.66 and a 52-week high of $121.64.

Estee Lauder Companies Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Friday, May 29th will be issued a dividend of $0.35 per share. The ex-dividend date is Friday, May 29th. This represents a $1.40 dividend on an annualized basis and a yield of 1.8%. Estee Lauder Companies’s payout ratio is presently -280.00%.

Estee Lauder Companies News Roundup

Here are the key news stories impacting Estee Lauder Companies this week:

• Positive Sentiment: Q3 beat and guidance raise — EL reported adjusted EPS $0.91 vs. consensus $0.66 and revenue $3.71B vs. $3.69B; management raised FY‑2026 EPS guidance to a 2.33–2.43 range, supporting upside to near‑term earnings expectations. Business Wire: Q3 Results
• Positive Sentiment: Restructuring-linked margin improvement — Management expanded its Profit Recovery & Growth Plan (PRGP), raising expected annual gross benefits to roughly $1.0–$1.2B and increasing planned position reductions (now up to ~9,000–10,000), which investors view as driving near‑term margin expansion. Proactive Investors: Beats estimates, raises guidance
• Neutral Sentiment: Regional sales momentum — Management highlighted stronger sales in Mainland China and Europe (and double‑digit fragrance growth year‑to‑date), a constructive signal for recovery in key luxury channels but still exposed to travel and macro variability. Reuters: Q3 beat
• Neutral Sentiment: Strategic minority investment — EL announced a minority investment in luxury clinical skin‑care brand 111SKIN, reflecting continued brand and portfolio investment; this is longer‑term strategic rather than an immediate earnings driver. Financial Post: 111SKIN investment
• Negative Sentiment: Deeper job cuts and mixed GAAP outlook — While cost savings are viewed positively, the company increased planned headcount reductions (reports cite up to 10,000 roles and separate notices of up to 3,000 more jobs tied to strategic moves), which can signal restructuring risk and near‑term disruption; management’s GAAP metrics were weaker (negative net margin), which some investors penalize. Financial Post: Cut 3,000 jobs
• Negative Sentiment: Valuation and macro risk concerns — Some analysts caution EL’s rally has priced in much of the recovery (comments flag an expensive valuation) and note exposure to Asian travel retail and broader macro/energy shocks, which could limit multiple expansion. Seeking Alpha: Valuation caution

Hedge Funds Weigh In On Estee Lauder Companies

Several hedge funds have recently bought and sold shares of EL. DV Equities LLC bought a new position in Estee Lauder Companies in the 4th quarter valued at $36,000. Kelleher Financial Advisors bought a new position in Estee Lauder Companies in the 3rd quarter valued at $39,000. Quarry LP bought a new position in Estee Lauder Companies in the 4th quarter valued at $42,000. Colonial Trust Co SC grew its position in Estee Lauder Companies by 779.2% in the 4th quarter. Colonial Trust Co SC now owns 677 shares of the company’s stock valued at $71,000 after acquiring an additional 600 shares during the last quarter. Finally, UMB Bank n.a. grew its position in Estee Lauder Companies by 26.0% in the 4th quarter. UMB Bank n.a. now owns 698 shares of the company’s stock valued at $73,000 after acquiring an additional 144 shares during the last quarter. Institutional investors own 55.15% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on EL shares. Wells Fargo & Company decreased their price objective on Estee Lauder Companies from $90.00 to $75.00 and set an “equal weight” rating on the stock in a research report on Wednesday, April 8th. Royal Bank Of Canada restated an “outperform” rating and set a $113.00 price objective on shares of Estee Lauder Companies in a research report on Tuesday, February 3rd. Jefferies Financial Group started coverage on Estee Lauder Companies in a research report on Wednesday, January 14th. They set a “hold” rating and a $110.00 price objective on the stock. Telsey Advisory Group restated a “market perform” rating and set a $105.00 price objective on shares of Estee Lauder Companies in a research report on Thursday, February 5th. Finally, TD Cowen decreased their price objective on Estee Lauder Companies from $130.00 to $115.00 and set a “hold” rating on the stock in a research report on Monday, February 9th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Estee Lauder Companies has a consensus rating of “Hold” and a consensus target price of $101.33.

About Estee Lauder Companies

Estée Lauder Companies Inc (NYSE: EL) is a global leader in prestige beauty that develops, manufactures and markets a broad portfolio of skincare, makeup, fragrance and hair care products. Founded in 1946 by Estée Lauder, the company has grown from a small family business into a multinational consumer-products enterprise headquartered in New York City. Its activities span product research and development, brand and product marketing, manufacturing and global distribution across multiple retail channels.

The company’s portfolio includes a mix of legacy and prestige brands that target different consumer segments and price points, with well-known names such as Estée Lauder, Clinique, MAC, La Mer and Jo Malone among others.