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

Estee Lauder Companies (NYSE:EL) posted its quarterly earnings data on Friday. The company reported $0.91 earnings per share for the quarter, topping the consensus estimate of $0.66 by $0.25, Briefing.com reports. Estee Lauder Companies had a negative net margin of 1.21% and a positive return on equity of 17.59%. The company had revenue of $3.71 billion during the quarter, compared to analysts’ expectations of $3.69 billion. During the same period in the prior year, the company posted $0.65 earnings per share. Estee Lauder Companies’s revenue for the quarter 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 Stock Up 3.0%

Shares of NYSE EL traded up $2.32 during mid-day trading on Friday, reaching $79.03. 7,019,386 shares of the company’s stock traded hands, compared to its average volume of 3,499,427. The stock has a market cap of $28.59 billion, a P/E ratio of -158.06, a PEG ratio of 0.89 and a beta of 1.22. The business has a 50-day simple moving average of $83.69 and a 200 day simple moving average of $96.43. Estee Lauder Companies has a 1-year low of $56.66 and a 1-year high of $121.64. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.36 and a quick ratio of 1.00.

Estee Lauder Companies Dividend Announcement

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

Estee Lauder Companies News Summary

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

Wall Street Analysts Forecast Growth

EL has been the subject of a number of research reports. Jefferies Financial Group initiated coverage on shares of Estee Lauder Companies in a report on Wednesday, January 14th. They issued a “hold” rating and a $110.00 price target for the company. TD Cowen reduced their price target on shares of Estee Lauder Companies from $130.00 to $115.00 and set a “hold” rating for the company in a report on Monday, February 9th. Royal Bank Of Canada restated an “outperform” rating and issued a $113.00 price target on shares of Estee Lauder Companies in a report on Tuesday, February 3rd. Citigroup reduced their price target on shares of Estee Lauder Companies from $120.00 to $92.00 and set a “buy” rating for the company in a report on Wednesday, April 15th. Finally, Zacks Research cut shares of Estee Lauder Companies from a “strong-buy” rating to a “hold” rating in a report on Monday, February 9th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Estee Lauder Companies currently has a consensus rating of “Hold” and a consensus price target of $97.95.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in EL. Schroder Investment Management Group grew its holdings in shares of Estee Lauder Companies by 185.3% during the fourth quarter. Schroder Investment Management Group now owns 8,140,550 shares of the company’s stock valued at $861,596,000 after buying an additional 5,286,875 shares during the last quarter. Wellington Management Group LLP grew its holdings in shares of Estee Lauder Companies by 3,986.4% during the third quarter. Wellington Management Group LLP now owns 2,082,217 shares of the company’s stock valued at $183,485,000 after buying an additional 2,031,262 shares during the last quarter. Franklin Resources Inc. grew its holdings in shares of Estee Lauder Companies by 1,193.8% during the third quarter. Franklin Resources Inc. now owns 1,521,399 shares of the company’s stock valued at $134,066,000 after buying an additional 1,403,807 shares during the last quarter. Price T Rowe Associates Inc. MD grew its holdings in shares of Estee Lauder Companies by 77.4% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,684,170 shares of the company’s stock valued at $281,087,000 after buying an additional 1,171,078 shares during the last quarter. Finally, Two Sigma Investments LP acquired a new position in shares of Estee Lauder Companies during the third quarter valued at about $51,330,000. 55.15% of the stock is currently owned by institutional investors and hedge funds.

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.