Estee Lauder Companies (NYSE:EL) Announces Earnings Results

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

EL traded up $2.32 during trading on Friday, hitting $79.03. The company had a trading volume of 7,019,386 shares, compared to its average volume of 3,499,427. The company has a market cap of $28.59 billion, a PE ratio of -158.06, a P/E/G ratio of 0.89 and a beta of 1.22. The business has a 50-day moving average of $83.69 and a 200-day moving average of $96.43. 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 has a 1-year low of $56.66 and a 1-year high of $121.64.

Estee Lauder Companies Dividend Announcement

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

Analyst Upgrades and Downgrades

EL has been the topic of a number of recent research reports. JPMorgan Chase & Co. reduced their target price on shares of Estee Lauder Companies from $121.00 to $98.00 and set an “overweight” rating on the stock in a research report on Friday, April 17th. Royal Bank Of Canada reissued an “outperform” rating and set a $113.00 target price on shares of Estee Lauder Companies in a research report on Tuesday, February 3rd. HSBC cut shares of Estee Lauder Companies from a “buy” rating to a “hold” rating and set a $106.00 target price on the stock. in a research report on Tuesday, February 10th. Deutsche Bank Aktiengesellschaft reduced their target price on shares of Estee Lauder Companies from $124.00 to $108.00 and set a “buy” rating on the stock in a research report on Monday, March 30th. Finally, Jefferies Financial Group initiated coverage on shares of Estee Lauder Companies in a research report on Wednesday, January 14th. They set a “hold” rating and a $110.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Estee Lauder Companies presently has a consensus rating of “Hold” and an average price target of $97.95.

Institutional Trading of Estee Lauder Companies

Several institutional investors have recently added to or reduced their stakes in the stock. Parkside Financial Bank & Trust grew its position in shares of Estee Lauder Companies by 17.9% during the fourth quarter. Parkside Financial Bank & Trust now owns 743 shares of the company’s stock valued at $78,000 after purchasing an additional 113 shares in the last quarter. UMB Bank n.a. grew its position in shares of Estee Lauder Companies by 26.0% during the fourth quarter. UMB Bank n.a. now owns 698 shares of the company’s stock valued at $73,000 after purchasing an additional 144 shares in the last quarter. Police & Firemen s Retirement System of New Jersey grew its position in shares of Estee Lauder Companies by 0.4% during the fourth quarter. Police & Firemen s Retirement System of New Jersey now owns 37,730 shares of the company’s stock valued at $3,951,000 after purchasing an additional 156 shares in the last quarter. Zions Bancorporation National Association UT grew its position in shares of Estee Lauder Companies by 6.0% during the fourth quarter. Zions Bancorporation National Association UT now owns 2,893 shares of the company’s stock valued at $303,000 after purchasing an additional 165 shares in the last quarter. Finally, Beacon Pointe Advisors LLC grew its position in shares of Estee Lauder Companies by 1.0% during the fourth quarter. Beacon Pointe Advisors LLC now owns 18,404 shares of the company’s stock valued at $1,927,000 after purchasing an additional 183 shares in the last quarter. 55.15% of the stock is owned by institutional investors and hedge funds.

More Estee Lauder Companies News

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

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.