Estee Lauder Companies (NYSE:EL) Announces Earnings Results

Estee Lauder Companies (NYSE:EL) announced its earnings results on Thursday. The company reported $0.89 EPS for the quarter, topping the consensus estimate of $0.84 by $0.05, Briefing.com reports. Estee Lauder Companies had a positive return on equity of 17.59% and a negative net margin of 1.21%.The company had revenue of $4.23 billion for the quarter, compared to analysts’ expectations of $4.22 billion. During the same quarter in the prior year, the business earned $0.62 earnings per share. The business’s revenue for the quarter was up 5.6% on a year-over-year basis. Estee Lauder Companies updated its FY 2026 guidance to 2.030-2.230 EPS.

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

• Estée Lauder raised its fiscal 2026 outlook after a strong Q2 — 4% organic sales growth, 43% EPS growth, and updated full‑year guidance of +1% to +3% organic sales and diluted EPS of $2.05–$2.25.
• Mainland China and digital channels outperformed, with double‑digit growth in Mainland China, high‑single‑digit growth in Hainan, notable market‑share gains across categories, and online sales set to exceed last year’s ~31% reported sales mix.
• Management accelerated innovation and go‑to‑market execution — targeting at least 25% of sales from innovation and increasing sub‑one‑year launches to 19%, citing wins like Estée Lauder’s Double Wear concealer and strong momentum for The Ordinary.
• Transformation costs and operational changes present near‑term headwinds — the company has recorded $904 million of cumulative restructuring charges and expects some short‑term cost pressure as it migrates to the new One ELC/Accenture enterprise services model.

Estee Lauder Companies Stock Up 3.0%

NYSE:EL opened at $99.59 on Friday. The company has a quick ratio of 0.92, a current ratio of 1.36 and a debt-to-equity ratio of 1.82. Estee Lauder Companies has a 12-month low of $48.37 and a 12-month high of $121.64. The stock’s fifty day simple moving average is $109.17 and its 200-day simple moving average is $97.40. The firm has a market capitalization of $35.89 billion, a P/E ratio of -199.18, a P/E/G ratio of 1.15 and a beta of 1.14.

Estee Lauder Companies Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, March 16th. Stockholders of record on Friday, February 27th will be given a $0.35 dividend. This represents a $1.40 annualized dividend and a dividend yield of 1.4%. The ex-dividend date is Friday, February 27th. Estee Lauder Companies’s dividend payout ratio (DPR) is currently -54.26%.

Key Stories Impacting Estee Lauder Companies

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

• Positive Sentiment: Q2 results beat expectations (EPS $0.89 vs. $0.84) and management raised full‑year sales/earnings guidance, supported by stronger China sales and progress on the “Beauty Reimagined” turnaround — a core reason buyers are returning. Business Wire: Fiscal Q2 Results
• Positive Sentiment: Major brokers showed support: Citigroup upgraded EL to “buy” with a $120 PT and Bank of America reiterated a Buy with re‑rating potential, signaling conviction among some institutional analysts that fundamentals and margin upside remain attractive. Benzinga: Citigroup Upgrade
• Positive Sentiment: Company announced a quarterly dividend (record Feb 27; pay Mar 16), which supports income investors and can help stabilize shares amid the volatility.
• Neutral Sentiment: Several analysts trimmed price targets but left constructive ratings: JPMorgan cut its PT to $121 while staying “overweight” and Wells Fargo lowered its PT to $105 with an “equal weight” call — suggesting cautious optimism but reduced upside assumptions. Benzinga: PT Changes
• Neutral Sentiment: Telsey Advisory Group reaffirmed “market perform” with a $105 target, reflecting mixed analyst views on short‑term growth versus longer‑term restructuring benefits. Benzinga: Telsey Reaffirmation
• Negative Sentiment: Management warned tariffs will shave roughly $100M off full‑year profitability (mostly in H2), pressuring margins and prompting talk of potential pricing actions — a clear near‑term headwind. CNBC: Tariff Headwinds
• Negative Sentiment: Despite the beat, the company’s cautious guidance and restructuring costs led to a heavy sell‑off (shares fell sharply earlier on the outlook and restructuring impact), showing how sensitive EL is to near‑term profit expectations. Investopedia: What Dragged Shares Lower
• Negative Sentiment: Coverage and commentary questioning EL’s valuation and the pace of the turnaround have amplified volatility — several headlines ask whether to trim positions after the drop, keeping sentiment fragile in the near term. Forbes: Should You Cut Your Position?

Analysts Set New Price Targets

EL has been the subject of a number of research analyst reports. Argus raised shares of Estee Lauder Companies from a “hold” rating to a “buy” rating and set a $105.00 target price for the company in a research note on Tuesday, November 11th. 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. Royal Bank Of Canada restated an “outperform” rating and issued a $113.00 price objective on shares of Estee Lauder Companies in a research report on Tuesday. Telsey Advisory Group reiterated a “market perform” rating and issued a $105.00 price objective on shares of Estee Lauder Companies in a research report on Thursday. Finally, Rothschild & Co Redburn cut Estee Lauder Companies from a “neutral” rating to a “sell” rating and lowered their target price for the company from $83.00 to $70.00 in a research note on Tuesday, November 25th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Estee Lauder Companies has an average rating of “Moderate Buy” and an average price target of $103.27.

Insider Transactions at Estee Lauder Companies

In other news, VP Meridith Webster sold 5,430 shares of the company’s stock in a transaction dated Tuesday, November 18th. The stock was sold at an average price of $87.84, for a total value of $476,971.20. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Barry S. Sternlicht sold 3,972 shares of the stock in a transaction that occurred on Tuesday, November 11th. The shares were sold at an average price of $91.83, for a total transaction of $364,748.76. Following the completion of the sale, the director owned 34,812 shares in the company, valued at $3,196,785.96. This represents a 10.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 13.05% of the company’s stock.

Hedge Funds Weigh In On Estee Lauder Companies

Several institutional investors and hedge funds have recently modified their holdings of the business. State Street Corp lifted its stake in Estee Lauder Companies by 2.4% in the third quarter. State Street Corp now owns 11,118,587 shares of the company’s stock valued at $979,770,000 after buying an additional 259,048 shares in the last quarter. Northern Trust Corp raised its holdings in shares of Estee Lauder Companies by 0.4% during the third quarter. Northern Trust Corp now owns 2,451,128 shares of the company’s stock worth $215,993,000 after acquiring an additional 9,969 shares during the period. Wellington Management Group LLP lifted its position in Estee Lauder Companies by 3,986.4% in the 3rd quarter. Wellington Management Group LLP now owns 2,082,217 shares of the company’s stock valued at $183,485,000 after acquiring an additional 2,031,262 shares in the last quarter. Legal & General Group Plc lifted its position in Estee Lauder Companies by 3.6% in the 3rd quarter. Legal & General Group Plc now owns 1,696,672 shares of the company’s stock valued at $149,511,000 after acquiring an additional 59,022 shares in the last quarter. Finally, Franklin Resources Inc. boosted its stake in Estee Lauder Companies by 1,193.8% in the 3rd quarter. Franklin Resources Inc. now owns 1,521,399 shares of the company’s stock worth $134,066,000 after purchasing an additional 1,403,807 shares during the period. 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.