Estee Lauder (EL) Q3 2026 (USD): EPS 0.91 (exp. 0.65), revenue 3.7bln (exp. 3.7bln); raises outlook
- Fragrance revenue +13%
- Skin Care +3%
- Makeup +4%
- Hair Care +2%
- Mainland China sales rose 11%, and 6% organically.
COMMENTARY:
- CEO said Q3 extended strong year-to-date performance driven by Beauty Reimagined, with Mainland China outperforming prestige beauty, and said FY26 is on track to restore organic sales growth and expand adjusted operating margin for the first time in four years.
- Increasing net job reductions to 9-10k (prev. guided 5.8-7k)
GUIDANCE:
- FY26 EPS seen between 2.35-2.45 (exp. 2.22; prev. saw 2.05-2.25)
- adj. operating margin between 10.7-11%
- Organic net sales growth of c. 3%, upper end of guided range.
- FY27 Organic Revenue 3-5%.
Context
Estee Lauder's Q3 earnings significantly exceeded expectations, with EPS coming in at 0.91 versus a forecast of 0.65, while revenues met consensus at $3.7 billion. The positive outlook raises EPS projections for FY26, signaling a potential recovery in organic growth and margin expansion, particularly driven by strong sales in Mainland China. The company's increased job reductions may indicate ongoing restructuring, but overall, this suggests confidence in their path forward despite operational challenges.
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