Estée Lauder Returns to Growth: FY26 Sales +5%, Raises FY27 Margin Outlook
EL sits 38% above its 52-week low of $66.22.
Summary
Estée Lauder reported fiscal 2026 results with 5% net sales growth and a return to profitability, and raised its fiscal 2027 adjusted operating margin outlook to 12.7-13.5%.
Key Events · Earnings and Guidance · EL
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FY26 Results Beat Expectations
Net sales rose 5% to $15.05B, organic sales up 3%, and adjusted EPS jumped 66% to $2.51. Adjusted operating margin expanded 320bps to 11.2%.
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FY27 Margin Outlook Raised
Company raised adjusted operating margin guidance to 12.7-13.5% from 12.5-13.0%, with organic sales growth of 3-5% and adjusted EPS of $3.10-$3.35.
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Restructuring Program Finalized
Total cumulative charges of $1.4B recognized, expected to slightly exceed $1.7B high-end. 10,000 net position reductions and $1.2B annual gross benefits.
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Securities Class Action Settlement Funded
The $84M loss contingency (net of insurance) related to the securities class action has been fully funded as of June 30, 2026, pending final court approval.
Analysis · EL · Industrial Applications And Services
A strong fiscal 2026 for Estée Lauder saw organic sales up 3% and adjusted operating margin expanding 320 basis points to 11.2%, driven by its Beauty Reimagined restructuring. The company raised its fiscal 2027 adjusted operating margin outlook to 12.7-13.5%, signaling confidence in continued profitability gains. The results mark a clear turnaround from the prior year's $1.13B net loss, with adjusted EPS up 66% to $2.51. The restructuring program is now fully approved, with total charges expected to slightly exceed $1.7B but yielding $1.2B in annual gross benefits. The securities class action settlement has been funded, removing a key overhang. This is a thesis-altering earnings report for a company that was in distress just a year ago.
At the time of this filing, EL was trading at $91.50 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $30.5B. The 52-week trading range was $66.22 to $121.64. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.