Estee Lauder Companies (NYSE:EL) Announces Quarterly Earnings Results, Beats Estimates By $0.05 EPS

Estee Lauder Companies (NYSE:EL) announced its quarterly earnings results on Thursday. The company reported $0.89 EPS for the quarter, topping analysts’ consensus estimates of $0.84 by $0.05, Briefing.com reports. Estee Lauder Companies had a positive return on equity of 14.92% and a negative net margin of 6.44%.The business had revenue of $4.23 billion for the quarter, compared to analysts’ expectations of $4.22 billion. During the same period in the previous year, the firm earned $0.62 EPS. The business’s quarterly revenue 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 Down 20.9%

EL stock traded down $24.95 during midday trading on Thursday, hitting $94.66. The stock had a trading volume of 11,103,665 shares, compared to its average volume of 3,807,226. The business has a 50-day moving average of $108.98 and a two-hundred day moving average of $97.31. The company has a debt-to-equity ratio of 1.88, a current ratio of 1.32 and a quick ratio of 0.92. The firm has a market cap of $34.11 billion, a price-to-earnings ratio of -36.71, a price-to-earnings-growth ratio of 1.36 and a beta of 1.14. Estee Lauder Companies has a 52-week low of $48.37 and a 52-week high of $121.64.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the stock. Jefferies Financial Group started coverage on shares of Estee Lauder Companies in a research report on Wednesday, January 14th. They set a “hold” rating and a $110.00 price target for the company. Citigroup increased their target price on shares of Estee Lauder Companies from $110.00 to $120.00 and gave the stock a “neutral” rating in a report on Wednesday, January 14th. Evercore ISI raised their target price on Estee Lauder Companies from $115.00 to $125.00 and gave the stock an “outperform” rating in a research note on Tuesday, December 16th. The Goldman Sachs Group raised Estee Lauder Companies from a “neutral” rating to a “buy” rating and upped their price target for the company from $76.00 to $115.00 in a research report on Monday, October 13th. Finally, Rothschild Redb lowered Estee Lauder Companies from a “hold” rating to a “strong sell” rating in a research report on Tuesday, November 25th. Three research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, eleven have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $103.00.

Key Stories Impacting Estee Lauder Companies

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

• Positive Sentiment: Q2 beat — EL posted $0.89 EPS vs. $0.84 consensus and revenue of $4.23B (up ~5.6% YoY), showing resilient demand across regions. Zacks: EL Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Management and CEO cite progress on the “Beauty Reimagined” turnaround and raised sales outlook, underpinning confidence in improving China demand and operational changes. Reuters: Estee Lauder raises annual sales forecast
• Neutral Sentiment: FY26 guidance set to $2.03–$2.23 EPS and revenue $14.8–$15.0B — guidance still implies growth but the EPS range sits around/below some consensus expectations, leaving investor judgment mixed. Business Wire: Fiscal 2026 Q2 Results
• Positive Sentiment: Analyst support: RBC reiterated an “Outperform” with a $113 target, which provides a constructive near-term technical/analyst backdrop. AmericanBankingNews: RBC Reiterates Outperform
• Negative Sentiment: Tariff headwind — company warns tariffs will reduce profit by ~ $100M (mostly in H2), a direct hit to margins that analysts note will pressure full-year profit. WSJ: Estee Lauder Lifts Outlook, Warns of Tariff Impact
• Negative Sentiment: Restructuring and one-time charges materially reduced reported profit this quarter — coverage notes the restructuring wiped out roughly half of quarterly profit, amplifying the headline impact despite the beat. Barron’s: Restructuring and Tariffs Take Bite Out of Earnings
• Negative Sentiment: Margin pressure persists: despite positive ROE, the company reported a negative net margin, underscoring conversion of revenue into profit remains a near-term concern. Zacks: Key Metrics vs. Estimates

Insiders Place Their Bets

In related news, Director Barry S. Sternlicht sold 3,972 shares of the business’s stock in a transaction dated Tuesday, November 11th. The shares were sold at an average price of $91.83, for a total transaction of $364,748.76. Following the sale, the director owned 34,812 shares of the company’s stock, valued at $3,196,785.96. The trade was a 10.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, 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 transaction of $476,971.20. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 13.05% of the company’s stock.

Institutional Trading of Estee Lauder Companies

Institutional investors and hedge funds have recently bought and sold shares of the company. Wellington Management Group LLP lifted its stake in shares of Estee Lauder Companies by 3,986.4% in the third quarter. Wellington Management Group LLP now owns 2,082,217 shares of the company’s stock worth $183,485,000 after buying an additional 2,031,262 shares in the last quarter. Franklin Resources Inc. raised its holdings 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 acquiring an additional 1,403,807 shares during the last quarter. Two Sigma Investments LP purchased a new position in Estee Lauder Companies in the 3rd quarter worth approximately $51,330,000. Zurich Insurance Group Ltd FI bought a new position in Estee Lauder Companies in the 3rd quarter valued at approximately $50,651,000. Finally, Voloridge Investment Management LLC boosted its stake in Estee Lauder Companies by 30.5% during the 3rd quarter. Voloridge Investment Management LLC now owns 1,346,513 shares of the company’s stock valued at $118,655,000 after purchasing an additional 314,974 shares during the last quarter. 55.15% of the stock is currently owned by institutional investors.

Estee Lauder Companies Company Profile

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.