"EPS: $0.89 vs. $0.86 estimate (3.5% beat) Revenue: $4.23 billion vs. $4.34 billion estimate (in line), up 6% year-over-year Adjusted Operating Margin: 14.4%, up 290 basis points from prior year Guidance Raised: FY2026 adjusted EPS now $2.05-$2.25 (36-49% growth) Stock Reaction: Shares dropped 18.7% over the past week despite raised guidance Estée Lauder delivered a mixed quarter, beating earnings expectations while revenue met estimates."
"The company posted operating income of $401 million, a dramatic swing from the $(580) million loss in the prior year period that included $861 million in impairments. Gross margin expanded 40 basis points to 76.5%, while first-half free cash flow surged to $581 million from $114 million a year earlier. The revenue figure reflects ongoing challenges in makeup and travel retail."
Estée Lauder reported EPS of $0.89 versus $0.86 estimate and revenue of $4.23 billion, up 6% year-over-year but in line with expectations. Operating income rose to $401 million from a prior-year loss that included impairments, gross margin expanded to 76.5%, and first-half free cash flow increased to $581 million. Makeup and travel retail showed weakness while skin care and fragrance grew 6% organically and mainland China sales jumped 13%. Full-year guidance was raised to $2.05–$2.25 adjusted EPS, with an expected roughly $100 million tariff headwind in the second half.
Read at 24/7 Wall St.
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