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Dec 31, 2025
Coty Q2 2026 Earnings Report
Results were broadly in line with outlook while net debt and leverage reached multi-year lows.
Key Takeaways
Coty delivered Q2 FY26 results broadly in line with expectations, with modest revenue growth driven by Prestige, a reported net loss impacted by the Wella divestiture, and very strong free cash flow that significantly reduced net debt and leverage.
Revenue increased slightly to $1.68 billion, with Prestige offsetting Consumer Beauty declines
Reported net loss reflected Wella divestiture and equity swap impacts
Free cash flow exceeded $500 million, strengthening the balance sheet
Net debt and leverage fell to the lowest levels in nearly a decade
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company withdrew full-year FY26 guidance and provided outlook only for Q3 amid a challenging beauty market and leadership transition.
Positive Outlook
- Prestige fragrance market expected to grow low-to-mid single digits
- Retailer destocking headwinds easing versus prior quarters
- Strong innovation pipeline with major fragrance launches
- Continued focus on market share recovery in key regions
- Balance sheet strength provides financial flexibility
Challenges Ahead
- Q3 like-for-like revenue expected to decline mid-single digits
- Consumer Beauty trends remain weak, especially in cosmetics
- Gross margin expected to decline 200–300 basis points year-over-year
- Promotional intensity remains elevated
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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