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Sep 30, 2025
Estee Lauder Q1 2026 Earnings Report
Estee Lauder reported a return to profitability and modest revenue growth in Q1 2026.
Key Takeaways
Estee Lauder posted a solid start to fiscal 2026 with a net income of $47M, driven by growth in Asia travel retail and luxury fragrance brands, alongside improved operational efficiency.
Returned to profitability with $47M in net income after a $156M loss in the prior year.
Revenue rose 4% to $3.48B, supported by strong performance in Asia/Pacific and luxury fragrance.
Adjusted EPS more than doubled year-over-year to $0.32.
Operating margin expanded significantly due to restructuring and cost-cutting under the PRGP.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company reaffirmed its fiscal 2026 outlook, targeting a return to sales growth and margin expansion amid restructuring and efficiency efforts.
Positive Outlook
- Reaffirmed FY26 outlook with focus on profitability.
- Majority of PRGP benefits expected in FY27.
- Organic sales growth expected in all regions.
- Continued innovation and expanded brand distribution.
- Restructuring actions to yield up to $1B in annual gross benefits.
Challenges Ahead
- Tariff-related headwinds expected to impact FY26 profit by ~$100M.
- Challenging North America retail environment with store closures and elevated inventory.
- Currency volatility remains a concern.
- Softness in Hair Care continues due to Aveda restructuring.
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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