Estee Lauder Companies (NYSE:EL) Posts Earnings Results, Beats Expectations By $0.05 EPS

Estee Lauder Companies (NYSE:EL) issued its earnings results on Thursday. The company reported $0.89 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.84 by $0.05, Briefing.com reports. Estee Lauder Companies had a negative net margin of 6.44% and a positive return on equity of 14.92%. The firm had revenue of $4.23 billion for the quarter, compared to analysts’ expectations of $4.22 billion. During the same quarter last year, the business earned $0.62 earnings per share. The business’s 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 19.5%

NYSE:EL traded down $23.33 during mid-day trading on Thursday, hitting $96.28. 11,874,533 shares of the company’s stock were exchanged, compared to its average volume of 3,829,338. The company has a market cap of $34.69 billion, a PE ratio of -37.20, a P/E/G ratio of 1.36 and a beta of 1.14. The company has a debt-to-equity ratio of 1.88, a current ratio of 1.32 and a quick ratio of 0.92. Estee Lauder Companies has a one year low of $48.37 and a one year high of $121.64. The business has a fifty day moving average price of $108.98 and a 200 day moving average price of $97.31.

Estee Lauder Companies News Roundup

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

• Positive Sentiment: Q2 beat — EL beat EPS and revenue estimates and reported year‑over‑year revenue growth, showing traction from its “Beauty Reimagined” turnaround, which supports medium‑term recovery expectations. The Estée Lauder Companies Reports Fiscal 2026 Second Quarter Results
• Positive Sentiment: Raised sales outlook — management raised its annual sales forecast and issued FY26 EPS guidance (2.03–2.23), signaling confidence in China demand and the turnaround plan. That supports revenue momentum expectations even if EPS guidance is conservative. Estee Lauder raises annual sales forecast
• Neutral Sentiment: Restructuring progress — the company says cost‑savings and improved free cash flow are coming from its restructuring, which is positive long term but is driving near‑term profit volatility as actions complete. The Estée Lauder Companies Inc. (EL) Q2 2026 Earnings Call Transcript
• Negative Sentiment: Tariff headwind — management warned of roughly $100M in tariff‑related profit pressure for the year and is considering price actions to offset costs; that is an explicit drag on margins and near‑term earnings. Estée Lauder expects $100 million in tariff headwinds to its full-year profitability
• Negative Sentiment: Charges hit profit — writers and analysts note that restructuring and related charges materially reduced reported profit this quarter, which, combined with tariff risk and a cautious outlook, prompted strong negative market reaction. Estee Lauder Stock Sinks. Restructuring and Tariffs Take Bite Out of Earnings.
• Negative Sentiment: Valuation criticism — some analysts argue EL’s valuation premium is unjustified given sub‑4% organic growth, flat U.S. sales and ongoing execution risks, which adds downward pressure on sentiment. Estee Lauder: Valuation Premium Is Unjustified

Wall Street Analyst Weigh In

EL has been the subject of a number of analyst reports. Raymond James Financial upgraded shares of Estee Lauder Companies from a “market perform” rating to a “strong-buy” rating and set a $130.00 target price for the company in a report on Monday, January 5th. Telsey Advisory Group reaffirmed a “market perform” rating and set a $105.00 price target on shares of Estee Lauder Companies in a research report on Thursday. JPMorgan Chase & Co. increased their price objective on Estee Lauder Companies from $116.00 to $131.00 and gave the stock an “overweight” rating in a report on Friday, January 16th. Wall Street Zen upgraded Estee Lauder Companies from a “hold” rating to a “buy” rating in a research report on Saturday, January 17th. Finally, Royal Bank Of Canada restated an “outperform” rating and set a $113.00 target price on shares of Estee Lauder Companies in a report on Tuesday. Three analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, eleven have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $103.00.

Insider Activity at Estee Lauder Companies

In other news, VP Meridith Webster sold 5,430 shares of the business’s stock in a transaction that occurred on Tuesday, November 18th. The stock was sold at an average price of $87.84, for a total value of $476,971.20. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Barry S. Sternlicht sold 3,972 shares of the company’s stock in a transaction that occurred on Tuesday, November 11th. The stock was sold at an average price of $91.83, for a total value of $364,748.76. Following the completion of the sale, the director owned 34,812 shares in the company, valued at $3,196,785.96. The trade was a 10.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 13.05% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Estee Lauder Companies

Several large investors have recently bought and sold shares of EL. Laird Norton Wetherby Wealth Management LLC grew its holdings in shares of Estee Lauder Companies by 31.9% in the third quarter. Laird Norton Wetherby Wealth Management LLC now owns 3,594 shares of the company’s stock worth $317,000 after acquiring an additional 869 shares during the period. Horizon Investments LLC grew its stake in shares of Estee Lauder Companies by 39.5% during the 3rd quarter. Horizon Investments LLC now owns 5,083 shares of the company’s stock valued at $448,000 after purchasing an additional 1,439 shares during the period. Vise Technologies Inc. increased its position in shares of Estee Lauder Companies by 6.7% during the 3rd quarter. Vise Technologies Inc. now owns 3,114 shares of the company’s stock valued at $274,000 after purchasing an additional 196 shares during the last quarter. Orion Porfolio Solutions LLC boosted its holdings in shares of Estee Lauder Companies by 12.6% in the second quarter. Orion Porfolio Solutions LLC now owns 3,750 shares of the company’s stock worth $303,000 after buying an additional 421 shares during the last quarter. Finally, WINTON GROUP Ltd bought a new stake in Estee Lauder Companies during the second quarter valued at approximately $447,000. 55.15% of the stock is currently owned by institutional investors.

About Estee Lauder Companies

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.