Ulta Beauty (NASDAQ:ULTA) Releases Earnings Results, Beats Estimates By $0.08 EPS

Ulta Beauty (NASDAQ:ULTA) announced its quarterly earnings data on Thursday. The specialty retailer reported $8.01 EPS for the quarter, beating analysts’ consensus estimates of $7.93 by $0.08, FiscalAI reports. The company had revenue of $3.90 billion during the quarter, compared to the consensus estimate of $3.81 billion. Ulta Beauty had a net margin of 9.31% and a return on equity of 44.44%. The company’s quarterly revenue was up 11.8% on a year-over-year basis. During the same quarter last year, the firm posted $8.46 EPS. Ulta Beauty updated its FY 2026 guidance to 28.050-28.550 EPS.

Here are the key takeaways from Ulta Beauty’s conference call:

• Strong fiscal 2025 results — net sales rose nearly 10% to $12.4B, comparable sales +5.4%, operating income of $1.5B (12.4% of sales) and EPS of $25.64, outpacing guidance.
• Ulta Beauty Unleashed investments in omni‑channel execution, marketing, personalization and assortment (including ~100 new brands) grew loyalty to 46.7 million members and helped regain market share, which management says will drive future growth.
• Management provided a constructive FY26 outlook — net sales +6–7% to $13.1–13.2B, comps +2.5–3.5%, operating profit +6–9%, EPS of $28.05–$28.55, and an intent to return ~$1B to shareholders via buybacks.
• Expense and margin pressure — FY25 SG&A rose materially (quarterly SG&A +23%, FY SG&A +17.4%) driven by incentive pay, Space NK and investment spend; gross margin faced headwinds from channel mix and store fixed‑cost deleverage.
• Management is scaling new growth channels — international expansion (Space NK, Mexico, Middle East), a curated marketplace (5,000 SKUs), TikTok Shop launch and supply‑chain automation — which are expected to improve inventory productivity and incremental profit over time.

Ulta Beauty Stock Down 14.2%

Ulta Beauty stock opened at $535.72 on Friday. The company’s 50-day moving average price is $665.60 and its two-hundred day moving average price is $586.85. The stock has a market cap of $23.76 billion, a P/E ratio of 20.90, a P/E/G ratio of 2.84 and a beta of 0.82. Ulta Beauty has a twelve month low of $323.36 and a twelve month high of $714.97.

Key Ulta Beauty News

Here are the key news stories impacting Ulta Beauty this week:

• Positive Sentiment: Q4 top-line beat — net sales rose ~11.8% to about $3.9B, driven by comps and new stores, showing resilient demand. Read More.
• Positive Sentiment: Digital momentum and new channels: Ulta cites AI-driven personalization boosting e‑commerce and is launching a curated assortment on TikTok Shop to reach younger customers. Read More.
• Neutral Sentiment: FY2026 outlook shows growth but slower cadence — management guided to mid-single-digit sales growth (roughly 6–7%) and provided an EPS range; the plan signals continued growth but a deceleration from FY25. Read More.
• Neutral Sentiment: Analysts largely keep positive ratings but are trimming price targets after the print — many firms reaffirm buy/overweight while lowering targets to reflect the more cautious margin/advertising outlook. Read More.
• Negative Sentiment: Margin pressure from rising costs and higher SG&A — operating margin compressed as advertising, incentive compensation and strategic investments increased, squeezing EPS versus last year. Read More.
• Negative Sentiment: Market disappointed by the forward profit signal — investors viewed the FY26 profit/same-store-sales targets and incremental spending as conservative or risk-increasing, triggering heavy selling and analyst target resets. Read More.
• Negative Sentiment: High-volume selloff and volatile sentiment — the post-earnings move has driven large intraday volume and rapid target revisions, increasing short-term downside risk despite longer-term bullish arguments. Read More.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on ULTA shares. Deutsche Bank Aktiengesellschaft set a $732.00 target price on shares of Ulta Beauty in a research note on Thursday, January 8th. Robert W. Baird set a $700.00 price objective on Ulta Beauty in a research note on Wednesday, December 17th. Telsey Advisory Group raised their price objective on Ulta Beauty from $640.00 to $715.00 and gave the company an “outperform” rating in a research report on Monday, March 9th. DA Davidson boosted their target price on Ulta Beauty from $625.00 to $650.00 and gave the stock a “buy” rating in a report on Friday, December 5th. Finally, Raymond James Financial restated a “strong-buy” rating on shares of Ulta Beauty in a research note on Tuesday. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $671.27.

Hedge Funds Weigh In On Ulta Beauty

Institutional investors and hedge funds have recently made changes to their positions in the company. BOKF NA acquired a new stake in Ulta Beauty during the 3rd quarter worth approximately $31,000. Virtus Advisers LLC bought a new stake in Ulta Beauty in the 4th quarter valued at $33,000. Greenline Wealth Management LLC acquired a new position in Ulta Beauty in the 4th quarter valued at $37,000. DV Equities LLC bought a new position in Ulta Beauty during the 4th quarter worth $38,000. Finally, Darwin Wealth Management LLC bought a new position in Ulta Beauty during the 2nd quarter worth $50,000. Institutional investors and hedge funds own 90.39% of the company’s stock.

Ulta Beauty Company Profile

Ulta Beauty, Inc (NASDAQ: ULTA) is a U.S.-based specialty retailer and beauty services provider focused on cosmetics, fragrance, skin care, hair care, bath and body, and beauty tools. The company operates a dual-format business that combines brick-and-mortar retail stores with an e-commerce platform, offering a broad assortment of national, prestige and mass-market brands alongside its own private-label products. In many locations Ulta also provides full-service salon treatments, positioning the company as a one-stop destination for product discovery and in-store services.

The retailer’s product mix spans color cosmetics, haircare and styling products, skin and body care, fragrance, and accessories, catering to a wide range of consumer preferences and price points.