Estee Lauder reported strong FY26 results, returning to growth and significantly expanding margins. Management raised FY27 operating margin guidance, provided a revenue outlook of 3-5% growth, and detailed a successful transformation strategy (PRGP/BEAUTY REIMAGINED) focused on cost savings, consumer-facing investments, and channel diversification. FY26 revenue growth was 3% organically, with FY26 EPS of $2.51 and operating margin of 11.2%.
Buzzberg readFiscal 2027 margin outlook raised to 12.7-13.5%Estee Lauder reported strong FY26 results, returning to growth and significantly expanding margins. Management raised FY27 operating margin guidance, provided a revenue outlook of 3-5% growth, and detailed a successful transformation strategy (PRGP/BEAUTY REIMAGINED) focused on cost savings, consumer-facing investments, and channel diversification. FY26 revenue growth was 3% organically, with FY26 EPS of $2.51 and operating margin of 11.2%.Read full analysisCollapse analysis
Estee Lauder reported strong FY26 results, returning to growth and significantly expanding margins. Management raised FY27 operating margin guidance, provided a revenue outlook of 3-5% growth, and detailed a successful transformation strategy (PRGP/BEAUTY REIMAGINED) focused on cost savings, consumer-facing investments, and channel diversification. FY26 revenue growth was 3% organically, with FY26 EPS of $2.51 and operating margin of 11.2%.
FY27 guidance includes 3-5% organic revenue growth, operating margin of 12.7-13.5%, and EPS of $3.10-$3.35.
Management raised the preliminary FY27 operating margin outlook, citing strong cost synergies and execution.
Global travel retail returned to positive retail sales in June-July, led by double-digit growth in Hainan.
Revenue$3.618B
-3% QoQ
EPS$0.39
-57% QoQ
Gross margin80.9%
reported
Op margin-9.23%
reported
What changed this quarter
01
Guidance
Fiscal 2027 margin outlook raised to 12.7-13.5%
Guidance · revenue to 4%
02
Demand
Global travel retail returns to positive growth
Management reports strong demand signals, including a return to organic sales growth in the US in Q4 with mid-single-digit retail sales growth, and global travel retail turning positive for the first time in three years, led by double-digit growth in Hainan. The company also…
03
Guidance
Fiscal 2027 sales guidance: 3-5% organic growth
Guidance · revenue to 4%
04
Demand
North America returns to organic sales growth in Q4
Management reports strong demand signals, including a return to organic sales growth in the US in Q4 with mid-single-digit retail sales growth, and global travel retail turning positive for the first time in three years, led by double-digit growth in Hainan. The company also…
Demand & capex
Demand
Bookings & conversion
Management reports strong demand signals, including a return to organic sales growth in the US in Q4 with mid-single-digit retail sales growth, and global travel retail turning positive for the first time in three years, led by double-digit growth in Hainan. The company also notes strong momentum in China with six consecutive quarters of market share gains.
Capex
Investment and capacity
CapEx is expected to be approximately 4% of sales in fiscal 2027, down from $457 million in fiscal 2026, with a continued focus on consumer-facing investments to fuel growth, including upgrades to brick-and-mortar and online distribution channels.
Tone · Confident
Management repeatedly emphasizes success of the transformation, accelerated growth, and raised margin outlook, while framing fiscal 2027 as a year of acceleration.
Supply-chain alpha
A1
Estee Lauder is pushing 'less promotional' strategies and valorization in China, which is contributing to its market share gains in a high-single-digit growth prestige market.
“in China, we are now less promotional. We've really pushed the valorization in the market that have really allowed us to just like, you know, recruit new consumers”
Global travel retail (TR) has returned to positive retail territory for the first time in three years for June and July, led by double-digit growth in Hainan and strong momentum in Korea, Hong Kong, and Southeast Asia.
“For the first time in three years, for the months of June and the months of July, we are back into positive territory for travel retail global, led by Hainan, that is in double-digit growth”
The new unified global media model with WPP is being deployed rapidly, with over 1,500 campaigns already launched and AI being used for real-time personalization.
Estee Lauder is migrating its direct-to-consumer e-commerce platform to Shopify, representing a significant new enterprise client for Shopify and a major shift in the beauty company's tech stack.
“We launched macusbrand.com on Shopify last week, the first of many deployments online and in-store across brands around the world in fiscal 27”
… Beauty's growth again in fiscal 27. Our first quarter innovations are extensive, from Balmain Beauty along with the new Prestige line from Kylian Paris and Estée Lauder to Jo Malone London and Tom Ford in the luxury price tier. We introduce distinctive scents to drive new consumer acquisitions across demographics and regional preferences. For one ELC operating ecosystem, we are advancing with speed across our three biggest initiatives. We launched macusbrand.com on Shopify last week, the first of many deployments online and in-store across brands around the world in fiscal 27, as we modernize capabilities in our direct-to-consumer business to drive growth. For Enterprise Business Services, we are on track to have transitioned about 80% of the expected roles by September, while also standardizing select processes and standing up key AI-enabled technologies to facilitate service delivery and productivity. For our new unified global media model, most of our markets have transitioned to WPP, already lighting up over 1500 campaigns and harnessing AI for real-time personalization for many of our performance campaigns. And we expanded our collaboration with Meta, leveraging their …
The new unified global media model with WPP is being deployed rapidly, with over 1,500 campaigns already launched and AI being used for real-time personalization. — This confirms a major consolidation of a large advertiser's media spend under WPP and signals a fast shift towards AI-driven performance marketing, benefiting both WPP and Meta.
“we expanded our collaboration with Meta, leveraging their AI-powered tool built for advertising, conversational commerce, and adjunct messaging”
… first of many deployments online and in-store across brands around the world in fiscal 27, as we modernize capabilities in our direct-to-consumer business to drive growth. For Enterprise Business Services, we are on track to have transitioned about 80% of the expected roles by September, while also standardizing select processes and standing up key AI-enabled technologies to facilitate service delivery and productivity. For our new unified global media model, most of our markets have transitioned to WPP, already lighting up over 1500 campaigns and harnessing AI for real-time personalization for many of our performance campaigns. And we expanded our collaboration with Meta, leveraging their AI-powered tool built for advertising, conversational commerce, and adjunct messaging across our brand portfolio to reflect the new consumer behavior of where they are interacting with brands. Now, let me close where I began. I am proud of our Fiscal 26 result. In Beauty Reimagined, we have a winning playbook, and I am confident we will deliver another strong year in fiscal 27. We have the right brands, the right team, a clear momentum, onward and upward. I will now turn the call over to Akhil.
The new unified global media model with WPP is being deployed rapidly, with over 1,500 campaigns already launched and AI being used for real-time personalization. — This confirms a major consolidation of a large advertiser's media spend under WPP and signals a fast shift towards AI-driven performance marketing, benefiting both WPP and Meta.
… first of many deployments online and in-store across brands around the world in fiscal 27, as we modernize capabilities in our direct-to-consumer business to drive growth. For Enterprise Business Services, we are on track to have transitioned about 80% of the expected roles by September, while also standardizing select processes and standing up key AI-enabled technologies to facilitate service delivery and productivity. For our new unified global media model, most of our markets have transitioned to WPP, already lighting up over 1500 campaigns and harnessing AI for real-time personalization for many of our performance campaigns. And we expanded our collaboration with Meta, leveraging their AI-powered tool built for advertising, conversational commerce, and adjunct messaging across our brand portfolio to reflect the new consumer behavior of where they are interacting with brands. Now, let me close where I began. I am proud of our Fiscal 26 result. In Beauty Reimagined, we have a winning playbook, and I am confident we will deliver another strong year in fiscal 27. We have the right brands, the right team, a clear momentum, onward and upward. I will now turn the call over to Akhil.
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