Estée Lauder Exceeds Q4 Earnings Expectations with Strong Fiscal 2027 Outlook
Estée Lauder reported fiscal 2026 results that exceeded expectations, with fourth-quarter revenue reaching $3.63 billion—above the anticipated $3.54 billion—and full-year net sales rising 5% to $15.0 billion. The company also raised its adjusted operating margin outlook for fiscal 2027 and provided a profit forecast above analyst estimates. Guidance calls for adjusted earnings per share between $3.10 and $3.35, with the midpoint at around $3.23 versus an expected $3.18. Fragrance was the standout category, growing 10% organically in fiscal 2026 due to strong performance from luxury brands like Le Labo, TOM FORD, and KILIAN PARIS. Skin care also saw a 4% increase driven by La Mer and The Ordinary, while makeup sales remained flat overall. Estée Lauder's stock rose nearly 8% in premarket trading following the results. The company attributed part of its Q4 performance to $38 million in tariff refunds that offset a larger gross charge from incremental tariffs under U.S. trade policies. It also completed restructuring efforts, resulting in expected benefits of $1.2 billion and job reductions at the high end of prior projections.
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