Estée Lauder Reports Strong Fiscal 2026 Earnings Amid Turnaround Progress
Estée Lauder Companies (NYSE:EL) delivered strong fiscal 2026 results that validated its ongoing turnaround strategy. Organic net sales rose by 3%, adjusted operating margin expanded to 11.2%—a gain of 320 basis points—and adjusted diluted EPS surged 66% year-over-year, reaching $2.51 per share. The growth was broad-based across categories and regions. Fragrance led with a 10% increase in organic sales driven by Le Labo and TOM FORD, while Skin Care grew steadily at 4%. Jo Malone London and TOM FORD joined the billion-dollar brand club this year, bringing Estée Lauder’s total to six such brands. The company also saw strong performance from its digital channels with online sales reaching a record 34% of reported revenue. Despite these gains, challenges remain. Hair Care declined by 1%, and Makeup growth remained flat despite improvement in the category. Additionally, geopolitical tensions impacted results in Europe, the Middle East, and Africa. The company’s margin expansion was also supported significantly by cost-cutting measures rather than organic sales acceleration.
Tickers: $EL
Topics: beauty financial_performance retail