Estée Lauder reported fiscal 2026 results on Wednesday that topped expectations and issued an annual profit outlook above analyst estimates, sending its stock up nearly 8% in premarket trading. Guidance for fiscal 2027 calls for adjusted earnings per share between $3.10 and $3.35, a range whose midpoint of roughly $3.23 comes in above the $3.18 analysts had projected, according to . Revenue for the fourth quarter reached $3.63 billion, topping the $3.54 billion Wall Street had anticipated, according to .
On an organic basis, net sales grew 5% in the quarter, the company said, marking the fourth consecutive quarter of growth. For the full fiscal year ended June 30, 2026, net sales rose 5% to $15.0 billion. Adjusted diluted earnings per share came in at $2.51, compared with $1.51 in the prior year.
Full-year adjusted operating margin expanded 320 basis points to 11.2%. Fragrance was the standout product category, with net sales rising 10% organically for the full year, led by luxury brands Le Labo, TOM FORD, and KILIAN PARIS. Le Labo's Classic Collection and TOM FORD's Private Blend and Signature lines drove the gains, the company said.
Fragrance net sales in the fourth quarter also grew 10%. Skin care net sales increased 4% organically for the full year, driven by La Mer, The Ordinary, and Estée Lauder. Makeup net sales were roughly flat for the year, with growth from M·A·C and TOM FORD offset by declines at Bobbi Brown and Too Faced.
Mainland China net sales grew 9% organically for the full year, with the company reporting value share gains driven by fragrance, skin care, and makeup. All four geographic regions posted net sales growth for both the quarter and the full year. The company disclosed that tariff refunds generated a $38 million improvement to cost of sales in the fourth quarter, which helped cushion a $102 million full-year gross charge tied to incremental tariffs under the International Emergency Economic Powers Act.
For fiscal 2027, the company affirmed organic net sales growth guidance of 3% to 5% and raised its adjusted operating margin outlook to a range of 12.7% to 13.5%, up from a preliminary outlook of 12.5% to 13.0% issued in May 2026. President and CEO Stéphane de La Faverie said in a statement that the company delivered fiscal 2026 results "ahead of the expectations we had to start the year" and ended with organic sales growth accelerating to 5% in the fourth quarter. The company concluded approvals for the restructuring component of its Profit Recovery and Growth Plan as of June 30, 2026, with total expected gross benefits of $1.2 billion and a net reduction of approximately 10,000 positions, both at the high end of previously communicated ranges.
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