Fiscal year ends JunLast earnings: May 1, 2026Est. next earnings: Aug 3, 2026
Latest Score
9.0/ 10
±0.0vs prior
4-Period Change
+6.0
vs Q3 '25
Challenge RatePercentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions.
6%
All quarters
9.0out of 10Positive
Sentiment · FY2026 Q3
Q1 '25Q3 '26
Top Analysts & Firms
Most Active Analysts
Analyst
Firm
Questions
ChallengePercentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions.
Base6Base 6GAAP revenue YoY +4.56% → base 6. The base score is anchored to the GAAP revenue YoY band before transcript, EPS, and guidance adjustments.+Transcript0Transcript 0GAAP revenue is clean, no distortion.+EPS+1EPS +1GAAP EPS YoY -45.45%. GAAP EPS spread = -45.45 - 4.56 = -49.01 percentage points (outside -5 percentage points, suggests -1). operating income spread = 17.00 - 4.56 = +12.44 percentage points (outside +5 percentage points, suggests +1). GAAP and OI disagree on direction — OI wins. Management adjusted EPS +40% ($0.91 vs $0.65), adjusted EPS spread = +35.44 percentage points also confirms +1. GAAP EPS distorted by $196M incremental restructuring charges in Q3 ($904M→$1.1B cumulative).+Guidance+2Guidance +2Raised FY2026 EPS from $2.05-$2.25 (mid $2.15) to $2.35-$2.45 (mid $2.40). Change = ($2.40 - $2.15) / $2.15 * 100 = +11.63%. Raise ≥3%. Also introduced preliminary FY2027 view (organic 3-5%, OM 12.5-13%) but scoring on same-year raise which is the larger action.=Final9
How this score was built
Base6Base 6GAAP revenue YoY +4.56% → base 6. The base score is anchored to the GAAP revenue YoY band before transcript, EPS, and guidance adjustments.+Transcript0Transcript 0GAAP revenue is clean, no distortion.+
Estee Lauder delivered 2% organic sales growth with EPS growing 40% to $0.91 in fiscal Q3, as operating margin expanded 360 basis points to 15%. China posted its fifth consecutive quarter of share gains, MAC launched as the #1 makeup brand at Sephora U.S., and fragrance delivered double-digit growth across all regions. Management raised FY2026 EPS guidance again to $2.35-$2.45 (an 11.6% midpoint increase) and introduced a preliminary fiscal 2027 view of 3-5% organic growth with 12.5-13% operating margin.
Key Themes7
positive📊 company
Fiscal '26 Outlook Raised Again With Fiscal '27 Preliminary View
Raised fiscal '26 outlook: organic approximately 3%, OM 10.7% to 11%, EPS $2.35 to $2.45 (56% to 62% growth). Introduced preliminary fiscal '27 view: organic 3% to 5%, OM 12.5% to 13%. Would represent 500 basis points margin expansion from Beauty Reimagined starting point.
Guidance Reliability
positive📊 company
Operating Margin Expanded 360 Basis Points To 15%
Q3 operating margin expanded 360 basis points to 15%. Gross margin expanded 140 basis points to 76.4% driven by PRGP efficiencies. Nonconsumer-facing expenses reduced 4%. Consumer-facing investment increased 9%.
EPS +1GAAP EPS YoY -45.45%. GAAP EPS spread = -45.45 - 4.56 = -49.01 percentage points (outside -5 percentage points, suggests -1). operating income spread = 17.00 - 4.56 = +12.44 percentage points (outside +5 percentage points, suggests +1). GAAP and OI disagree on direction — OI wins. Management adjusted EPS +40% ($0.91 vs $0.65), adjusted EPS spread = +35.44 percentage points also confirms +1. GAAP EPS distorted by $196M incremental restructuring charges in Q3 ($904M→$1.1B cumulative).
+
Guidance+2Guidance +2Raised FY2026 EPS from $2.05-$2.25 (mid $2.15) to $2.35-$2.45 (mid $2.40). Change = ($2.40 - $2.15) / $2.15 * 100 = +11.63%. Raise ≥3%. Also introduced preliminary FY2027 view (organic 3-5%, OM 12.5-13%) but scoring on same-year raise which is the larger action.
=
Final9
China Fifth Consecutive Quarter Of Share Gains
High single-digit retail sales growth in Mainland China outperforming prestige beauty for third consecutive fiscal quarter. Six brands in double-digit growth. Hainan retail sales rose strong double digit with 10 brands growing double digit, over 30% retail growth.
Competitive DynamicsDemand
positive📊 company
Fragrance Double-Digit Growth Across All Regions
Fragrance delivered double-digit organic sales growth driven by luxury brands across all geographic regions. Le Labo with high single-digit like-for-like growth and strong double-digit organic growth. KILIAN PARIS fastest-growing brand in the company. BALMAIN Beauty debut drove exceptional response.
Innovation & R&DDemand
positive📊 company
MAC Sephora U.S. Launch #1 In Makeup
MAC was the #1 lead brand in makeup across Sephora stores where it launched in March. MAC gained 10 points of market share in the quarter. Five brands gained value share in U.S. makeup. Volume share gained in all four prestige beauty categories.
Competitive DynamicsProduct Launch
negative🌍 macro
Middle East Conflict Impacting Q4 Outlook
Middle East business disruption expected to impact Q4 by approximately 2 percentage points of sales growth and $0.06 EPS. Full year impact less than 1% on sales and approximately $0.07 dilutive to EPS. Q3 impact partially mitigated by pre-shipped holiday inventory.
DemandGeographic Expansion
mixed📊 company
PRGP Restructuring Expanded With Channel Exits
Expanded restructuring program to $1.5 billion to $1.7 billion in total charges. Approved initiatives to achieve high end of target gross savings. 70% of expansion in beauty adviser positions from exiting unproductive department store and freestanding store doors. Increased target gross savings range.