Estée Lauder Raises Fiscal 2027 Outlook After First Quarter Earnings Beat

Estée Lauder raised its full year fiscal 2027 outlook on Monday after first quarter sales and earnings beat estimates.

The Estée Lauder Companies reported results on November 2, 2026 for the quarter ended September 30, 2026. Net sales rose 7 percent to $3,715 million from $3,481 million a year earlier, and organic net sales rose 6 percent. Adjusted diluted earnings per share rose to $0.72 from $0.32 a year earlier, and reported diluted earnings per share rose to $0.64 from $0.13.

The adjusted result beat the Zacks Consensus Estimate of $0.52, an earnings surprise of 38.46 percent. Revenue of $3.72 billion beat the consensus estimate by 1.86 percent.

Fragrance leads the categories

Skin Care remained the largest category, with reported net sales of $1,651 million, up 5 percent. Makeup net sales were $1,048 million, up 2 percent. Fragrance net sales were $861 million, up 19 percent, while Hair Care net sales were $128 million, down 1 percent, and Other net sales were $28 million.

Fragrance organic net sales rose 20 percent, led by Le Labo, TOM FORD, Jo Malone London and KILIAN PARIS. Skin Care organic net sales rose 4 percent, driven by La Mer and The Ordinary.

China grows fastest among regions

By geographic region, reported net sales in The Americas were $1,227 million, up 5 percent. EUKEM net sales were $923 million, up 2 percent. Asia/Pacific net sales were $952 million, up 9 percent, and Mainland China net sales were $614 million, up 15 percent.

Reuters reported that the company raised its annual sales and profit forecasts on Monday, banking on resilient demand for its premium skincare and fragrance brands ahead of the holiday season. Reuters said affluent and younger consumers have continued to spend on skincare and fragrance despite economic uncertainty, strengthening sales for the Clinique and Tom Ford owner.

Margins, cash and the dividend

Gross margin expanded to 75.7 percent from 73.4 percent a year earlier. Operating income rose to $408 million from $169 million, and adjusted operating income rose to $449 million from $255 million.

Cash and cash equivalents rose to $3.20 billion from $2.22 billion a year earlier, and capital expenditures fell to $69 million from $96 million. The company declared a quarterly dividend of $0.35 per share on its Class A and Class B common stock, payable December 15, 2026 to stockholders of record at the close of business on November 30, 2026.

A higher outlook for fiscal 2027

The company now expects organic net sales growth of 4.0 to 5.5 percent for fiscal 2027, up from a previous range of 3 to 5 percent. It raised its adjusted operating margin outlook to 12.9 to 13.7 percent, from 12.7 to 13.5 percent, and its adjusted diluted earnings per share outlook to $3.20 to $3.45, from $3.10 to $3.35.

"We have moved beyond restoring growth. We are building diverse drivers for sustained profitable growth," said Stéphane de La Faverie, President and CEO. "We are raising our fiscal 2027 outlook, reflecting both our strong start and our conviction in the future we are creating."

Reuters said the Beauty Reimagined strategy under de La Faverie focuses on faster innovation, new channels and markets, AI based consumer insights and cost savings including trimming roles. The company held its fiscal 2027 first quarter conference call at 8:30 a.m. Eastern Time on Monday, November 2, 2026.