Beauty products company Estée Lauder (NYSE: EL) reported calendar Q3 2026 (fiscal Q1 2027) results topping the market’s revenue expectations, with revenue up 6.8% year on year to $3.72 billion. Its non-GAAP profit of $0.72 per share was 41.9% above analysts’ consensus estimates.
For more on Estée Lauder, read our free full research report.
Estée Lauder (EL) Q3 CY2026 highlights:
- Revenue $3.72 billion vs S&P analysts’ consensus estimates of $3.65 billion (6.8% year-on-year growth, 1.8% beat)
- Adjusted EPS $0.72 vs S&P analysts’ consensus estimates of $0.51 (41.9% beat)
- Adjusted EPS guidance $3.33 at the midpoint for the full year, roughly in line with what analysts were expecting
- Operating margin 11%, up from 4.9% in the same quarter last year
- Free cash flow -$235 million compared to -$436 million in the same quarter last year
- Organic revenue rose 6% year on year (beat)
- Market capitalization $39.52 billion
“Our first quarter of fiscal 2027 marks another powerful step forward for The Estée Lauder Companies. Growth is accelerating, profitability is strengthening significantly, and the impact of Beauty Reimagined is becoming increasingly evident across our business. We are bringing more breakthrough innovation to consumers, amplifying the desirability of our brands with bold, high impact campaigns, and building a faster, more agile organization that is converting momentum into stronger financial performance,” said Stéphane de La Faverie, President and CEO.
Revenue growth
A company’s long-term revenue performance can indicate its overall quality. Even a poor business can perform well for one or two quarters, but a high-quality one grows for years.
With $15.3 billion in revenue over the past 12 months, Estée Lauder is one of the larger consumer staples companies and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because there are only so many big store chains to sell into, making it harder to find incremental growth. To accelerate revenue growth, Estée Lauder likely needs to optimize its pricing or focus on new products and international expansion.
Estée Lauder struggled to increase demand, as its $15.3 billion in revenue for the trailing 12 months was close to its revenue three years ago. This shows demand was soft.
This quarter, Estée Lauder reported year-on-year revenue growth of 6.8%, and its $3.72 billion in revenue exceeded Wall Street’s consensus estimates by 1.8%.
Looking ahead, sell-side analysts expect revenue to grow 3.8% over the next 12 months, according to S&P. Although this projection suggests its newer products will fuel better top-line performance, it is still below average for the sector.
Organic revenue growth
When analyzing revenue growth, the key measure is organic revenue growth. This metric captures a business’s performance excluding one-time events such as mergers, acquisitions and divestitures as well as foreign currency fluctuations.
The demand for Estée Lauder’s products has barely risen over the last eight quarters. On average, the company’s organic revenue has been flat. 
In the latest quarter, Estée Lauder’s organic revenue rose by 6% year on year. This growth marked a turnaround from its historical levels, showing the business is regaining momentum.
Key takeaways from Estée Lauder’s Q3 results
Estée Lauder’s EPS and organic revenue both topped Wall Street’s consensus estimates, making for a decent quarter with some key metrics above expectations. Shares remained flat at $110.53 immediately after the results.
Estée Lauder may have had a good quarter, but an investment decision calls for a broader view. That means considering valuation, business quality and the latest earnings. For more on these factors, read our full research report here (it’s free).
