Estée Lauder (NYSE:EL) shares moved sharply higher after the beauty group issued a fiscal 2027 profit forecast that came in above Wall Street expectations, supported by resilient demand for premium fragrances and improving performance across important markets.
The company also delivered better-than-expected fourth-quarter results. Earnings per share reached $0.39, exceeding the analyst consensus of $0.32 by $0.07, while revenue of $3.63 billion surpassed expectations of $3.55 billion. Organic net sales increased 5% during the quarter.
Fiscal 2027 Earnings Guidance Points to Further Improvement
For fiscal 2027, Estée Lauder expects adjusted earnings per share of between $3.10 and $3.35. The midpoint of that range stands above the average analyst estimate of $3.18 compiled by LSEG.
The stronger outlook provides another indication that the company’s turnaround efforts are gaining traction as management works to strengthen profitability and broaden growth across products and geographic markets.
Estée Lauder also raised its adjusted operating margin outlook to between 12.7% and 13.5%, compared with the preliminary range of 12.5% to 13.0% provided in May.
The upgraded forecast reflects the company’s stronger fiscal 2026 performance, continued benefits from controlling expenses that are not directly consumer-facing and expectations for modest gross margin improvement.
North America Among Key Areas for Growth
Management plans to build on the progress achieved during the latest fiscal year by further diversifying growth across categories and regions, with North America identified as an important area of focus.
“We are raising our outlook for an even stronger adjusted operating margin, as we double down on our strengths to further diversify growth across product categories and geographies, including accelerating growth in North America,” said CEO Stéphane de La Faverie.
Continued demand for premium fragrances is also supporting the outlook as Estée Lauder seeks to strengthen its position across the global prestige beauty market.
Estée Lauder Declares Quarterly Dividend
Alongside its earnings announcement, Estée Lauder declared a quarterly dividend of $0.35 per share for holders of its Class A and Class B common stock.
The dividend is scheduled to be paid on September 15, 2026, to shareholders of record as of August 31, 2026.
The combination of fourth-quarter earnings and revenue beats, stronger margin expectations and fiscal 2027 profit guidance above consensus helped fuel the positive reaction in Estée Lauder shares.