Estée Lauder Earnings Show Sales Up 7% as Fragrance Sales Jump 19%
Estée Lauder earnings for the quarter to September 30, 2026 showed sales up 7% and fragrance sales up 19%, and adjusted earnings per share more than doubled. The adjusted operating margin of 12.1% was the best for this quarter in four years, but still short of the 17.0% of 2022. The company also raised its forecast for the year.
The short answer. The maker of Clinique, M·A·C, La Mer and Le Labo sold more in every region, led by perfume, and its operating profit grew far faster than sales. Its recovery is real but not finished. Its adjusted operating margin, operating profit as a share of sales, shows it. For this quarter that margin has climbed every year from a low of 3.1% in 2023, and it is still below 2022. The plan behind it cuts about 10,000 jobs, while the company spends more on advertising and stores to win shoppers.
Estée Lauder first quarter of fiscal 2027, three months to September 30, 2026
On this page
- Estée Lauder earnings for the first quarter of fiscal 2027
- Which Estée Lauder brands and regions grew
- Estée Lauder profit margin: the best first quarter since 2022
- Estée Lauder's Profit Recovery and Growth Plan and its margin goal
- Estée Lauder raises its fiscal 2027 outlook
- Estée Lauder stock after the earnings report
- Estée Lauder dividend, cash and debt
- Frequently asked questions
Every company reporting the same week, with its date and time, is in StockTitan's Earnings Calendar for the Week of November 2, 2026.
Estée Lauder earnings for the first quarter of fiscal 2027
Estée Lauder sold more and earned much more than a year earlier. Sales grew 7%, and adjusted earnings per share more than doubled.
Estée Lauder's fiscal year ends on June 30. So the first quarter of fiscal 2027 is the three months to September 30, 2026.
Net sales rose 7% to $3,715 million, from $3,481 million a year earlier. Organic net sales rose 6%. That measure leaves out currency moves, deals and brand closures, so it shows the business itself.
Profit grew much faster than sales. Diluted earnings per share rose to $0.64 from $0.13 on the standard GAAP basis. On the adjusted basis, which leaves out restructuring charges and some other items, they rose to $0.72 from $0.32.
"We have moved beyond restoring growth," said Stéphane de La Faverie, the president and chief executive. He said the company is now building "diverse drivers for sustained profitable growth." In plain words, sales are growing again, and he wants that growth to come from more brands and regions than before.
| Measure | Q1 fiscal 2027 | Q1 fiscal 2026 | Change |
|---|---|---|---|
| Net sales | $3,715 million | $3,481 million | +7% |
| Organic net sales (non-GAAP) | $3,696 million | $3,480 million | +6% |
| Gross profit | $2,813 million | $2,554 million | +10% |
| Operating income | $408 million | $169 million | +100% or more |
| Adjusted operating income (non-GAAP) | $449 million | $255 million | +76% |
| Diluted earnings per share | $0.64 | $0.13 | +100% or more |
| Adjusted diluted earnings per share (non-GAAP) | $0.72 | $0.32 | +100% or more |
Source: The Estée Lauder Companies fiscal 2027 first quarter results release, three months ended September 30, 2026 and 2025.
Which Estée Lauder brands and regions grew
Perfume did most of the work, with fragrance sales up 19%, or 20% on an organic basis. Sales also grew in every region of the world.
Fragrance was the standout. The company's luxury brands grew by double digits, led by Le Labo, Tom Ford, Jo Malone London and Kilian Paris. The Estée Lauder brand grew too, thanks to Glimmer, its first gourmand scent, a sweet smell that recalls food. Fragrance operating income rose 93% to $166 million.
Skin care is the biggest business, and it grew 4% on an organic basis, helped by La Mer and The Ordinary. Makeup grew 1%. M·A·C gained, while sales of the Estée Lauder brand's own makeup fell. Hair care was flat, as The Ordinary grew and Aveda fell on supply chain problems.
Two businesses turned a loss into a profit. Makeup and hair care both earned an operating profit, after losses a year earlier.
By region, Asia/Pacific grew most, up 10% on an organic basis. Much of that came from travel retail, the duty-free shops at airports and on the island of Hainan. At the Beijing and Shanghai airports, shops ordered more stock as business settled after a change of duty-free operators. Mainland China grew 9%. The Americas and EUKEM, the region that takes in Europe and the Middle East, each grew 4%.
| Product category | Net sales Q1 fiscal 2027 | Net sales Q1 fiscal 2026 | Organic change | Operating income Q1 fiscal 2027 | Operating income Q1 fiscal 2026 |
|---|---|---|---|---|---|
| Skin Care | $1,651 million | $1,575 million | +4% | $262 million | $187 million |
| Makeup | $1,048 million | $1,030 million | +1% | $3 million | loss of $15 million |
| Fragrance | $861 million | $721 million | +20% | $166 million | $86 million |
| Hair Care | $128 million | $129 million | flat | $5 million | loss of $12 million |
Show the data
| Region | Net sales Q1 fiscal 2027 | Net sales Q1 fiscal 2026 | Organic change | Operating income Q1 fiscal 2027 | Operating income Q1 fiscal 2026 |
|---|---|---|---|---|---|
| The Americas | $1,227 million | $1,174 million | +4% | $114 million | $87 million |
| EUKEM | $923 million | $901 million | +4% | $44 million | $6 million |
| Asia/Pacific | $952 million | $873 million | +10% | $259 million | $150 million |
| Mainland China | $614 million | $532 million | +9% | $32 million | $12 million |
Source: The Estée Lauder Companies fiscal 2027 first quarter results release, three months ended September 30, 2026 and 2025. Operating income by category and region is before restructuring and other charges.
Estée Lauder profit margin: the best first quarter since 2022
The adjusted operating margin rose to 12.1%, its best for this quarter since 2022. It is still below the level it reached that year.
The operating margin is operating profit as a share of sales. Estée Lauder's adjusted version leaves out restructuring charges and some other items. The company uses it to track its recovery.
The margin moves a lot from quarter to quarter. So the fair test is the same quarter in earlier years. In 2022 it was 17.0%, the level before the slump. A year later it fell to 3.1%, as sales to travel retail shops in Asia dropped, according to the fiscal 2024 first quarter release.
Since that low, the margin has risen every year: to 4.3% in 2024, 7.3% in 2025 and 12.1% now, the company's releases show.
Show the data
| Category | Value |
|---|---|
| Sep 2022 | 17.0% |
| Sep 2023 | 3.1% |
| Sep 2024 | 4.3% |
| Sep 2025 | 7.3% |
| Sep 2026 | 12.1% |
The other quarters tell the same story. Each of the last five quarters had a higher adjusted operating margin than the same quarter a year before. In fiscal 2026 the margin reached 14.4% in the quarter to December and 15.0% in the quarter to March, according to the second quarter and third quarter releases.
Show the data
| Item | A year before | The quarter | Change |
|---|---|---|---|
| Quarter to Sep 2025 | 4.3% | 7.3% | +3.0 pts |
| Quarter to Dec 2025 | 11.5% | 14.4% | +2.9 pts |
| Quarter to Mar 2026 | 11.4% | 15.0% | +3.6 pts |
| Quarter to Jun 2026 | 4.0% | 7.3% | +3.3 pts |
| Quarter to Sep 2026 | 7.3% | 12.1% | +4.8 pts |
This quarter, the gross margin, the share of sales left after the cost of making the products, rose to 75.7% from 73.4%.
The release credits savings from the Profit Recovery and Growth Plan, or PRGP, in buying, in spending and in its factories, along with higher sales and price increases. Together they made up for inflation. The release does not say how much of the gain came from each.
On the GAAP basis, the operating margin rose to 11.0% from 4.9%. Part of that jump came from smaller restructuring and other charges, which fell by $45 million from a year earlier.
Not all of the savings went to profit. The company spent 8% more on what it calls consumer-facing investments. Those are mostly advertising, selling and store costs, the money it spends to reach shoppers.
Tax also took a smaller bite. The adjusted effective tax rate, the share of pre-tax profit paid in tax, fell to 31.9% from 40.5%. The company ties that to a better expected mix of earnings for the year. The lower rate is one reason adjusted earnings per share grew faster than adjusted operating income.
Show the data
| Margin or rate | Q1 fiscal 2027 | Q1 fiscal 2026 | Change stated by the company |
|---|---|---|---|
| Gross margin | 75.7% | 73.4% | +230 basis points |
| Adjusted gross margin (non-GAAP) | 75.7% | 73.3% | +240 basis points |
| Operating margin | 11.0% | 4.9% | +610 basis points |
| Adjusted operating margin (non-GAAP) | 12.1% | 7.3% | +480 basis points |
| Effective tax rate | 32.5% | 56.9% | Lower |
| Adjusted effective tax rate (non-GAAP) | 31.9% | 40.5% | Lower |
Source: The Estée Lauder Companies fiscal 2027 first quarter results release, three months ended September 30, 2026 and 2025. A basis point is one hundredth of a percentage point.
Estée Lauder's Profit Recovery and Growth Plan and its margin goal
The plan aims for a solid double-digit adjusted operating margin. For the year to June 2027 the company now expects 12.9% to 13.7%.
Estée Lauder announced the PRGP in November 2023, the fiscal 2025 first quarter release says. It widened the plan in February 2025, according to the fiscal 2025 third quarter release.
In its fiscal 2026 results release of August 19, 2026, it said the plan supports "the recovery toward a solid double-digit adjusted operating margin." The releases do not put an exact number on that goal.
The full year shows how far it has come. The adjusted operating margin rose to 11.2% in fiscal 2026, from 8.0% in fiscal 2025. The new forecast of 12.9% to 13.7% for fiscal 2027 would take it higher again.
The cost cutting is mostly decided. The company finished approving its restructuring steps on June 30, 2026. It expects about 10,000 fewer jobs, and charges of slightly more than $1.7 billion, before tax.
In return it expects yearly gross savings of about $1.2 billion, before tax. The company says that money helps restore the margin, offsets inflation and pays for more spending to reach shoppers. The August release said the company expects most of the full yearly savings to come through in fiscal 2027.
| Fiscal year | Adjusted operating margin (non-GAAP) |
|---|---|
| Fiscal 2025, year to June 30, 2025 | 8.0% |
| Fiscal 2026, year to June 30, 2026 | 11.2% |
| Fiscal 2027 forecast, now | 12.9% to 13.7% |
| Fiscal 2027 forecast, August 19, 2026 | 12.7% to 13.5% |
Source: The Estée Lauder Companies fiscal 2026 results release, August 19, 2026, and the fiscal 2027 first quarter results release, November 2, 2026.
Estée Lauder raises its fiscal 2027 outlook
The company now expects a better year than it did in August. It raised its forecast for adjusted earnings per share to $3.20 to $3.45.
The old range for adjusted earnings per share was $3.10 to $3.35, given on August 19, 2026. The new one covers the year that ends on June 30, 2027.
The company also raised its sales forecast. It now sees organic sales growth of 4.0% to 5.5%, up from 3% to 5%.
It expects stronger growth in the first half of the year than in the second. It gives three reasons: more new products early in the year, more shipments to travel retail shops, and lower travel retail shipments in the first half of fiscal 2026.
The company says it stays cautious because of geopolitical and economic uncertainty. It does not expect the conflict in the Middle East to have a material impact on its fiscal 2027 results. It also expects makeup to return to growth for the full year.
Colgate-Palmolive, the maker of Colgate toothpaste and Palmolive soap, also raised its full year forecast on October 30, 2026. StockTitan's report on Colgate earnings has the details.
| Fiscal 2027 forecast | Now (November 2, 2026) | Before (August 19, 2026) |
|---|---|---|
| Organic net sales growth (non-GAAP) | 4.0% to 5.5% | 3% to 5% |
| Reported net sales growth | 5.0% to 6.5% | 3% to 5% |
| Adjusted operating margin (non-GAAP) | 12.9% to 13.7% | 12.7% to 13.5% |
| Diluted earnings per share (GAAP) | $2.85 to $3.18 | $2.52 to $2.85 |
| Adjusted diluted earnings per share (non-GAAP) | $3.20 to $3.45 | $3.10 to $3.35 |
| Net cash from operating activities | $1.4 billion to $1.5 billion | $1.3 billion to $1.4 billion |
| Adjusted effective tax rate | about 33% to 34% | about 33% to 34% |
| Diluted weighted-average shares | about 368 million | about 368 million |
Source: The Estée Lauder Companies fiscal 2027 first quarter results release, outlook for the twelve months ending June 30, 2027, and the fiscal 2026 results release of August 19, 2026.
Estée Lauder stock after the earnings report
The shares swung up and down in trading before the market opened. At 6:30 a.m. ET they were a little above Friday's closing level.
At 6:30 a.m. ET the shares traded at $112.00 in pre-market trading, against $109.32 at the end of regular trading on October 30, 2026. In the first half hour after the 6:00 a.m. ET release, they swung from a high of $114.41 to a low of $106.00.
Pre-market trading is thin, and the regular session opens at 9:30 a.m. ET.
The Estée Lauder stock page has the latest price, and its financials page has the past quarters in full.
Estée Lauder dividend, cash and debt
The company declared a quarterly dividend of 35 cents a share. It used less cash in the quarter than a year earlier.
The dividend of $0.35 a share is payable on December 15, 2026 to holders of record at the close of business on November 30, 2026. It covers both Class A and Class B common stock. Dividend payments in the quarter came to $126 million. StockTitan's dividend yield calculator turns a payout and a share price into a yearly yield.
Free cash flow is the cash from running the business minus spending on things like stores and equipment. It was still negative, at minus $235 million. That was an improvement from minus $436 million a year earlier. The company puts that down to better operating cash flow and the timing of capital spending.
For the full year, the company expects $1.4 billion to $1.5 billion of cash from operations. It ties the drop from the $1.77 billion of fiscal 2026 to higher restructuring payments and more money tied up in running the business.
Cash and cash equivalents stood at $3.20 billion on September 30, 2026, up from $2.22 billion a year earlier.
Compared with a year earlier, long-term debt fell to $6,748 million, while debt due within a year rose to $503 million.
The release does not mention share buybacks. The basic weighted-average share count, the average number of shares outstanding in the quarter, was 363.3 million, against 361.2 million a year earlier.
| Cash and balance sheet item | Q1 fiscal 2027 | Q1 fiscal 2026 |
|---|---|---|
| Net cash used for operating activities | $166 million | $340 million |
| Capital expenditures | $69 million | $96 million |
| Free cash flow (non-GAAP) | minus $235 million | minus $436 million |
| Dividends paid | $126 million | $127 million |
| Cash and cash equivalents, September 30 | $3,198 million | $2,219 million |
| Current debt, September 30 | $503 million | $3 million |
| Long-term debt, September 30 | $6,748 million | $7,320 million |
Source: The Estée Lauder Companies fiscal 2027 first quarter results release, three months ended September 30, 2026 and 2025, and balance sheets at September 30, 2026 and 2025.
What to watch
- Whether the company puts a number on its "solid double-digit" margin goal: its Capital Markets Experience webcast from Shanghai on November 4, 2026
- The margin in the quarter to December 31, 2026, against 14.4% a year earlier, in the next quarterly results release
Our numbers
The comparisons use the margins the company reports, except the two older margins calculated below. The share prices come from StockTitan's real-time market data.
- 17.0% and 3.1%: the margins for the quarters to September 30, 2022 and 2023. Each is adjusted operating income ($668 million and $108 million) divided by net sales before restructuring returns ($3,935 million and $3,518 million), from the fiscal 2024 first quarter release.
- Best for this quarter since 2022: the adjusted operating margins of the quarters to September 30 from 2022 to 2026 set side by side.
- Each of the last five quarters higher than a year before: the company's stated margins for the quarters to September 2025 through September 2026. Each is set against the same quarter a year earlier.
- Share prices: trades of November 2, 2026 from 6:00 a.m. ET to 6:30 a.m. ET, against the last regular-session trade of October 30, 2026.
Frequently asked questions
When did Estée Lauder report earnings?
Estée Lauder reported its fiscal 2027 first quarter results on the morning of November 2, 2026, ahead of a conference call at 8:30 a.m. ET the same day. The quarter covers the three months to September 30, 2026.
Has Estée Lauder's profit margin recovered?
Partly. The adjusted operating margin was 12.1% in the quarter to September 30, 2026, up from a low of 3.1% in the same quarter of 2023. It was 17.0% in that quarter of 2022.
What is Estée Lauder's guidance for fiscal 2027?
The company now expects organic net sales growth of 4.0% to 5.5%, an adjusted operating margin of 12.9% to 13.7% and adjusted diluted earnings per share of $3.20 to $3.45. All three ranges are higher than the ones it gave on August 19, 2026.
What is the Estée Lauder Profit Recovery and Growth Plan?
It is the company's program, announced in November 2023, to cut costs and restore profit, and it includes a restructuring program. It aims for a solid double-digit adjusted operating margin and about $1.2 billion of yearly gross savings, before tax.
Is Estée Lauder paying a dividend?
Yes. The company declared a quarterly dividend of $0.35 a share on its Class A and Class B common stock. It is payable on December 15, 2026 to holders of record on November 30, 2026.
Sources
- The Estée Lauder Companies Reports Fiscal 2027 First Quarter Results, November 2, 2026
- The Estée Lauder Companies Reports Fiscal 2026 Results, August 19, 2026
- StockTitan: The Estée Lauder Companies Reports Fiscal 2027 First Quarter Results
- StockTitan: The Estée Lauder Companies Reports Fiscal 2024 First Quarter Results
- StockTitan: The Estée Lauder Companies Reports Fiscal 2026 First Quarter Results
- StockTitan: The Estée Lauder Companies Reports Fiscal 2026 Second Quarter Results
- StockTitan: The Estée Lauder Companies Reports Fiscal 2026 Third Quarter Results
- StockTitan: The Estée Lauder Companies Reports Fiscal 2025 First Quarter Results
- StockTitan: The Estée Lauder Companies Reports Fiscal 2025 Third Quarter Results
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