Estee Lauder Companies Financials
This page shows Estee Lauder Companies (EL) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 17 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Revenue shrinkage turned a still-high gross margin model into an overhead absorption problem, not a product-economics collapse.
Revenue fell from$17.7B in FY2022 to$14.3B in FY2025, but SG&A barely moved in the same direction. Because that fixed-cost base sat on less volume, gross margin recovered to74.0% in FY2025 while operating margin still fell to-5.5% , showing the strain is below the gross-profit line rather than in the underlying product economics.
FY2025's net loss of
Leverage is doing more of the financing work now: debt to equity rose to 1.9x in FY2025 from 0.9x in FY2021, after several years of weaker profits and a smaller equity base. With equity down to
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Estee Lauder Companies's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Estee Lauder Companies has an operating margin of -5.5%, meaning the company retains $-5 of operating profit per $100 of revenue. This results in a moderate score of 37/100, indicating healthy but not exceptional operating efficiency. This is down from 6.2% the prior year.
Estee Lauder Companies's revenue declined 8.2% year-over-year, from $15.6B to $14.3B. This contraction results in a growth score of 18/100.
Estee Lauder Companies has elevated debt relative to equity (D/E of 1.89), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 1/100, reflecting increased financial risk.
Estee Lauder Companies's current ratio of 1.30 indicates adequate short-term liquidity, earning a score of 33/100. The company can meet its near-term obligations, though with limited headroom.
Estee Lauder Companies has a free cash flow margin of 4.7%, earning a moderate score of 52/100. The company generates positive cash flow after capital investments, but with room for improvement.
Estee Lauder Companies's ROE of -29.3% shows moderate profitability relative to equity, earning a score of 35/100. This is down from 7.7% the prior year.
Estee Lauder Companies scores 2.60, placing it in the grey zone between 1.81 and 2.99. This signals moderate financial risk that warrants monitoring.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Estee Lauder Companies passes 4 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 2 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), both operating efficiency signals pass.
For every $1 of reported earnings, Estee Lauder Companies generates $-1.12 in operating cash flow ($1.3B OCF vs -$1.1B net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
Estee Lauder Companies earns $-2.2 in operating income for every $1 of interest expense (-$785.0M vs $357.0M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
Key Financial Metrics
Earnings & Revenue
Estee Lauder Companies generated $14.3B in revenue in fiscal year 2025. This represents a decrease of 8.2% from the prior year.
Estee Lauder Companies's EBITDA was $44.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 97.5% from the prior year.
Estee Lauder Companies reported -$1.1B in net income in fiscal year 2025. This represents a decrease of 377.0% from the prior year.
Estee Lauder Companies earned $-3.15 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 391.7% from the prior year.
Cash & Balance Sheet
Estee Lauder Companies generated $670.0M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 53.5% from the prior year.
Estee Lauder Companies held $2.9B in cash against $7.3B in long-term debt as of fiscal year 2025.
Estee Lauder Companies paid $1.71 per share in dividends in fiscal year 2025. This represents a decrease of 35.2% from the prior year.
Margins & Returns
Estee Lauder Companies's gross margin was 74.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 2.3 percentage points from the prior year.
Estee Lauder Companies's operating margin was -5.5% in fiscal year 2025, reflecting core business profitability. This is down 11.7 percentage points from the prior year.
Estee Lauder Companies's net profit margin was -7.9% in fiscal year 2025, showing the share of revenue converted to profit. This is down 10.5 percentage points from the prior year.
Estee Lauder Companies's ROE was -29.3% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 37.0 percentage points from the prior year.
Capital Allocation
Estee Lauder Companies spent $35.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 0.0% from the prior year.
Estee Lauder Companies invested $602.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 34.5% from the prior year.
EL Income Statement
| Metric | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $3.7B-12.2% | $4.2B+21.5% | $3.5B+2.1% | $3.4B-3.9% | $3.5B-11.3% | $4.0B+19.1% | $3.4B-13.2% | $3.9B |
| Cost of Revenue | $876.0M-11.9% | $994.0M+7.2% | $927.0M-2.9% | $955.0M+7.4% | $889.0M-7.1% | $957.0M+3.1% | $928.0M-15.1% | $1.1B |
| Gross Profit | $2.8B-12.3% | $3.2B+26.7% | $2.6B+4.0% | $2.5B-7.7% | $2.7B-12.7% | $3.0B+25.2% | $2.4B-12.4% | $2.8B |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | $2.3B-13.2% | $2.6B+14.4% | $2.3B-0.8% | $2.3B+2.5% | $2.3B-12.6% | $2.6B+12.5% | $2.3B-6.0% | $2.4B |
| Operating Income | $249.0M-37.9% | $401.0M+137.3% | $169.0M+143.3% | -$390.0M-227.5% | $306.0M+152.8% | -$580.0M-379.3% | -$121.0M+48.1% | -$233.0M |
| Interest Expense | $82.0M-3.5% | $85.0M-1.2% | $86.0M-2.3% | $88.0M+1.1% | $87.0M-3.3% | $90.0M-2.2% | $92.0M+1.1% | $91.0M |
| Income Tax | $90.0M-47.4% | $171.0M+175.8% | $62.0M-34.7% | $95.0M+15.9% | $82.0M+236.7% | -$60.0M-150.0% | -$24.0M-442.9% | $7.0M |
| Net Income | $89.0M-45.1% | $162.0M+244.7% | $47.0M+108.6% | -$546.0M-443.4% | $159.0M+126.9% | -$590.0M-278.2% | -$156.0M+45.5% | -$286.0M |
| EPS (Diluted) | $0.24-45.5% | $0.44+238.5% | $0.13 | N/A | $0.44+126.8% | $-1.64-281.4% | $-0.43 | N/A |
EL Balance Sheet
| Metric | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $19.7B+0.2% | $19.6B+1.6% | $19.3B-2.8% | $19.9B0.0% | $19.9B+0.6% | $19.8B-7.3% | $21.3B-1.7% | $21.7B |
| Current Assets | $7.5B+4.7% | $7.2B+6.6% | $6.7B-5.0% | $7.1B+0.7% | $7.0B+1.8% | $6.9B-4.4% | $7.2B-8.9% | $7.9B |
| Cash & Equivalents | $3.1B+1.4% | $3.1B+38.9% | $2.2B-24.0% | $2.9B+11.0% | $2.6B+1.7% | $2.6B+10.0% | $2.4B-30.8% | $3.4B |
| Inventory | $1.9B+1.2% | $1.9B-8.1% | $2.1B-0.6% | $2.1B+5.9% | $2.0B-2.1% | $2.0B-11.2% | $2.3B+3.7% | $2.2B |
| Accounts Receivable | $1.7B+5.4% | $1.7B-12.0% | $1.9B+23.1% | $1.5B-14.6% | $1.8B+11.2% | $1.6B-18.5% | $2.0B+14.5% | $1.7B |
| Goodwill | $2.1B-1.0% | $2.1B+0.8% | $2.1B-0.7% | $2.1B+2.6% | $2.1B+0.3% | $2.1B-4.1% | $2.2B+0.9% | $2.1B |
| Total Liabilities | $15.7B+0.4% | $15.6B+1.1% | $15.4B-3.7% | $16.0B+3.1% | $15.5B-0.3% | $15.6B-4.0% | $16.2B-0.8% | $16.4B |
| Current Liabilities | $5.9B+12.1% | $5.3B+3.7% | $5.1B-6.5% | $5.4B+9.5% | $5.0B-1.3% | $5.0B-8.3% | $5.5B-3.8% | $5.7B |
| Long-Term Debt | $6.8B-7.0% | $7.3B0.0% | $7.3B+0.1% | $7.3B+0.2% | $7.3B+0.3% | $7.3B-0.5% | $7.3B+0.6% | $7.3B |
| Total Equity | $4.0B-0.9% | $4.0B+3.6% | $3.9B+0.6% | $3.9B-11.0% | $4.3B+4.2% | $4.2B-18.0% | $5.1B-4.3% | $5.3B |
| Retained Earnings | $11.6B-0.3% | $11.6B+0.3% | $11.6B-0.7% | $11.7B-5.4% | $12.3B+0.3% | $12.3B-5.5% | $13.0B-2.9% | $13.4B |
EL Cash Flow Statement
| Metric | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $412.0M-63.4% | $1.1B+430.9% | -$340.0M-156.6% | $601.0M+111.6% | $284.0M-73.1% | $1.1B+257.8% | -$670.0M-175.4% | $889.0M |
| Capital Expenditures | $102.0M-5.6% | $108.0M+12.5% | $96.0M-53.6% | $207.0M+69.7% | $122.0M-7.6% | $132.0M-6.4% | $141.0M-35.0% | $217.0M |
| Free Cash Flow | $310.0M-69.5% | $1.0B+333.3% | -$436.0M-210.7% | $394.0M+143.2% | $162.0M-82.5% | $925.0M+214.1% | -$811.0M-220.7% | $672.0M |
| Investing Cash Flow | -$96.0M-4.3% | -$92.0M+20.7% | -$116.0M+46.0% | -$215.0M-88.6% | -$114.0M+14.9% | -$134.0M+16.3% | -$160.0M+28.9% | -$225.0M |
| Financing Cash Flow | -$263.0M-46.1% | -$180.0M+24.7% | -$239.0M-86.7% | -$128.0M+7.2% | -$138.0M+78.8% | -$652.0M-188.5% | -$226.0M+76.8% | -$976.0M |
| Dividends Paid | $126.0M-1.6% | $128.0M+0.8% | $127.0M+0.8% | $126.0M0.0% | $126.0M0.0% | $126.0M-47.5% | $240.0M+1.3% | $237.0M |
| Share Buybacks | $3.0M-94.8% | $58.0M+544.4% | $9.0M | $0 | $0-100.0% | $25.0M+150.0% | $10.0M+900.0% | $1.0M |
EL Financial Ratios
| Metric | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 76.4%-0.1pp | 76.5%+3.1pp | 73.4%+1.4pp | 72.0%-3.0pp | 75.0%-1.1pp | 76.1%+3.7pp | 72.4%+0.6pp | 71.8% |
| Operating Margin | 6.7%-2.8pp | 9.5%+4.6pp | 4.9%+16.3pp | -11.4%-20.1pp | 8.6%+23.1pp | -14.5%-10.9pp | -3.6%+2.4pp | -6.0% |
| Net Margin | 2.4%-1.4pp | 3.8%+2.5pp | 1.4%+17.4pp | -16.0%-20.5pp | 4.5%+19.2pp | -14.7%-10.1pp | -4.6%+2.7pp | -7.4% |
| Return on Equity | 2.2%-1.8pp | 4.0%+2.8pp | 1.2%+15.3pp | -14.1%-17.8pp | 3.7%+17.8pp | -14.1%-11.1pp | -3.1%+2.3pp | -5.4% |
| Return on Assets | 0.4%-0.4pp | 0.8%+0.6pp | 0.2%+3.0pp | -2.7%-3.5pp | 0.8%+3.8pp | -3.0%-2.3pp | -0.7%+0.6pp | -1.3% |
| Current Ratio | 1.27-0.1 | 1.36+0.0 | 1.32+0.0 | 1.30-0.1 | 1.41+0.0 | 1.37+0.1 | 1.32-0.1 | 1.39 |
| Debt-to-Equity | 1.71-0.1 | 1.82-0.1 | 1.88-0.0 | 1.89+0.2 | 1.68-0.1 | 1.75+0.3 | 1.44+0.1 | 1.37 |
| FCF Margin | 8.3%-15.7pp | 24.1%+36.6pp | -12.5%-24.1pp | 11.6%+7.0pp | 4.6%-18.5pp | 23.1%+47.2pp | -24.1%-41.5pp | 17.4% |
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Frequently Asked Questions
What is Estee Lauder Companies's annual revenue?
Estee Lauder Companies (EL) reported $14.3B in total revenue for fiscal year 2025. This represents a -8.2% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Estee Lauder Companies's revenue growing?
Estee Lauder Companies (EL) revenue declined by 8.2% year-over-year, from $15.6B to $14.3B in fiscal year 2025.
Is Estee Lauder Companies profitable?
No, Estee Lauder Companies (EL) reported a net income of -$1.1B in fiscal year 2025, with a net profit margin of -7.9%.
What is Estee Lauder Companies's EBITDA?
Estee Lauder Companies (EL) had EBITDA of $44.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Estee Lauder Companies have?
As of fiscal year 2025, Estee Lauder Companies (EL) had $2.9B in cash and equivalents against $7.3B in long-term debt.
What is Estee Lauder Companies's gross margin?
Estee Lauder Companies (EL) had a gross margin of 74.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Estee Lauder Companies's operating margin?
Estee Lauder Companies (EL) had an operating margin of -5.5% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Estee Lauder Companies's net profit margin?
Estee Lauder Companies (EL) had a net profit margin of -7.9% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Estee Lauder Companies pay dividends?
Yes, Estee Lauder Companies (EL) paid $1.71 per share in dividends during fiscal year 2025.
What is Estee Lauder Companies's return on equity (ROE)?
Estee Lauder Companies (EL) has a return on equity of -29.3% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Estee Lauder Companies's free cash flow?
Estee Lauder Companies (EL) generated $670.0M in free cash flow during fiscal year 2025. This represents a -53.5% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Estee Lauder Companies's operating cash flow?
Estee Lauder Companies (EL) generated $1.3B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Estee Lauder Companies's total assets?
Estee Lauder Companies (EL) had $19.9B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Estee Lauder Companies's capital expenditures?
Estee Lauder Companies (EL) invested $602.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
What is Estee Lauder Companies's current ratio?
Estee Lauder Companies (EL) had a current ratio of 1.30 as of fiscal year 2025, which is considered adequate.
What is Estee Lauder Companies's debt-to-equity ratio?
Estee Lauder Companies (EL) had a debt-to-equity ratio of 1.89 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Estee Lauder Companies's return on assets (ROA)?
Estee Lauder Companies (EL) had a return on assets of -5.7% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Estee Lauder Companies's Altman Z-Score?
Estee Lauder Companies (EL) has an Altman Z-Score of 2.60, placing it in the Grey Zone (moderate risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Estee Lauder Companies's Piotroski F-Score?
Estee Lauder Companies (EL) has a Piotroski F-Score of 4 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Estee Lauder Companies's earnings high quality?
Estee Lauder Companies (EL) has an earnings quality ratio of -1.12x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Estee Lauder Companies cover its interest payments?
Estee Lauder Companies (EL) has an interest coverage ratio of -2.2x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Estee Lauder Companies?
Estee Lauder Companies (EL) scores 29 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.