Investigation Into Coty's $126.9 Million Quarterly Loss and Collapse of Earnings Expectations

Rhea-AI Summary

Coty (NYSE: COTY) faces scrutiny after a reported $126.9 million net loss in Q2 FY2026 and non-GAAP EPS of $0.14, missing the $0.18 consensus by $0.04. Shares fell ~15% in after-hours trading to a 52-week low of $2.66.

The company reported like‑for‑like revenue down ~3%, withdrew full‑year FY2026 guidance, and unveiled a new "Coty. Curated." turnaround strategy under interim CEO Markus Strobel. Levi & Korsinsky has opened an investigation and is contacting affected investors.

Positive

• Launched "Coty. Curated." turnaround strategy focused on core brands
• Appointed Markus Strobel as interim CEO to lead restructuring

Negative

• $126.9M net loss reported for Q2 FY2026
• Non‑GAAP EPS $0.14 missed consensus by $0.04 (22% shortfall)
• Like‑for‑like revenue declined approximately 3%
• Withdrew full‑year FY2026 guidance, increasing near‑term uncertainty
• Shares fell ~15%, hitting a 52‑week low of $2.66

Key Figures

Q2 net loss: $126.9 million Non-GAAP EPS: $0.14 EPS consensus: $0.18 +5 more

8 metrics

Q2 net loss $126.9 million Second quarter fiscal year 2026

Non-GAAP EPS $0.14 Q2 FY 2026 reported EPS

EPS consensus $0.18 Analyst consensus estimate for Q2 non-GAAP EPS

EPS miss $0.04 Shortfall versus $0.18 consensus

EPS surprise magnitude 22% Negative earnings surprise relative to consensus

Like-for-like revenue change 3% decline Q2 FY 2026 like-for-like revenue versus prior year

Post-earnings move 15% decline After-hours and pre-market reaction on Feb 5, 2026

52-week low $2.66 Post-earnings trading level reached after Q2 release

Market Reality Check

Price: $2.63 Vol: Volume 5,250,355 is at 0....

low vol

$2.63 Last Close

Volume Volume 5,250,355 is at 0.49x the 20-day average, suggesting no unusual trading ahead of this investigation headline. low

Technical Shares at $2.63 are trading below the $4.08 200-day moving average and 57.1% under the 52-week high.

Peers on Argus

COTY is modestly higher (0.77%) while key peers are mixed: IPAR, NWL, and CLX ar...

COTY is modestly higher (0.77%) while key peers are mixed: IPAR, NWL, and CLX are down, ELF and SPB are up, pointing to company‑specific factors rather than a sector‑wide move.

Historical Context

5 past events · Latest: Feb 19 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 19	Product launch (peer)	Neutral	+0.4%	Calvin Klein Fragrances announced new euphoria elixirs collection launch and pricing.
Feb 05	Regulatory filing	Negative	-8.2%	10-Q detailed flat revenue, swing to net loss and weaker operating income.
Feb 05	Earnings results	Negative	-8.2%	Q2 FY2026 net loss, like-for-like revenue decline and withdrawn FY26 guidance.
Feb 02	AI collaboration	Positive	+2.2%	Strategic collaboration with OpenAI to deploy ChatGPT Enterprise across teams.
Dec 22	Leadership change	Positive	-3.7%	Appointment of Markus Strobel as Executive Chairman and Interim CEO.

Pattern Detected

Negative financial/earnings updates have previously coincided with distinct selloffs, while strategic or technology collaborations drew modestly positive reactions.

Recent Company History

Over the past few months, Coty reported Q2 FY2026 results with a $126.9M net loss and weaker profitability, triggering a -8.16% reaction around both the earnings release and related 10‑Q filing. A strategic AI collaboration with OpenAI on Feb 2 was received positively, while leadership changes announced on Dec 22 saw a modest decline. Today’s investigation headline revisits that Q2 loss and withdrawn FY26 guidance, reinforcing concerns already reflected in the stock’s depressed level.

Market Pulse Summary

This announcement revisits Coty’s weak Q2 FY2026 showing, including a $126.9M net loss, $0.14 non‑GA...

Analysis

This announcement revisits Coty’s weak Q2 FY2026 showing, including a $126.9M net loss, $0.14 non‑GAAP EPS versus a $0.18 consensus, and a 3% like‑for‑like revenue decline. The investigation highlights the gap between prior optimistic commentary and eventual results, alongside withdrawn FY2026 guidance and the new “Coty. Curated.” strategy. Investors may track how execution on this turnaround, leadership under the interim CEO, and any legal developments intersect with already‑disclosed financial metrics and balance sheet changes.

Key Terms

non-gaap earnings per share, consensus estimate, securities litigation

3 terms

non-gaap earnings per share financial

"disclosure of a $126.9 million net loss ... and non-GAAP earnings per share of $0.14"

Non-GAAP earnings per share is a company’s reported profit per share after removing certain items that management considers one-time, unusual, or not part of regular operations, such as restructuring costs, stock-based compensation, or asset write-downs. Investors use it like an “adjusted score” to see what management believes is the company’s ongoing, core profitability, but because the adjustments vary between firms it should be compared carefully across companies.

consensus estimate financial

"which fell $0.04 short of the $0.18 consensus estimate"

A consensus estimate is the average forecast from many professional analysts about a company's upcoming financial result—such as earnings or revenue—combined into a single number. Investors use it as a benchmark because reported results above or below that collective expectation often trigger buying or selling; it's like the market's shared weather forecast that shapes how people react when the skies (or numbers) turn out differently.

securities litigation regulatory

"that represents investors in securities litigation and has recovered hundreds of millions"

Securities litigation is a legal dispute brought by investors, regulators, or other parties alleging false statements, misleading information, insider trading, or other wrongdoing tied to the buying, selling, or holding of stocks, bonds or other financial instruments. It matters to investors because lawsuits can produce fines, payouts, damaged reputations and sharp stock moves—like a costly product recall or lawsuit that forces a company to pay and rebuild trust, potentially reducing shareholder value and altering future prospects.

AI-generated analysis. Not financial advice.

NYSE: COTY

NEW YORK, Feb. 19, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP is investigating Coty Inc. (NYSE: COTY) following the company's disclosure of a $126.9 million net loss for the second quarter of fiscal year 2026 and non-GAAP earnings per share of $0.14, which fell $0.04 short of the $0.18 consensus estimate. The results, released after market close on February 5, 2026, sent shares down approximately 15% in after-hours and pre-market trading, pushing the stock to a 52-week low of $2.66. Investors who purchased COTY shares and suffered losses may obtain more information about this investigation.

Coty's quarterly loss stands out within the global beauty and personal care sector, an industry that has generally posted resilient consumer demand over the past two years. Peers such as Estée Lauder, L'Oréal, and Shiseido reported stable or improving margins in their most recent quarters, making Coty's $126.9 million deficit a notable outlier. The company's like-for-like revenue declined approximately 3% in the quarter, a reversal from the low-single-digit growth the company had guided investors to expect. The magnitude of the EPS shortfall—a 22% miss relative to consensus—placed Coty among the widest negative earnings surprises in the mid-cap consumer space for the reporting period, suggesting the gap between the company's public outlook and its internal trajectory may have been significant.

Alongside the earnings miss, Coty withdrew its full-year FY 2026 guidance and unveiled a new "Coty. Curated." turnaround strategy under interim CEO Markus Strobel, aimed at refocusing the portfolio on core brands. The simultaneous retraction of forward-looking targets and introduction of a restructuring plan compounded the negative reaction among investors and analysts.

Prior to the announcement, Coty's management had expressed optimism about the second quarter during the Q1 FY 2026 earnings call on November 6, 2025. CEO Sue Nabi stated the company expected to be at the "more favorable end of our guidance range" for Q2. The contrast between that characterization and the reported loss has drawn scrutiny.

Levi & Korsinsky encourages COTY investors who experienced losses to consider their options. Shareholders who lost money on their Coty investment may click here to learn more about this investigation and their legal rights.

Levi & Korsinsky, LLP is a nationally recognized firm with offices in New York, California, Connecticut, and Washington, D.C. that represents investors in securities litigation and has recovered hundreds of millions of dollars for its clients. For more information, visit www.zlk.com. 

CONTACT:

Joseph E. Levi, Esq.
Levi & Korsinsky, LLP
33 Whitehall Street, 27th Floor
New York, NY 10004
Tel: (212) 363-7500
Fax: (212) 363-7171
Email: jlevi@levikorsinsky.com
www.zlk.com 

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SOURCE Levi & Korsinsky, LLP

FAQ

Why is Levi & Korsinsky investigating Coty (COTY) on February 19, 2026?

Levi & Korsinsky is investigating after Coty reported a significant quarterly loss and earnings shortfall. According to Levi & Korsinsky, the firm opened the probe following Coty's disclosure of a $126.9M Q2 FY2026 loss and an EPS miss that spurred a sharp share decline.

What were Coty (COTY) Q2 FY2026 financial results reported February 2026?

Coty reported a $126.9 million net loss and non‑GAAP EPS of $0.14 for Q2 FY2026. According to Levi & Korsinsky, the EPS fell $0.04 short of the $0.18 consensus, representing about a 22% miss versus estimates.

How did the market react to Coty’s February 5, 2026 results for COTY stock?

Shares fell roughly 15% in after‑hours and pre‑market trading and hit a 52‑week low of $2.66. According to Levi & Korsinsky, the drop followed the unexpected loss, EPS miss, and withdrawal of FY2026 guidance.

What did Coty announce about FY2026 guidance and strategy on February 2026?

Coty withdrew its full‑year FY2026 guidance and launched the "Coty. Curated." turnaround strategy. According to Levi & Korsinsky, the plan aims to refocus the portfolio on core brands under interim leadership.

Who is leading Coty (COTY) following the earnings shock and what is their role?

Interim CEO Markus Strobel was named to lead the company through the turnaround effort. According to Levi & Korsinsky, Strobel will oversee the newly announced "Coty. Curated." strategy and portfolio refocusing.