Estée Lauder Revenue Tops $15 Billion as Profit Swings Back and Margin Outlook Rises
Estée Lauder's fiscal fourth-quarter revenue rose 6% to $3.6 billion, beating analyst estimates. Fiscal 2026 revenue moved above $15 billion, while operating profit swung from a $785 million loss to a $780 million profit.
Estée Lauder's annual sales returned to growth after three consecutive declines. The April-to-June quarter also lifted the company's shares 7% in pre-market trading after the results were released.
Fiscal 2026 revenue increased 5% to more than $15 billion. Gross profit rose 7% to $11.3 billion, taking gross margin to 75.5%. The operating result was the sharper change: a $785 million loss a year earlier became $780 million of profit, equivalent to a 5.2% operating margin.
The company linked the improvement to its Beauty Reimagined plan and restructuring efforts. Organic sales increased 3% for the full fiscal year and accelerated to 5% in the fourth quarter, with growth spread across the group's brands.
Management reaffirmed its fiscal 2027 sales outlook and raised its forecast for adjusted operating margin. CEO Stéphane de La Faverie said the company expects further organic-sales growth and a stronger adjusted margin as it broadens growth across product categories and regions, including North America.