Estée Lauder Q1 FY2027 earnings review

Q1 adjusted EPS beat the LSEG consensus by 41%, and full-year guidance rose.

Estée Lauder · Q1 FY2027 (Jul-Sep 2026) · Published Nov 2, 2026 · By DeepCell AI · Sources

Estée Lauder Q1 FY2027 earnings review

Fiscal first quarter ended September 30, 2026

For information only, not investment advice. No rating or price target.

Built with DeepCell / deepcell.net

1 · Cover

Q1 adjusted EPS beat the LSEG consensus by 41%, and full-year guidance rose

  1. 1.Adjusted EPS of $0.72 beat the LSEG consensus of $0.51
  2. 2.Net sales rose 6.7%, with 6% organic growth
  3. 3.Fragrance grew 20% organically, while Makeup grew 1%
  4. 4.Adjusted EPS guidance midpoint rose $0.10, and the margin guide rose
  5. 5.Free cash flow was ($235M), a seasonal outflow smaller than last year

Note: Organic net sales and adjusted measures are Estée Lauder’s non-GAAP measures. Q1 is the quarter ended Sep 30, 2026.Source: Estée Lauder Form 8-K, Nov 2, 2026; LSEG via Reuters, Nov 2, 2026; analysis of company data

2

2 · Key takeaways

Q1 adjusted EPS beat the LSEG consensus by 41%, and net sales beat it by 1.8%

Q1 FY2027 results vs consensus

MetricActualConsensusVarianceResult
Adjusted EPS (LSEG)$0.72$0.51+$0.21 / +41.2%Beat
Net sales (LSEG)$3.72B$3.65B+$65M / +1.8%Beat
Adjusted EPS (Zacks)$0.72$0.52+$0.20 / +38.5%Beat
Net sales (Zacks)$3.72B$3.65B+$68M / +1.9%Beat

Share price reaction

Not shown: the Nov 2 regular-session close was not yet available from two sources when this deck was built.

Note: Consensus is LSEG via Reuters and Zacks via Yahoo Finance, as of Nov 2, before the release. LSEG gives net sales rounded to $3.65B.Source: Estée Lauder Form 8-K, Nov 2, 2026; LSEG via Reuters; Zacks via Yahoo Finance, Nov 2, 2026; analysis of company data

3

3 · Q1 versus consensus

Full-year adjusted EPS guidance sits 0.2% above the Zacks consensus after a raise

FY2027 guidance vs Zacks consensus

MetricGuidanceConsensusVariancevs Street
Adjusted EPS (midpoint)$3.325$3.32+$0.005 / +0.2%In line

Fiscal 2027 guidance, Nov 2 vs Aug 19

MetricAug 19 guidanceNov 2 guidanceMidpoint change
Organic net sales growth3.0%–5.0%4.0%–5.5%+75 bps
Reported net sales growth3.0%–5.0%5.0%–6.5%+175 bps
Adjusted operating margin12.7%–13.5%12.9%–13.7%+20 bps
Adjusted diluted EPS$3.10–$3.35$3.20–$3.45+$0.10
Operating cash flow ($M)$1,300M–$1,400M$1,400M–$1,500M+$100M

Note: Variance is guidance midpoint less consensus. Zacks consensus is as of Nov 2, before the release. Prior guidance is the Aug 19, 2026 column in the Nov 2 release.Source: Estée Lauder Form 8-K, Nov 2, 2026; Zacks via Yahoo Finance, Nov 2, 2026; analysis of company data

4

4 · Guidance

Net sales rose 6.7% and adjusted EPS more than doubled

  1. Fragrance drove the quarterFragrance net sales rose 19.4% to $861M.
  2. Adjusted operating income roseAdjusted operating income rose 76.1% to $449M.
  3. Margins widenedAdjusted operating margin rose 476 bps to 12.1%.

Key figures in $M and YoY % for Q1 FY2027 vs Q1 FY2026

$M unless notedQ1 FY2026Q1 FY2027YoY
Net sales$3,481M$3,715M6.7%
Gross profit$2,554M$2,813M10.1%
Operating income$169M$408M+141%
Net earnings$47M$233M+396%
Adjusted diluted EPS$0.32$0.72+125%

Note: Adjusted EPS excludes restructuring and other charges. Diluted EPS as reported was $0.64, from $0.13.Source: Estée Lauder Form 8-K, Nov 2, 2026; analysis of company data

5

5 · Q1 at a glance

Fragrance net sales rose 19.4%, and every category but Hair Care grew

Net sales and operating income by product category

$M unless noted, Q1 FY2027 (growth vs Q1 FY2026)

CategoryNet salesReportedOrganicOperating income
Skin Care$1,651M4.8%4%$262M
Makeup$1,048M1.7%1%$3M
Fragrance$861M19.4%20%$166M
Hair Care$128M(0.8%)0%$5M
Total (adjusted)$3,716M6.7%6%$449M
Makeup returned to operating income of $3M, from a ($15M) loss

Note: Organic growth is as reported by the company, in whole percent. Other ($28M) is not shown. Totals exclude restructuring returns and charges.Source: Estée Lauder Form 8-K, Nov 2, 2026; analysis of company data

6

6 · Product categories

Fragrance supplied 60% of the $234M net sales increase

Net sales change by category

$M, Q1 FY2027 vs Q1 FY2026

$M · Fragrance: $140M$M · Skin Care: $76M$M · Makeup: $18M$M · Other: $3M$M · Hair Care: -$1M$M · Returns: $2M$M · Total: $234MFragranceSkin CareMakeupOtherHair CareReturnsTotal$0M$50M$100M$150M$200M$260M$140M$76M$18M$3M-$1M$2M$234M
Fragrance organic growth was 20%

Note: Bars are each category’s YoY change and sum to the total. Returns are restructuring-related returns.Source: Estée Lauder Form 8-K, Nov 2, 2026; analysis of company data

7

7 · Where sales growth came from

Asia/Pacific grew 10% organically, while EUKEM and the Americas grew 4%

Organic net sales growth by region

% change YoY, Q1 FY2027

Organic growth · Asia/Pacific: 10.0%Organic growth · China: 9.0%Organic growth · Americas: 4.0%Organic growth · EUKEM region: 4.0%Asia/PacificChinaAmericasEUKEM region0.0%5.0%10.0%15.0%20.0%10.0%9.0%4.0%4.0%
Asia/Pacific operating income rose 72.7%

Note: EUKEM is Europe, the UK and Ireland, and Emerging Markets. Organic growth excludes currency, acquisitions and restructuring returns. China is Mainland China. Asia/Pacific includes Asia travel retail.Source: Estée Lauder Form 8-K, Nov 2, 2026; analysis of company data

8

8 · Organic growth by region

Net earnings rose to $233M from $47M as gross profit rose 10.1%

Net earnings

$M, Q1 FY2026 to Q1 FY2027

$M · Q1 FY26: $47M$M · Gross: $259M$M · Expenses: -$69M$M · Charges: $49M$M · Other: -$3M$M · Taxes: -$50M$M · Q1 FY27: $233MQ1 FY26GrossExpensesChargesOtherTaxesQ1 FY27$0M$100M$200M$300M$400M$47M$259M-$69M$49M-$3M-$50M$233M
SG&A rose only 3.0%, slower than gross profit

Note: SG&A is selling, general and administrative expense. Gross is the change in gross profit. Steps are YoY changes; higher SG&A (Expenses) and taxes are shown as reductions, and lower restructuring and other charges as a benefit (Charges).Source: Estée Lauder Form 8-K, Nov 2, 2026; analysis of company data

9

9 · Net earnings bridge

Adjusted operating margin rose 476 bps to 12.1%, as gross margin rose 235 bps

Gross margin and adjusted operating margin

% of net sales, Q1 FY2026 vs Q1 FY2027

Gross margin · Q1 FY2026: 73.4%Gross margin · Q1 FY2027: 75.7%Adjusted operating margin · Q1 FY2026: 7.3%Adjusted operating margin · Q1 FY2027: 12.1%Q1 FY2026Q1 FY20270.0%25.0%50.0%75.0%90.0%73.4%7.3%

Gross marginAdjusted operating margin

Gross margin reached 75.7% and adjusted operating margin 12.1%. SG&A fell to 63.7% of net sales, from 66.0%

Note: Gross margin is as reported. Adjusted operating margin uses adjusted net sales and excludes restructuring and other charges.Source: Estée Lauder Form 8-K, Nov 2, 2026; analysis of company data

10

10 · Margins

Free cash flow improved by $201M to ($235M) in the seasonally weak quarter

Cash flow

$M, three months ended Sep 30, 2026

$M · Operating CF: -$166M$M · Capital spending: -$69M$M · Free cash flow: -$235M$M · Dividends: -$126MOperating CFCapital spendingFree cash flowDividends-$400M-$300M-$200M-$100M$0M-$166M-$69M-$126M
Free cash flow was ($235M), from ($436M) a year earlier

Note: Free cash flow is operating cash flow (Operating CF) less capital expenditures. Outflows are shown as negative values.Source: Estée Lauder Form 8-K, Nov 2, 2026; analysis of company data

11

11 · Cash flow

12 · Fragrance share

13 · Balance sheet

Estimates for later quarters depend on Makeup, up only 1% organically, and a slower second half

Indicator
What to watch
Implication
Q1 reading
Makeup
Growth stays near flat
Full-year return to growth at risk
Organic growth of 1%
Hair Care
Aveda supply issues persist
Category sales could fall
Organic growth of 0%
Second half
Company expects slower growth
Q1 pace may not hold
Full-year organic guide 4.0%–5.5%
Working capital
Receivables and inventory build
Cash flow could lag earnings
Inventory rose to $2,147M

Note: These are analytical watch points, not company targets.Source: Estée Lauder Form 8-K, Nov 2, 2026; analysis of company data

14

14 · Risks to estimates

Appendix: supporting analysis for categories and regions

ClaimEvidenceCalculation
Skin Care profit roseSkin Care operating income $187M to $262M (40.1%)As reported
Mainland China sales roseMainland China net sales 15.4% reported; 9% organicAs reported
EUKEM margin widenedEUKEM operating margin 0.7% to 4.8%Operating income divided by net sales

EUKEM is Europe, the UK and Ireland, and Emerging Markets. Source: Estée Lauder Form 8-K, Nov 2, 2026; analysis of company data

15

15 · Supporting analysis (1/4)

Appendix: supporting analysis for profit and margins

ClaimEvidenceCalculation
Reported EPS rose furtherDiluted EPS $0.13 to $0.64; adjusted $0.32 to $0.72As reported and adjusted
Restructuring charges fellRestructuring and other charges $89M to $40MAs reported
Adjusted tax rate fellAdjusted effective tax rate 40.5% to 31.9%Company non-GAAP reconciliation
Reported operating margin widenedOperating margin 4.9% to 11.0% (+613 bps)Operating income divided by net sales

Source: Estée Lauder Form 8-K, Nov 2, 2026; analysis of company data

16

16 · Supporting analysis (2/4)

Appendix: guidance, cash flow and balance sheet support

ClaimEvidenceCalculation
GAAP EPS guidance roseDiluted EPS $2.85–$3.18, from $2.52–$2.85As stated in the outlook
Adjusted EPS growth impliedMidpoint 32% above FY2026 adjusted EPS of $2.51Midpoint divided by FY2026
Capital spending fellCapital expenditures $96M to $69MAs reported
Dividends were steadyDividends paid $126M; $0.35M a share declared on Nov 2Declared after the quarter end

Source: Estée Lauder Form 8-K, Nov 2, 2026; analysis of company data

17

17 · Supporting analysis (3/4)

Appendix: watch items behind guidance and risks

ClaimEvidenceCalculation
Tax rate guideAdjusted effective tax rate of about 33%–34%As stated in the outlook
Share count guideDiluted shares of about 368M, from 366.1M in Q1As stated in the outlook
Receivables rose seasonallyAccounts receivable increase of ($399M) in operating cash flowAs reported
Consumer-facing spend roseConsumer-facing investments up 8% YoYAs stated in the release

Source: Estée Lauder Form 8-K, Nov 2, 2026; analysis of company data

18

18 · Supporting analysis (4/4)

Appendix: operating expense and regional detail

Operating expense detail, $M and YoY %

$M unless notedQ1 FY2026Q1 FY2027YoY
Selling, general and administrative$2,296M$2,365M3.0%
Restructuring and other charges$89M$40M—
Total operating expenses$2,385M$2,405M0.8%

Net sales by region, $M and YoY %

$M unless notedQ1 FY2026Q1 FY2027YoY
The Americas$1,174M$1,227M4.5%
EUKEM$901M$923M2.4%
Asia/Pacific$873M$952M9.0%
Mainland China$532M$614M15.4%

Note: EUKEM is Europe, the UK and Ireland, and Emerging Markets. All figures are as reported (GAAP). Regional sales exclude restructuring returns.Source: Estée Lauder Form 8-K, Nov 2, 2026; analysis of company data

19

19 · Appendix: financial detail

Appendix: sources

  • Filing: Estée Lauder Form 8-K, Nov 2, 2026 — https://www.sec.gov/Archives/edgar/data/1001250/000100125026000057/fy2027q1exhibit991.htm
  • Prior guidance: the “Prior - August 19, 2026” column of the outlook tables in the same release
  • Consensus (Q1 adjusted EPS, net sales): Reuters citing LSEG, Nov 2 — https://www.investing.com/news/stock-market-news/estee-lauder-raises-annual-forecasts-on-resilient-demand-ahead-of-holiday-season-4990805
  • Consensus (cross-check and FY2027 EPS): Zacks via Yahoo Finance, Nov 2 — https://finance.yahoo.com/markets/stocks/articles/estee-lauder-el-q1-earnings-133002234.html
  • Region definition: Q1 FY2027 Form 10-Q — https://www.sec.gov/Archives/edgar/data/1001250/000100125026000060/el-20260930.htm

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20

20 · Sources

Important disclosures and disclaimer

For information only. This presentation is provided for information only. It is not investment, legal, tax or accounting advice, and it is not an offer, or a solicitation of an offer, to buy or sell any security.

No recommendation. It carries no rating, price target or buy, sell or hold view, and it was prepared without regard to any reader's investment objectives, financial situation or needs.

Sources and accuracy. Company figures come from The Estée Lauder Companies' Form 8-K (Exhibit 99.1) of November 2, 2026, including the prior guidance it restates, and its Form 10-Q. Consensus estimates (LSEG via Reuters, Zacks via Yahoo Finance) are third-party data, credited on the sources page. We have not independently verified third-party data and make no warranty that any information here is accurate, complete or timely.

Forward-looking statements. Company guidance, consensus estimates and the watch items in this deck are forward-looking. They rest on assumptions that may prove wrong, and actual results may differ materially.

Past performance. Past results, including those for the fiscal 2027 first quarter, are not a reliable indicator of future results.

Non-GAAP measures. Organic net sales, adjusted measures and free cash flow follow the company's own definitions. They supplement, and do not replace, GAAP results, and they may not be comparable with other companies' measures. The earnings release reconciles them to GAAP.

No liability. No liability is accepted for any direct or indirect loss arising from the use of this presentation or its contents.

No affiliation. This presentation is not affiliated with, reviewed or endorsed by The Estée Lauder Companies Inc. and does not represent its views. Company and brand names belong to their owners.

How it was made. The deck was built with DeepCell, with figures linked to a model in the file. Readers should check the figures against the original filings and consult a qualified professional adviser before making any investment decision.

Date of analysis. The analysis reflects information available as of November 2, 2026. It will not be updated for later events, and views may change without notice.

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21

21 · Important disclosures

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