Estée Lauder Q1 FY2027 earnings review
Fiscal first quarter ended September 30, 2026
For information only, not investment advice. No rating or price target.
Earnings reviews · 21 slides
Not investment advice; no rating or price target.
1 · Cover · Open this slide in DeepCell
Q1 adjusted EPS beat the LSEG consensus by 41%, and full-year guidance rose
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 · Key takeaways · Open this slide in DeepCell
Q1 adjusted EPS beat the LSEG consensus by 41%, and net sales beat it by 1.8%
Q1 FY2027 results vs consensus
| Metric | Actual | Consensus | Variance | Result |
|---|---|---|---|---|
| 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 · Q1 versus consensus · Open this slide in DeepCell
Full-year adjusted EPS guidance sits 0.2% above the Zacks consensus after a raise
FY2027 guidance vs Zacks consensus
| Metric | Guidance | Consensus | Variance | vs Street |
|---|---|---|---|---|
| Adjusted EPS (midpoint) | $3.325 | $3.32 | +$0.005 / +0.2% | In line |
Fiscal 2027 guidance, Nov 2 vs Aug 19
| Metric | Aug 19 guidance | Nov 2 guidance | Midpoint change |
|---|---|---|---|
| Organic net sales growth | 3.0%–5.0% | 4.0%–5.5% | +75 bps |
| Reported net sales growth | 3.0%–5.0% | 5.0%–6.5% | +175 bps |
| Adjusted operating margin | 12.7%–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 · Guidance · Open this slide in DeepCell
Net sales rose 6.7% and adjusted EPS more than doubled
- Fragrance drove the quarterFragrance net sales rose 19.4% to $861M.
- Adjusted operating income roseAdjusted operating income rose 76.1% to $449M.
- Margins widenedAdjusted operating margin rose 476 bps to 12.1%.
Key figures in $M and YoY % for Q1 FY2027 vs Q1 FY2026
| $M unless noted | Q1 FY2026 | Q1 FY2027 | YoY |
|---|---|---|---|
| Net sales | $3,481M | $3,715M | 6.7% |
| Gross profit | $2,554M | $2,813M | 10.1% |
| 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 · Q1 at a glance · Open this slide in DeepCell
Fragrance net sales rose 19.4%, and every category but Hair Care grew
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 · Product categories · Open this slide in DeepCell
Fragrance supplied 60% of the $234M net sales increase
Net sales change by category
$M, Q1 FY2027 vs Q1 FY2026
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 · Where sales growth came from · Open this slide in DeepCell
Asia/Pacific grew 10% organically, while EUKEM and the Americas grew 4%
Organic net sales growth by region
% change YoY, Q1 FY2027
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 · Organic growth by region · Open this slide in DeepCell
Net earnings rose to $233M from $47M as gross profit rose 10.1%
Net earnings
$M, Q1 FY2026 to Q1 FY2027
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 · Net earnings bridge · Open this slide in DeepCell
Adjusted operating margin rose 476 bps to 12.1%, as gross margin rose 235 bps
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 · Margins · Open this slide in DeepCell
Free cash flow improved by $201M to ($235M) in the seasonally weak quarter
Cash flow
$M, three months ended Sep 30, 2026
Free cash flow was ($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 · Cash flow · Open this slide in DeepCell
Fragrance rose to 23.2% of net sales, from 20.7%
Fragrance as a share of net sales
% of adjusted net sales, Q1 FY2026 vs Q1 FY2027
Fragrance operating income rose 93.0%
Note: Share uses adjusted net sales, which exclude restructuring returns, as in the category table.Source: Estée Lauder Form 8-K, Nov 2, 2026; analysis of company data
12 · Fragrance share · Open this slide in DeepCell
Net debt rose to $4,053M from $3,808M as cash fell in the quarter
Note: Total debt is current debt plus long-term debt. Net debt is total debt less cash. June 30, 2026 is the fiscal year end.Source: Estée Lauder Form 8-K, Nov 2, 2026; analysis of company data
13 · Balance sheet · Open this slide in DeepCell
Estimates for later quarters depend on Makeup, up only 1% organically, and a slower second half
Indicator
What to watch
Implication
Q1 reading
Note: These are analytical watch points, not company targets.Source: Estée Lauder Form 8-K, Nov 2, 2026; analysis of company data
14 · Risks to estimates · Open this slide in DeepCell
Appendix: supporting analysis for categories and regions
| Claim | Evidence | Calculation |
|---|---|---|
| Skin Care profit rose | Skin Care operating income $187M to $262M (40.1%) | As reported |
| Mainland China sales rose | Mainland China net sales 15.4% reported; 9% organic | As reported |
| EUKEM margin widened | EUKEM 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 · Supporting analysis (1/4) · Open this slide in DeepCell
Appendix: supporting analysis for profit and margins
| Claim | Evidence | Calculation |
|---|---|---|
| Reported EPS rose further | Diluted EPS $0.13 to $0.64; adjusted $0.32 to $0.72 | As reported and adjusted |
| Restructuring charges fell | Restructuring and other charges $89M to $40M | As reported |
| Adjusted tax rate fell | Adjusted effective tax rate 40.5% to 31.9% | Company non-GAAP reconciliation |
| Reported operating margin widened | Operating 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 · Supporting analysis (2/4) · Open this slide in DeepCell
Appendix: guidance, cash flow and balance sheet support
| Claim | Evidence | Calculation |
|---|---|---|
| GAAP EPS guidance rose | Diluted EPS $2.85–$3.18, from $2.52–$2.85 | As stated in the outlook |
| Adjusted EPS growth implied | Midpoint 32% above FY2026 adjusted EPS of $2.51 | Midpoint divided by FY2026 |
| Capital spending fell | Capital expenditures $96M to $69M | As reported |
| Dividends were steady | Dividends paid $126M; $0.35M a share declared on Nov 2 | Declared after the quarter end |
Source: Estée Lauder Form 8-K, Nov 2, 2026; analysis of company data
17 · Supporting analysis (3/4) · Open this slide in DeepCell
Appendix: watch items behind guidance and risks
| Claim | Evidence | Calculation |
|---|---|---|
| Tax rate guide | Adjusted effective tax rate of about 33%–34% | As stated in the outlook |
| Share count guide | Diluted shares of about 368M, from 366.1M in Q1 | As stated in the outlook |
| Receivables rose seasonally | Accounts receivable increase of ($399M) in operating cash flow | As reported |
| Consumer-facing spend rose | Consumer-facing investments up 8% YoY | As stated in the release |
Source: Estée Lauder Form 8-K, Nov 2, 2026; analysis of company data
18 · Supporting analysis (4/4) · Open this slide in DeepCell
Appendix: operating expense and regional detail
Operating expense detail, $M and YoY %
| $M unless noted | Q1 FY2026 | Q1 FY2027 | YoY |
|---|---|---|---|
| Selling, general and administrative | $2,296M | $2,365M | 3.0% |
| Restructuring and other charges | $89M | $40M | — |
| Total operating expenses | $2,385M | $2,405M | 0.8% |
Net sales by region, $M and YoY %
| $M unless noted | Q1 FY2026 | Q1 FY2027 | YoY |
|---|---|---|---|
| The Americas | $1,174M | $1,227M | 4.5% |
| EUKEM | $901M | $923M | 2.4% |
| Asia/Pacific | $873M | $952M | 9.0% |
| Mainland China | $532M | $614M | 15.4% |
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 · Appendix: financial detail · Open this slide in DeepCell
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 · Sources · Open this slide in DeepCell
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 · Important disclosures · Open this slide in DeepCell