Estée Lauder Q4 Results Beat Expectations, Analysts Raise Price Targets

Estée Lauder reported fourth-quarter financial results that beat expectations on Wednesday and issued fiscal 2027 sales guidance with a midpoint above analyst estimates.

Adjusted earnings per share came in at 39 cents, surpassing the analyst estimate of 32 cents. The Middle East conflict reduced adjusted EPS by 5 cents. However, tariff refunds provided a 7-cent benefit.

Sales rose 6% year-over-year to $3.63 billion, exceeding the analyst estimate of $3.54 billion. Organic net sales grew 5%.

For fiscal 2027, Estée Lauder expects adjusted EPS of $3.10 to $3.35, versus the analyst estimate of $3.18. The company maintained its guidance for organic net sales growth of 3% to 5%. The company expects stronger growth in the first half, benefiting from earlier product launches, higher travel retail shipments, and an easier year-over-year comparison base.

Estée Lauder projects fiscal 2027 sales of $15.5 billion to $15.8 billion, versus the analyst estimate of $15.56 billion.

President and CEO Stéphane de La Faverie said: "I am very proud of our team for delivering a fiscal 2026 that exceeded the expectations we set at the start of the year. We reignited growth with 3% organic sales growth, driven by the breadth of brand growth, and delivered significant operating margin expansion. We closed the year on a high note, with organic sales growth accelerating to 5%, marking our fourth consecutive quarter of growth and stronger profitability. We are delivering results across every aspect of our 'Beauty Reimagined' strategy. Our One EL operating model is increasingly enabling the entire organization to act with speed and discipline."

Estée Lauder shares fell 0.5% on Thursday, trading at $97.57.

The following analysts adjusted their price targets on Estée Lauder following the earnings release.

RBC Capital analyst Nik Modi maintained an Outperform rating on the stock and raised the price target from $111 to $120.

B. Riley Securities analyst Anna Glaessgen reiterated a Neutral rating on the stock and raised the price target from $85 to $100.

TD Cowen analyst Oliver Chen maintained a Hold rating on the stock and raised the price target from $90 to $100.

Wells Fargo analyst Christopher Carey maintained an Equal-Weight rating on the stock and raised the price target from $85 to $104.

Piper Sandler analyst Anna Andreeva maintained an Overweight rating on the stock and raised the price target from $95 to $115.

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