Estée Lauder Beats Q4 Estimates and Raises FY27 Outlook as China Demand Fuels Turnaround

Estée Lauder reported fiscal fourth-quarter revenue of $3.6 billion, topping analyst estimates of $3.54 billion and rising 6% year-over-year. Adjusted earnings per share came in at $0.39, doubling from a year earlier and beating the consensus estimate of $0.32, while adjusted operating income surged 95% to $267 million. For fiscal 2027, the company guided for adjusted EPS of $3.10 to $3.35, straddling the $3.18 analyst estimate, and projected organic net sales growth of 3% to 5% alongside an adjusted operating margin of 13.5%.

Management credited strong demand for premium fragrances and a robust performance in China as key drivers of the continued recovery under its Beauty Reimagined strategy and Profit Recovery and Growth Plan. Skin care and fragrance led segment growth for the full fiscal year, which produced total revenue of $15.05 billion, up 5% and ahead of expectations. Shares jumped sharply in premarket trading, with reports putting the gain between 8% and 15% depending on the time of measurement, reflecting investor enthusiasm for what the company described as a return to growth and substantial improvement in profitability.