Estee Lauder Tops Q1 Estimates and Raises Full-Year Outlook as Fragrance Surges and Margins Recover

Estee Lauder posted stronger-than-expected fiscal first quarter results for the period ended September 30, 2026, reporting net sales of $3.72 billion against analyst estimates of roughly $3.65-3.66 billion, a 7% increase year over year. Adjusted earnings per share came in at $0.72, doubling from a year earlier and well ahead of the $0.51 consensus estimate. Adjusted operating margin expanded 480 basis points to 12.1%, reflecting benefits from its profit recovery and growth program, including procurement savings, expense optimization, and manufacturing efficiencies, as well as a $45 million year-over-year decline in restructuring charges.

Fragrance was the standout category, generating $861 million in revenue, up 19% year over year and well above the $764 million estimate. Skin care, the company's largest segment, produced $1.65 billion, up 5% but slightly below the $1.68 billion estimate. Makeup contributed $1.05 billion, roughly in line with expectations. By region, Asia-Pacific grew 9% to $952 million, with mainland China delivering $614 million and 9% organic sales growth. The Americas rose 5% to $1.23 billion, while Europe, the Middle East and emerging markets added $923 million, up 2%.

The company raised its full fiscal year 2027 guidance across all metrics. It now expects organic net sales growth of 4% to 5.5%, up from a prior range of 3% to 5%, and full-year net sales growth of 5% to 6.5%, compared with the previous 3% to 5% forecast. Adjusted EPS guidance was lifted to $3.20 to $3.45 from $3.10 to $3.35, while GAAP EPS guidance moved to $2.85 to $3.18 from $2.52 to $2.85. The company cited resilient demand for premium skincare and fragrance heading into the holiday season as a basis for the increased confidence.