Ulta Beauty Beats Q2 Estimates and Raises FY2026 Outlook but Stock Slips on Margin Concerns

Ulta Beauty reported a Q2 2026 earnings beat and raised its full-year sales growth guidance to a range of 6.7% to 7.2%, while also announcing $1.8 billion in share buybacks and lifting its EPS outlook. Comparable sales growth came in at 3.8%, but higher discounts and promotions weighed on gross margins, which analysts described as underwhelming. Shares fell roughly 4% on the session despite the strong headline numbers, with the stock underperforming peers.

Analysts broadly noted that guidance may be conservative, particularly given the company's expectation of weaker Q3 comparables relative to Q4 as it gears up for the holiday season. Raymond James maintained its Strong Buy rating, JPMorgan reiterated Overweight citing market share gains, Goldman Sachs and Jefferies both raised their price targets with Jefferies moving to $650, and DA Davidson also lifted its target. UBS moved in the opposite direction, trimming its price target citing margin pressure.

The print placed Ulta among the most-watched retail names heading into the final session of the week, alongside a broader tape focused on Fed Chair Kevin Warsh's Jackson Hole remarks.