Estee Lauder Plunges 19% After Q2 EPS Beat but Lowers FY26 Guidance
Estee Lauder reported Q2 adjusted EPS of $0.89, beating the $0.83 estimate, and revenue of $4.229 billion versus $4.219 billion expected. The company raised its fiscal 2026 EPS guidance to $2.03-$2.23 but projected a $100 million tariff headwind and a midpoint EPS of $2.13 below the $2.15 consensus.
1. Q2 Results Exceed Expectations
In the second quarter, Estee Lauder delivered adjusted EPS of $0.89, topping the $0.83 consensus, and generated revenue of $4.229 billion, narrowly outpacing the $4.219 billion forecast.
2. FY26 Guidance Raised but Below Street
The company increased its full-year adjusted EPS outlook to a range of $2.03 to $2.23, but a midpoint of $2.13 remains below the $2.15 Wall Street estimate, reflecting tempered optimism.
3. Tariff Headwinds to Trim $100M
Estee Lauder warned that new and higher tariffs will erode profitability by about $100 million in fiscal 2026, with most of the impact expected in the second half of the year.
4. Market Reaction and Analyst Views
Shares plunged 19% on the combination of tariff concerns and lighter guidance, while analysts at Telsey, RBC, Deutsche Bank and TD Cowen issued mixed ratings and price targets ranging from $105 to $130.