Estée Lauder's third quarter 2026 earnings beat estimates, driven by 10% fragrance growth and a raised full-year outlook.

Estée Lauder reported third quarter net sales of $3.71 billion, an increase of 5% year-over-year, and adjusted EPS of $0.91, up 40%. The results surpassed analyst expectations, driven by strength in the Fragrance category and improved profitability from the company's recovery plan.

Key Highlights

• The company raised its full-year fiscal 2026 outlook, now expecting organic net sales growth of approximately 3% and adjusted diluted EPS to range between $2.35 and $2.45.
• The Fragrance segment delivered strong performance with organic net sales increasing 10% year-over-year, led by luxury brands including Le Labo, KILIAN PARIS, and TOM FORD.
• Profitability improved significantly, with adjusted operating margin expanding 360 basis points to 15.0% from 11.4% in the prior-year period, driven by gross margin expansion and benefits from its Profit Recovery and Growth Plan.
• Organic net sales in Mainland China grew 6%, which the company noted outperformed the broader prestige beauty market.