Estée Lauder’s first quarter results met Wall Street’s revenue expectations and were received positively by the market, as management attributed performance to double-digit growth in fragrance, strong online sales, and gains in key markets such as Mainland China and emerging economies. CEO Stephane de la Faverie highlighted that “three of four regions grew organically,” with notable share gains in China, the U.S., and across the company’s fragrance portfolio. A strategic focus on channel optimization and product innovation, particularly new launches in fragrance and makeup, contributed meaningfully to the quarter’s growth trajectory.
Is now the time to buy EL? Find out in our full research report (it’s free for active Edge members).
Estée Lauder (EL) Q1 CY2026 Highlights:
- Revenue: $3.71 billion vs analyst estimates of $3.70 billion (4.6% year-on-year growth, in line)
- Adjusted EPS: $0.91 vs analyst estimates of $0.65 (40.4% beat)
- Adjusted EBITDA: $758 million vs analyst estimates of $620.8 million (20.4% margin, 22.1% beat)
- Management raised its full-year Adjusted EPS guidance to $2.40 at the midpoint, a 11.6% increase
- Operating Margin: 6.7%, down from 8.6% in the same quarter last year
- Organic Revenue rose 2% year on year (beat)
- Market Capitalization: $30.86 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Estée Lauder’s Q1 Earnings Call
- Dara Mohsenian (Morgan Stanley) asked about the sustainability of margin expansion and the potential to return to peak historical levels. CEO Stephane de la Faverie emphasized that “margin recovery is a milestone, not a sprint,” and pointed to ongoing cost efficiencies and leverage from growth as key drivers.
- Filippo Falorni (Citi) questioned which regions and categories will drive acceleration. De la Faverie responded that growth is balanced across China, emerging markets, and fragrances, with ongoing momentum in digital channels and stabilization in North America.
- Rupesh Parikh (Oppenheimer) inquired about prospects for North America and inventory management. De la Faverie said the region is positioned for growth next year, supported by improved inventory discipline and gains in both volume and value share across major brands.
- Lauren Lieberman (Barclays) pressed on the company’s willingness to exit underperforming channels, such as department stores. De la Faverie stated that Estée Lauder is “rightsizing” its exposure and reallocating resources to high-growth channels like Amazon and Sephora.
- Bonnie Herzog (Goldman Sachs) asked about the relative impact of sales growth versus cost savings on margin improvement. CFO Akhil Shrivastava explained that both factors are important, with cost initiatives providing margin support even in lower growth environments.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the pace of margin expansion driven by restructuring and technology investments, (2) sustained share gains in China, emerging markets, and travel retail, and (3) the effectiveness of the company’s channel realignment, including performance in specialty and online retail. Progress on innovation launches and integration of new acquisitions will also be key areas to watch.
Estée Lauder currently trades at $85.32, up from $76.71 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
