Estée Lauder Pops As Strong Quarter Masks Deep Cuts

Estée Lauder Companies, Inc. (NYSE:EL) stock is jumping Friday morning as strong quarterly performance and margin expansion overshadow a sweeping restructuring that includes thousands of job cuts.

The beauty giant beat expectations across key segments while reshaping its workforce and strategy to revive growth and profitability.

• What’s next for EL stock?

Quarterly Details

The company reported third-quarter adjusted earnings per share of 91 cents, beating the analyst consensus estimate of 65 cents. Quarterly sales of $3.712 billion (+5% year over year) outpaced the Street view of $3.689 billion.

Skincare sales gained 3% to $1.856 billion, Makeup increased 4%, Fragrance jumped 13%, while Hair Care inched up by 2% in the quarter under review.

Adjusted gross profit in the quarter under review jumped 7% year over year to $2.836 billion. Adjusted gross margin expanded to 76.4% from 75% a year ago.

In the quarter under review, adjusted operating income jumped 38% to $557 million. Adjusted operating margin expanded to 15% from 11.4% a year ago.

Dividend

Today, the company announced a quarterly dividend of 35 cents per share on its Class A and Class B Common Stock, payable in cash on June 15, 2026, to stockholders of record at the close of business on May 29, 2026.

Restructuring Plan Expanded

The company has recorded $1.1 billion in restructuring charges so far and raised its total program estimate to $1.5–$1.7 billion.

Expected annual gross benefits increased to $1–$1.2 billion, aimed at improving margins and funding growth initiatives.

The plan now includes cutting 9,000–10,000 jobs (prior plan: 5,800-7,000 jobs), mainly from underperforming retail locations, as part of a broader operational overhaul.

Outlook

Estée Lauder lowered its 2026 GAAP EPS guidance to 69 cents–83 cents from 98 cents–$1.22, missing the $1.43 estimate.

The firm raised 2026 adjusted EPS guidance from $2.03-$2.23 to $2.33-$2.43, versus $2.22 analyst estimate.

Estée Lauder narrowed 2026 sales guidance from $14.756 billion-$15.042 billion to $14.899 billion, versus the $14.952 billion estimate.

EL Price Action: Estée Lauder shares are trading higher by 4.37% to $80.07 at publication on Friday.

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