From 139 Percent Rally To 19 Percent Plunge Estée Lauder Meets Tariff Reality

Earnings Beat, But Outlook Disappoints For the quarter ended December 31, 2025, Estée Lauder reported earnings per share of $0.89, topping the consensus of about $0.83 and up roughly 43% year on year. Net sales came in around $4.23 billion, up 6% from the prior year and slightly ahead of estimates.

These numbers confirm that the company’s turnaround efforts and cost controls are starting to show in the P&L. However, the guidance overshadowed the beat.

Management reiterated that tariff related challenges are expected to cut fiscal 2026 profitability by about $100 million, mainly in the second half of the year, even after mitigation efforts.

They also flagged that Q3 margin will likely contract by roughly 50 basis points due to the timing of marketing investments and those same tariff headwinds…