In early February 2026, The Estée Lauder Companies reported improved quarterly results with sales rising to US$4,229 million and net income reaching US$162 million, reaffirmed a US$0.35 quarterly dividend, and revised full-year 2026 guidance to forecast 3%–5% reported sales growth and Reported EPS of US$0.98–US$1.22.
The company's progress on its profit recovery and turnaround plan, led by stronger performance in skincare and fragrance and better margins, signals that recent restructuring and growth investments are beginning to translate into healthier earnings.
We'll now examine how this improved profitability outlook and raised guidance may influence Estée Lauder's existing investment narrative and risk profile.
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To own Estée Lauder today, you need to believe its profit recovery and "Beauty Reimagined" plan can steadily rebuild margins while travel retail, China exposure, and makeup weakness remain manageable. The latest quarter's return to profitability and higher full year guidance support that turnaround thesis, but they do not remove the key near term risk that any setback in Asia travel or emerging markets could quickly reintroduce earnings volatility.
The reaffirmed US$0.35 quarterly dividend alongside improved earnings and guidance is particularly relevant, because it shows management pairing profit recovery with ongoing cash returns to shareholders while still funding restructuring and growth investments. For investors focused on the turnaround catalyst, this balance between reinvestment and payouts will matter if revenue growth or margin gains come in at the low end of the company's new outlook.
Uncover how Estée Lauder Companies' forecasts yield a $104.30 fair value , in line with its current price.
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