The Estee Lauder Companies Inc. reported its financial results for the first quarter ended September 30, 2026, in an 8-K filing dated November 2, 2026. The company reported net sales of $3.715 billion for the quarter, representing a 7% increase compared to the same period in the prior year. Organic net sales, which exclude the impact of foreign currency translation, acquisitions, divestitures, and brand closures, increased by 6% to $3.696 billion.
On a GAAP basis, the company reported diluted net earnings per common share of $0.64, compared to $0.13 in the prior year. Adjusted diluted net earnings per common share, a non-GAAP measure, was $0.72, compared to $0.32 in the prior year. The company also reported significant margin expansion. Gross margin expanded by 230 basis points to 75.7%, and operating margin expanded by 610 basis points to 11.0%. Adjusted gross margin expanded by 240 basis points to 75.7%, and adjusted operating margin expanded by 480 basis points to 12.1%.
The company highlighted share gains in key markets, including mainland China, Japan, Korea, the U.S., and Western Europe. It also noted the expansion of its online presence, reaching 13 brands across 17 markets on Amazon and 15 brands across 11 markets on TikTok Shop. The company completed the acquisition of the remaining equity interest in Mountain Valley Springs India Private Limited, the owner of the Forest Essentials brand, in October 2026.
In the press release accompanying the filing, the company announced that it is raising its fiscal 2027 full-year outlook. The company stated that it is raising its outlook for net sales, margin, and diluted net earnings per common share, reflecting its strong start to the fiscal year and its confidence in the future.
