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EL Q3 Earnings on the Horizon: Essential Insights for Investors
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Key Takeaways
Estee Lauder is expected to post Q3 revenues of $3.7B, up 4.3% from the prior-year quarter.
Earnings are estimated at 66 cents per share, 1.5% growth from last year's quarter.
Fragrance, China demand and emerging markets may aid sales, while tariffs pressure margins.
The Estee Lauder Companies Inc. (EL - Free Report) is likely to register growth in both top and bottom lines when it reports third-quarter fiscal 2026 earnings on May 1, 2026. The Zacks Consensus Estimate for fiscal third-quarter revenues stands at $3.7 billion, indicating 4.3% growth from the same period last year.
The consensus mark for earnings has remained unchanged in the past 30 days at 66 cents per share, indicating 1.5% growth from the year-ago quarter’s reported figure. Estee Lauder delivered a trailing four-quarter average earnings surprise of 60.7%.
The Estee Lauder Companies Inc. Price, Consensus and EPS Surprise
Things to Consider About Estee Lauder’s Upcoming Results
Estee Lauder has been witnessing a gradual improvement in underlying demand trends, which is expected to have continued in the fiscal third quarter. Strength in mainland China, supported by innovation and higher consumer engagement during key shopping periods, is likely to have aided comparable sales and customer traffic. Growth across select emerging markets and steady retail sales, excluding travel retail, are also anticipated to have contributed to the company’s top-line performance in the to-be-reported quarter.
On a category basis, fragrance has been a consistent growth driver and is expected to have maintained momentum, supported by strong performance in luxury brands, innovation and expanded distribution. Skincare trends are likely to have been supported by hero franchises and improved consumer engagement, while makeup is anticipated to have shown signs of stabilization, aided by new launches and better execution during the quarter under review.
From a profitability standpoint, Estee Lauder is expected to have faced some pressure in the fiscal third quarter. On its second-quarter earnings call, management indicated a year-over-year decline in operating margin for the quarter, primarily reflecting incremental consumer-facing investments and external headwinds, including tariffs. While benefits from cost-saving actions under the Profit Recovery and Growth Plan have been helping to reduce non-consumer-facing expenses, these gains are likely to have been partly offset by continued investments and a still-challenging operating environment, weighing on margin performance in the to-be-reported quarter.
Earnings Whispers for EL Stock
Our proven model does not conclusively predict an earnings beat for Estee Lauder this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Estee Lauder has an Earnings ESP of -2.83% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Some Stocks With a Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
The Zacks Consensus Estimate for BJ's Wholesale Club’s upcoming quarter’s EPS is pegged at $1.05, which implies 7.9% decline year over year. The consensus estimate for the quarterly revenues is pinned at $5.39 billion, which indicates 4.6% growth from the figure reported in the prior-year quarter. BJ delivered a trailing four-quarter earnings surprise of 9.4%, on average.
The J. M. Smucker Company (SJM - Free Report) currently has an Earnings ESP of +1.79% and a Zacks Rank of 3. The consensus mark for the upcoming quarter’s revenues is pegged at $2.28 billion, which indicates an increase of 6.4% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for J. M. Smucker’s quarterly earnings per share of $2.66 implies growth of 15.2% from the figure reported in the year-ago quarter. SJM delivered a trailing four-quarter earnings surprise of 1%, on average.
McCormick & Company, Incorporated (MKC - Free Report) currently has an Earnings ESP of +0.43% and a Zacks Rank of 3. The consensus estimate for the quarterly revenues is pegged at $1.9 million, which indicates a surge of 14.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for McCormick’s upcoming quarter’s EPS is pegged at 71 cents, which implies a 2.9% increase year over year. MKC delivered a trailing four-quarter earnings surprise of roughly 4.5%, on average.
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EL Q3 Earnings on the Horizon: Essential Insights for Investors
Key Takeaways
The Estee Lauder Companies Inc. (EL - Free Report) is likely to register growth in both top and bottom lines when it reports third-quarter fiscal 2026 earnings on May 1, 2026. The Zacks Consensus Estimate for fiscal third-quarter revenues stands at $3.7 billion, indicating 4.3% growth from the same period last year.
The consensus mark for earnings has remained unchanged in the past 30 days at 66 cents per share, indicating 1.5% growth from the year-ago quarter’s reported figure. Estee Lauder delivered a trailing four-quarter average earnings surprise of 60.7%.
The Estee Lauder Companies Inc. Price, Consensus and EPS Surprise
The Estee Lauder Companies Inc. price-consensus-eps-surprise-chart | The Estee Lauder Companies Inc. Quote
Things to Consider About Estee Lauder’s Upcoming Results
Estee Lauder has been witnessing a gradual improvement in underlying demand trends, which is expected to have continued in the fiscal third quarter. Strength in mainland China, supported by innovation and higher consumer engagement during key shopping periods, is likely to have aided comparable sales and customer traffic. Growth across select emerging markets and steady retail sales, excluding travel retail, are also anticipated to have contributed to the company’s top-line performance in the to-be-reported quarter.
On a category basis, fragrance has been a consistent growth driver and is expected to have maintained momentum, supported by strong performance in luxury brands, innovation and expanded distribution. Skincare trends are likely to have been supported by hero franchises and improved consumer engagement, while makeup is anticipated to have shown signs of stabilization, aided by new launches and better execution during the quarter under review.
From a profitability standpoint, Estee Lauder is expected to have faced some pressure in the fiscal third quarter. On its second-quarter earnings call, management indicated a year-over-year decline in operating margin for the quarter, primarily reflecting incremental consumer-facing investments and external headwinds, including tariffs. While benefits from cost-saving actions under the Profit Recovery and Growth Plan have been helping to reduce non-consumer-facing expenses, these gains are likely to have been partly offset by continued investments and a still-challenging operating environment, weighing on margin performance in the to-be-reported quarter.
Earnings Whispers for EL Stock
Our proven model does not conclusively predict an earnings beat for Estee Lauder this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Estee Lauder has an Earnings ESP of -2.83% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Some Stocks With a Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) currently has an Earnings ESP of +0.74% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ's Wholesale Club’s upcoming quarter’s EPS is pegged at $1.05, which implies 7.9% decline year over year. The consensus estimate for the quarterly revenues is pinned at $5.39 billion, which indicates 4.6% growth from the figure reported in the prior-year quarter. BJ delivered a trailing four-quarter earnings surprise of 9.4%, on average.
The J. M. Smucker Company (SJM - Free Report) currently has an Earnings ESP of +1.79% and a Zacks Rank of 3. The consensus mark for the upcoming quarter’s revenues is pegged at $2.28 billion, which indicates an increase of 6.4% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for J. M. Smucker’s quarterly earnings per share of $2.66 implies growth of 15.2% from the figure reported in the year-ago quarter. SJM delivered a trailing four-quarter earnings surprise of 1%, on average.
McCormick & Company, Incorporated (MKC - Free Report) currently has an Earnings ESP of +0.43% and a Zacks Rank of 3. The consensus estimate for the quarterly revenues is pegged at $1.9 million, which indicates a surge of 14.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for McCormick’s upcoming quarter’s EPS is pegged at 71 cents, which implies a 2.9% increase year over year. MKC delivered a trailing four-quarter earnings surprise of roughly 4.5%, on average.