EL · 8-K · 20261102PR000057

Income Tax Rate Changes

ESTEE LAUDER COMPANIES INC · 2026-11-02 · Importance 45 · Surprise 64 · In source text

The reported effective tax rate fell to 32.5% in the fiscal 2027 first quarter from 56.9% in the prior-year quarter, while income tax provision increased 81% to $112 million from $62 million. The adjusted effective tax rate decreased to 31.9% from 40.5%. The company attributed the rate decline primarily to a more favorable estimated full-year earnings mix, partially offset by higher estimated unrecognized tax benefits, primarily related to transfer pricing matters.

Key facts

• The company’s fiscal 2027 adjusted effective tax rate outlook is approximately 33%–34%. source
• The effective tax rate decreased to 32.5% from 56.9%; the adjusted effective tax rate decreased to 31.9% from 40.5%. source
• The lower tax rates reflected lower pretax income in the fiscal 2026 first quarter; the decrease was primarily driven by a more favorable estimated full-year mix of earnings, partly offset by an estimated increase in unrecognized tax benefits primarily related to transfer pricing matters. source

Impact estimates