EL · 10-Q · 2026Q3 · Full report
Operating Income and Margins
ESTEE LAUDER COMPANIES INC · 2026-11-02 · Importance 69 · Surprise 64 · In source text
Operating margin increased to 11.0% for the quarter ended September 30, 2026, from 4.9% in the prior-year period, while reported operating income increased by more than 100%. The margin improvement was primarily driven by higher net sales and gross margin. Fragrance operating income rose $80 million, or 93%, and Skin Care operating income rose $75 million, or 40%, with sales growth and lower non-consumer-facing expenses among the cited drivers.
Key facts
- ESTEE LAUDER COMPANIES INC fragrance operating income increased $80 million, or 93%, in the three months ended September 30, 2026, primarily driven by higher net sales and partly offset by increased consumer-facing investment. source
- ESTEE LAUDER COMPANIES INC hair care operating results increased $17 million, or over 100%, in the three months ended September 30, 2026, primarily due to lower non-consumer-facing expenses and lower cost of sales. source
- ESTEE LAUDER COMPANIES INC EUKEM operating income increased $38 million, or over 100%, in the three months ended September 30, 2026, primarily due to higher sales and lower non-consumer-facing expenses, partly offset by increased consumer-facing investment. source
- ESTEE LAUDER COMPANIES INC Asia/Pacific operating income increased $109 million, or 73%, in the three months ended September 30, 2026, primarily due to higher net sales and, to a lesser extent, lower cost of sales. source
- ESTEE LAUDER COMPANIES INC skin care operating income increased $75 million, or 40%, in the three months ended September 30, 2026, primarily from higher sales and lower non-consumer-facing expenses, partly offset by increased consumer-facing investment. source
- ESTEE LAUDER COMPANIES INC Mainland China operating income increased $20 million, or over 100%, in the three months ended September 30, 2026, primarily due to higher sales, partly offset by consumer-facing investment. source
- ESTEE LAUDER COMPANIES INC makeup operating results increased $18 million, or over 100%, in the three months ended September 30, 2026, driven primarily by higher sales and lower non-consumer-facing expenses, partly offset by higher consumer-facing investment. source
- ESTEE LAUDER COMPANIES INC The Americas operating income increased $27 million, or 31%, in the three months ended September 30, 2026, primarily from higher net sales and lower cost of sales, partly offset by increased consumer-facing investment. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +2.9% | ESTEE LAUDER COMPANIES INC Asia/Pacific operating income increased $109 million, or 73%, in the three months ended September 30, 2026,… |
| operating_income | positive | realized | +2.1% | ESTEE LAUDER COMPANIES INC fragrance operating income increased $80 million, or 93%, in the three months ended September 30, 2026,… |
| operating_income | positive | realized | +2.0% | ESTEE LAUDER COMPANIES INC skin care operating income increased $75 million, or 40%, in the three months ended September 30, 2026,… |
| operating_income | positive | realized | +1.0% | ESTEE LAUDER COMPANIES INC EUKEM operating income increased $38 million, or over 100%, in the three months ended September 30, 2026,… |
| operating_income | positive | realized | +0.5% | ESTEE LAUDER COMPANIES INC Mainland China operating income increased $20 million, or over 100%, in the three months ended September 30,… |
| operating_income | positive | realized | +0.5% | ESTEE LAUDER COMPANIES INC hair care operating results increased $17 million, or over 100%, in the three months ended September 30, 2026,… |