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Estée Lauder Companies 8-K Report, Financial Results (Aug 19, 2026)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed August 19, 2026
Period End
August 19, 2026
Security
EL
In the record · 2016–202610-K1110-Q338-K126

EL filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 126 current reports (8-K) between 2016 and 2026.

  1. Restructuring8-K · Mar ’18Mar ’18
  2. Auditor change8-K · Feb ’20Feb ’20
  3. Leadership change8-K · Oct ’21Oct ’21
  4. Leadership change8-K · Aug ’25Aug ’25

01—Abstract

Summary

Summary of the 8-K filed August 19, 2026. Cited figures are marked; the original filing is the authoritative source.

The Estée Lauder Companies Inc. (NYSE: EL) reported fiscal 2026 results for the year ended June 30, 2026, returning to sales growth with as-reported net sales of $15.05 billiona, up 5%, and organic net sales up 3%.

As-reported operating income was $780 millionb (5.2% margin) versus an operating loss of $785 million in the prior year, while adjusted operating income rose 47% to $1.69 billion, with adjusted operating margin of 11.2%, up from 8.0%. As-reported diluted EPS was $0.50 versus a loss of $3.15, and adjusted diluted EPS was $2.51, up 66% from $1.51. Fourth-quarter net sales rose 6% as reported and 5% organic, and the company reported a fourth-quarter net loss of $116 million.

Cash generation improved, with operating cash flow of $1.77 billionc and free cash flow of $1.32 billion, compared with $0.67 billion in the prior year. The company paid $300 million in deferred consideration for the TOM FORD acquisition and $508 million in dividends. The company also disclosed that it concluded approvals for the restructuring component of its Profit Recovery and Growth Plan (PRGP), with cumulative restructuring charges of $1.4 billion to date and total gross benefits of $1.2 billion expected.

For fiscal 2027, the company affirmed organic net sales growth of 3% to 5% and raised its adjusted operating margin outlook to 12.7% to 13.5%, from a prior range of 12.5% to 13.0%. Forecast GAAP diluted EPS is $2.52 to $2.85d, and forecast adjusted EPS is $3.10 to $3.35.

Operating cash flow is expected to decline to $1.3 billion to $1.4 billion due to higher restructuring payments and working capital needs. The company also declared a quarterly dividend of $0.35 per share, payable September 15, 2026.

02—Key points

Key Highlights

  1. Fiscal 2026 as-reported net sales rose 5% to $15.05 billion; organic net sales rose 3%, with growth across all geographic regions.
  2. As-reported operating income was $780 million (5.2% margin) versus a $785 million loss in fiscal 2025; adjusted operating margin expanded 320 basis points to 11.2%.
  3. As-reported diluted EPS was $0.50 versus a $(3.15) loss; adjusted diluted EPS rose 66% to $2.51.
  4. Free cash flow was $1.32 billion, compared with $0.67 billion in the prior year, supported by operating cash flow of $1.77 billion and lower capital expenditures of $457 million.
  5. Fiscal 2027 outlook: organic net sales growth of 3% to 5% affirmed; adjusted operating margin raised to 12.7% to 13.5% from 12.5% to 13.0%.
  6. Fiscal 2027 forecast adjusted diluted EPS of $3.10 to $3.35; operating cash flow expected at $1.3 billion to $1.4 billion, down from fiscal 2026 due to higher restructuring payments.
  7. PRGP restructuring approvals concluded as of June 30, 2026, with cumulative charges of $1.4 billion and expected total gross benefits of $1.2 billion.

03—Questions

Frequently Asked Questions

  1. What drove the improvement in profitability in fiscal 2026?

    Adjusted operating margin expanded 320 basis points to 11.2%, driven by operating leverage and gross margin expansion of 150 basis points to 75.5%. The filing cites net benefits from the PRGP, which lowered non-consumer-facing expenses and funded increased consumer-facing investments, which rose 7%.

  2. What is the company's fiscal 2027 outlook?

    The company affirmed organic net sales growth of 3% to 5% and raised its adjusted operating margin outlook to 12.7% to 13.5%. Forecast GAAP diluted EPS is $2.52 to $2.85, adjusted EPS is $3.10 to $3.35, and the adjusted effective tax rate is expected at approximately 33% to 34%.

  3. Why did operating cash flow decline in the fiscal 2027 outlook?

    The filing expects net cash flows from operating activities of $1.3 billion to $1.4 billion, a decrease from fiscal 2026, reflecting higher restructuring payments and increased working capital needs to support growth.

  4. What are the GAAP restructuring charges and what do they relate to?

    Restructuring and other charges reduced fiscal 2026 as-reported operating income by $823 million in total. Cumulative PRGP restructuring charges through June 30, 2026 total $1.4 billion, mostly employee-related costs. The company expects a net reduction of approximately 10,000 positions and total cumulative charges slightly above the high end of the previously announced $1.5 billion to $1.7 billion range.

  5. What dividend did the company declare?

    The company declared a quarterly dividend of $0.35 per share on its Class A and Class B Common Stock, payable in cash on September 15, 2026 to stockholders of record at the close of business on August 31, 2026.

04—Continue

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