Estee Lauder Companies, Inc. (TNYSE: EL
Consumer Staples · Personal Care Products
$79.10
+3.11%
Vol: 7.2M
Research Digest
Friday, May 1, 2026
Estée Lauder crushes Q3 FY2026 earnings; raises guidance; increases restructuring to 9,000-10,000 jobs
Estée Lauder reported Q3 FY2026 (ended March 31) net sales of $3.7B (+5% YoY) with non-GAAP EPS of $0.88 (+35.8% above consensus). Company raised FY2026 adjusted EPS guidance to $2.40 midpoint (+11.6%) and announced expanded restructuring targeting 9,000-10,000 job reductions (up from 5,800-7,000). Organic sales growth of 2% YoY shows momentum recovery. Strategic moves include minority investment in 111SKIN and acquisition of Forest Essentials. Stock up 4.2% post-earnings, currently +6.7% day-of. Management focused on cost efficiency and premiumization strategy.
Previous Market Intelligence
13 daysApr 30Estee Lauder announces minority investment in 111SKIN luxury skincare brand and confirms merger discussions with Spanish beauty company Puig on April 29.Mixed▶
The Estee Lauder Companies announced minority investment in 111SKIN, a luxury clinical skincare brand founded by surgeon Dr. Yannis Alexandrides, emphasizing science-driven innovation. Additionally, company confirmed it is in discussions regarding potential business combination with Spanish beauty firm Puig, which could create $40 billion beauty giant if completed. ELC also acquired remaining shares in Forest Essentials following prior minority stake. Company is navigating turnaround with Q3 2026 earnings due May 1 (estimate $0.66 EPS, $3.69B revenue). Stock trades at $76.52 (down 27.7% YTD) but analysts see 28.34% upside with $97.60 average target. Mixed sentiment on Puig deal execution.
Apr 29Estée Lauder in talks for potential business combination with Spanish beauty company Puig; invests in 111SKIN luxury skincare brand; fiscal Q3 results May 1.Mixed▶
Estée Lauder announced minority investment in 111SKIN luxury clinical skincare brand founded by Dr. Yannis Alexandrides (April 29). Company is in discussions regarding potential business combination with Puig, with J.P. Morgan structuring ~$5.9B financing package for takeover bid. Deal would create ~$40B beauty giant. Also pursuing full acquisition of Forest Essentials following minority stake. Company reached proposed settlement for data breach class actions (CAD $1.5M total). Strong fiscal 2026 H1 results across sales, margins, and EPS led to raising full-year outlook. "One ELC" operating model fully established; WPP appointed first-ever global media partner.
Apr 16Estee Lauder in advanced merger talks with Puig for $40 billion beauty company; Barclays cuts price target to $72.Negative▶
Estee Lauder confirmed advanced merger discussions with Puig Brands to create a beauty company valued over $40 billion, with families controlling both companies exploring ownership balance in the new entity. The stock dropped 6% to $79.80 after the merger announcement. Barclays lowered its price target from $94 to $72 with equal-weight rating. BofA Securities cut its target to $120 from $130 while maintaining Buy rating. Estee Lauder appointed WPP as its first global media partner, transitioning from decentralized regional structures to unified global operations. The turnaround plan is tracking to deliver annual savings at the high-end of its $800 million to $1 billion target range.
Apr 15Estee Lauder appoints WPP as first global media partner, completing One ELC restructuring, but Barclays cuts PT to $72.Mixed▶
Estee Lauder announced WPP as its first-ever global media partner on April 1. Stock traded at $71.44, up 4.24% in 24 hours after beating Q2 2026 EPS ($0.89 vs. $0.83). Barclays cut its price target from $94 to $72 on April 14. Robeco increased its position by 450K+ shares. Analyst consensus: Buy with 12-month PT of $102.43 (+40.76% upside).
Apr 14Estee Lauder establishes One ELC operating model milestone; engaged in non-binding merger discussions with Spanish beauty company Puig.Mixed▶
Estee Lauder established One ELC operating model milestone and is reaching target gross savings in Profit Recovery plan. Named WPP as first global media partner. Governance concerns mounting with law firm investigation on April 11. Engaged in non-binding merger discussions with Puig. Stock at $72.06 with analyst consensus Buy and $102.43 target.
Apr 13Estée Lauder in merger talks with Spanish beauty giant Puig to create $40B+ beauty company; Forest Essentials acquisition ongoing.Mixed▶
Estée Lauder in non-binding merger discussions with Puig (Spanish beauty conglomerate). Puig stock soared 13% on news. EL announced full ownership acquisition of Forest Essentials. Established One ELC operating model, reached profit recovery milestone. Appointed WPP as first-ever global media partner. Wells Fargo lowered PT to $75. Buy consensus from 21 analysts with PT $102.43.
Apr 10Estee Lauder advances One ELC operating model; Puig merger discussions underwayNeutral▶
Fully established One ELC operating model. In non-binding merger discussions with Puig regarding beauty operations combination.
Apr 9Estée Lauder Pursues Business Combination with Puig, Acquires Forest EssentialsPositive▶
The Estée Lauder Companies confirmed discussions regarding a potential business combination with Puig, with Puig stock surging 13% on March 24, 2026. Estée Lauder fully established its "One ELC" Operating Model and reached milestone in profit recovery plan with WPP appointed as Global Media Partner. The company is acquiring remaining shares in Forest Essentials with Mira Kulkarni continuing oversight. Delivered strong FY2026 H1 results with sales, margin and EPS growth, raising full-year fiscal 2026 outlook. Signed actress Daisy Edgar-Jones as Global Brand Ambassador.
Apr 8Estee Lauder in merger discussions with Puig; centralizing media operations with WPP.Mixed▶
Estee Lauder confirms non-binding merger talks with Puig. Centralizing media operations with WPP. Stock $69.96. Buy consensus $102.43 PT.
Apr 7Estee Lauder in Merger Talks with Puig; Launches One ELC Operating ModelPositive▶
Estee Lauder and Puig discussing $40B beauty sector combination. Company announced WPP as first global media partner, advancing One ELC operating model to centralize media operations and leverage AI. Acquired remaining Forest Essentials shares. Raised FY guidance with strong H1 FY2026 results.
Apr 6Estée Lauder in merger talks with Puig for potential $35B megamerger; puts brands up for sale.Mixed▶
Estée Lauder Companies in discussions regarding potential business combination with Puig, with resulting entity potentially valued at $35B—megamerger that has electrified beauty industry. Acquires remaining Forest Essentials shares while founder Mira Kulkarni continues oversee brand in New Delhi. Put three brands up for sale. Signed Daisy Edgar-Jones as Global Brand Ambassador for Estée Lauder skincare/makeup. Stock at $73.61, down from 52-week high $121.64, up from low $48.37. Cautiously optimistic analyst view despite weakness and operational transformations. Q1 2026 earnings report next week with Wall Street expecting growth.
Apr 3Estee Lauder establishes One ELC operating model with WPP partnership and completes Forest Essentials acquisition.Positive▶
The Estee Lauder Companies announced WPP as its first-ever global media partner on April 1, 2026. The company completed its acquisition of remaining Forest Essentials shares. EL delivered strong fiscal 2026 Q2 results, raising full-year guidance. In advanced merger talks with Puig for a ~$40B luxury beauty group.
Apr 2Estée Lauder completes One ELC operating model with WPP global media partnership; merger talks ongoing with PuigPositive▶
Estée Lauder announced on April 1 that WPP is its first-ever global media partner, completing the "One ELC" operating model designed to centralize operations, improve efficiency, and leverage AI-powered data infrastructure. The company is in advanced merger talks with Puig to form roughly $40B luxury beauty group, potentially announced within weeks. EL signed Daisy Edgar-Jones as global ambassador and raised FY2026 outlook following strong Q2 results. Deutsche Bank maintains "Buy" rating with price target reduced from $124 to $108.
Sector Peers
| Company | Price | Day | 1M | Fwd P/E | Beta | Mkt Cap |
|---|---|---|---|---|---|---|
| PGPROCTER | $147.58 | +0.33% | +3.0% | 20.7x | 0.40 | $342.5B |
| KVUEKENVUE | $17.46 | -0.40% | +1.3% | 14.6x | 0.57 | $33.7B |
| ELESTEE | $79.10 | +3.11% | +8.2% | 25.4x | 1.25 | $27.7B |
| WMTWALMART | $131.84 | -0.07% | +4.0% | 40.2x | 0.66 | $1.05T |
| COSTCOSTCO | $1,012.70 | -0.18% | -0.4% | 45.1x | 0.98 | $450.1B |
| KOCOCA | $78.69 | -0.10% | +2.0% | 22.7x | 0.36 | $338.9B |
Key Fundamentals
RSI (14-Day)
52-Week Range
Moving Averages
Price below 200d MA — bearish structure.