Short answer
Estée Lauder Companies (The) (EL) filed its fiscal 2026 10-K annual report with the SEC on Aug 19, 2026. It reported revenue of $15.0B (+5.0% year over year) and net income of $182M.
- Top risk flagged: Regulatory risk: evolving AI use laws and regulations with potential significant compliance costs and operational limits
FY2026 key financial metrics · XBRL
- Revenue
- $15.0B
- +5.0% YoY
- Net income
- $182M
- +116.1% YoY
- Operating margin
- 5.2%
- +10.7 pp YoY
- Gross margin
- 75.5%
- +1.5 pp YoY
- EPS (diluted)
- $0.50
- +115.9% YoY
- ROE
- 4.8%
- +34.1 pp YoY
- Operating cash flow
- $1.8B
- +39.4% YoY
Source: XBRL data from the Estée Lauder Companies (The) (EL) FY2026 10-K on SEC EDGAR. USD.
Estée Lauder Companies (The) FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: Manufacture, marketing and sale of skin care, makeup, fragrance and hair care products globally
- No new products or segments introduced/emphasized; continued focus on established brand portfolio including Estée Lauder, Clinique, MAC, La Mer, and others
- Strategic positioning consistent with prior years, no significant shifts disclosed
- Equity compensation plans allow issuance of up to about 11.7 million additional Class A shares as of June 30, 2026, with total shares outstanding potentially increasing 7% to 388.6 million on full exercise/conversion
- Annual goodwill and indefinite-lived intangible asset impairment test showed no impairment charges for 2026, contrasting with prior year’s $1.273 billion intangible impairment charge
Management Discussion & Analysis
- Net sales $15,049M, up 5% YoY from $14,326M in fiscal 2025; operating income $785M vs loss $(785)M prior year, operating margin 5.2% vs (5.5)%
- Skin Care best segment, operating income $1,416M, up 100+% YoY; worst segment Makeup loss $(70)M, improved from $(441)M
- Operating income by region: Americas loss $(818)M improved by $1,029M, Asia/Pacific up 100+% to $643M, EUKEM up 35% to $51M
- Cash and cash equivalents $3,498M vs $2,921M prior year; capital allocation included dividends, stock repurchases, and capex funded by operations and credit lines (specific amounts not disclosed)
- Management notes tariff impacts on 2026 results, monitoring global tariff risks; outlook assumes adequate liquidity and risk mitigation strategies
Risk Factors
- Regulatory risk: evolving AI use laws and regulations with potential significant compliance costs and operational limits
- Geopolitical exposure: tariffs on imports into U.S. and other countries potentially materially adverse to business
- Supply chain risk: reliance on limited suppliers with risks of shortages, quality control, price increases, or disruptions
- Competitive threat: rapid adoption of AI and digital technologies by competitors, including private-equity-backed Indie Brands
- Key-person risk: Lauder family control with 82% voting power and executive roles, influencing corporate governance and strategic control
Generated from the filing text; verify against the original. How to read a 10-K
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