The Estée Lauder Companies Inc.: Beauty Reimagined transformation and the One ELC operating model deployment

The Estée Lauder Companies Inc. 2026 Q4: Financial Performance summary

• Brand/category highlights: Jo Malone London and TOM FORD joined the billion-dollar club; Fragrance organic growth was 10% and Skin Care was 4%.
• CapEx was $457 million vs. $602 million last year, supporting improved free cash flow and ending with $3.5 billion in cash on hand.
• Cash flow from operating activities was $1.8 billion (up from $1.3 billion last year) and free cash flow improved despite higher restructuring payments.
• Diluted EPS grew 66% for the full year to $2.51, and increased to $0.39 in Q4 from $0.09 last year.
• Fiscal ’26 reported sales rose 5% and organic sales grew 3%, with positive sales performance every quarter.
• Gross margin expanded 150 basis points; gross margin reached 75.5% in Q4 with 360 bps expansion year over year.
• Operating margin expanded 320 basis points; full-year operating margin was 11.2% (up 320 bps).